Drake Sued in Missouri Over ‘Deceptive’ Stake.us Online Casino

Drake is being sued by a Missouri man who claims the music superstar, along with influencer Adin Ross and an online casino named Stake.us, received “unjust enrichment” from the purportedly “deceptive” sweepstakes casino.

In a 34-page class action complaint obtained by Rolling Stone, plaintiff Justin Killham alleges Drake and Ross actively misled consumers when they promoted Stake.us as a “harmless” social casino when, according to the lawsuit, it’s a “highly addictive” and “unlawful gambling platform.”

Filed Monday in Jackson County Circuit court, the lawsuit accuses Drake and Ross of “deceptive, fraudulent and unfair” practices that violate Missouri law and cause real-life gambling losses to at-risk users.

“Stake’s deceptive trade practices have inflicted severe harm on the vulnerable in Missouri, and especially on individuals prone to gambling addiction and younger consumers targeted through Stake’s ‘free play’ marketing,” the lawsuit states. It alleges Stake.us created a dual-currency system that bundles its virtual, purportedly non-redeemable “gold coins” with a second type of token called “Stake Cash” that can be wagered on casino games and cashed out for real money at a fixed 1:1 ratio to the U.S. dollar. This makes token transactions “a clear vehicle for real-money gambling,” the lawsuit states.

This type of dual-currency model is considered a loophole by critics and has faced a backlash by legislators. California Gov. Gavin Newsom signed a bill earlier this month to address the problem. (Attempts to reach reps for Drake, Ross and Stake were not immediately successful Tuesday.) 

Drake and Ross have been high-profile promoters of Stake, receiving millions from the company to engage in livestream gambling promoting the platform. These streams are carried out “under deeply fraudulent pretenses,” the lawsuit claims. “When Ross and Drake purport to gamble online with Stake.com, they often do not do so with their own money despite telling the public in Missouri and elsewhere the opposite,” the filing states. The complaint argues that “Stake’s influencer marketing, especially through Drake and Ross, is directed, among others, at teenagers in Missouri and in other states.”