The class action lawsuit, filed in Virginia, seeks US$5 million in damages from global e-casino Stake, Drake, Ross, and an Australian internet personality. The plaintiffs allege violations of the Racketeer Influenced and Corrupt Organizations (RICO) Act and US consumer protection laws.
Stake has strongly denied the claims. A spokesperson for the company described the allegations as “nonsense” and said the company was “not concerned” about the lawsuit.
Allegations of Stream Manipulation
According to court filings, the lawsuit claims that Stake’s US-facing platform, Stake.us, was used to help fund automated or “bot” streams to increase Drake’s popularity and royalty income on music streaming services, including Spotify.
Stake.us operates differently from its main platform. While Stake.com is licensed in Curaçao and banned in several countries, including the US, UK, and Australia, Stake.us does not allow direct real-money gambling. Instead, users wager with digital tokens, some of which can be purchased and later withdrawn as cryptocurrency.
The plaintiffs allege that the platform’s anonymised design made it possible to move gambling-related funds in ways that were difficult to trace, ultimately allowing money to be used to pay for artificial music streams.
Role of Third Parties
Court documents name an Australian man, George Nguyen, who is alleged to have received funds through Stake-related systems and then converted them into cash or cryptocurrency to pay vendors that provide automated streaming services. The lawsuit claims Nguyen operated online accounts used to promote Drake and the gambling platform.
The filings also allege that Drake transferred millions of dollars as part of the scheme, including large payments to Ross. Public posts, chat logs, and leaked communications are cited as evidence of Nguyen’s involvement.
Stake disputes these claims, stating that Stake.us does not have a tipping or transfer function that could be used in the manner described in the lawsuit.
Claims of Consumer Harm
The lead plaintiffs, Tiffany Hines and LaShawnna Ridley, allege they suffered serious financial harm after being encouraged to gamble on Stake through celebrity promotions. The lawsuit claims the platform misled users into believing it was legal and low-risk, while exposing them to illegal gambling and potential addiction.
The suit also alleges that Stake paid Drake up to US$100 million per year and provided gambling credits to both Drake and Ross, claims that have not been proven in court.
Wider Legal Pressure
Stake and its affiliates are facing legal challenges in multiple US states. A similar lawsuit was filed in Missouri in October, which Ross publicly dismissed at the time. In response to other legal actions, Stake’s Australian parent company, Easygo, has said it rejects the allegations and intends to vigorously defend itself.
Since 2022, Drake has frequently promoted Stake on social media and on Kick, a livestreaming platform owned by Easygo. In several posts, he publicly shared large gambling losses and encouraged followers to participate in promotions.
Drake, Ross, and Nguyen have been contacted for comment. The case remains ongoing, and the allegations have not been tested in court.
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