Two Virginia residents filed a class-action lawsuit in federal court accusing music artist Drake, streamer Adin Ross, and an Australia-based associate of promoting real-money gambling through the casino platform Stake.us as part of an alleged racketeering conspiracy.

According to Rolling Stone, the complaint alleges the three individuals worked with Stake to expose consumers to gambling risks while using platform proceeds to artificially inflate streaming counts for Drake’s music catalog. Plaintiffs LaShawnna Ridley and Tiffany Hines claim they were influenced to participate in Stake’s gambling environment after viewing Drake’s paid promotions, including live-streamed gambling sessions and giveaways.

The lawsuit targets Stake.us’s business model, which bundles virtual “Gold Coins” marketed as recreational with “Stake Cash” tokens that can be wagered and exchanged for real money. Plaintiffs argue this dual-currency structure allows the platform to operate in states where online casinos are otherwise prohibited by disguising gambling as sweepstakes.

Drake and Ross are accused of promoting Stake.us through livestreams and social media posts that featured high-stakes betting, giveaways, and dramatic wins, thereby encouraging viewers to sign up. The complaint states these advertisements created false perceptions of reduced risk while downplaying the potential for financial loss and addiction.

California Governor Gavin Newsom signed legislation last year addressing dual-currency systems, which critics consider a regulatory loophole.

Allegations Extend Beyond Gambling Promotion

The lawsuit alleges that Stake’s user-to-user tipping feature functioned as an unregulated money-transfer system, allowing funds to move between accounts without traditional financial oversight. The complaint characterizes the program as “an unlimited and wholly unregulated money transmitter that appears to exist outside the oversight of any financial regulator.”

According to the filing, Drake used funds linked to Stake activity to finance fraudulent streams of his music through automated bots and streaming farms across platforms, including Spotify. The complaint alleges this manipulation “suppressed authentic artists and narrowed consumers’ access to legitimate content by undermining the integrity of curated experiences.”

George Nguyen, identified as the owner of the Instagram account @grandwizardchatn***a, is accused of serving as “broker and operational facilitator,” receiving cryptocurrency through Stake channels and interfacing with bot vendors to supervise coordinated amplification strategies. The lawsuit alleges the scheme dates to 2022 and “remains an ongoing and imminent threat of racketeering activity.”

Legal Claims and Parallel Cases

The lawsuit includes claims that defendants violated the Virginia Consumer Protection Act and engaged in racketeering activity under the federal RICO (Racketeer Influenced and Corrupt Organizations) statute. It seeks to represent Virginia residents who lost wagers using Stake Cash within the last three years.

Rolling Stone notes that a Missouri man filed a similar proposed class action against Drake, Ross, and Sweepsteaks Limited in October. A lawyer representing all three defendants moved that case from Missouri state court to federal court in December. Both the Missouri and Virginia lawsuits allege Stake.us operates an unlawful dual-currency system.

Global Regulatory Developments

Regulators in multiple jurisdictions are addressing influencer-led gambling promotion. 

South Africa’s National Gambling Board announced plans to restrict advertising during hours when minors are likely online and prevent operators from hiring influencers whose audiences consist mainly of young people. Acting CEO Lungile Dukwana said the regulator aims to reduce youth exposure to gambling content and curb misleading claims presenting betting as aspirational or risk-free. Gross gaming revenue in South Africa rose 25.7% year-on-year to R59.3 billion (€2.9 billion) in 2023/24, driven by mobile betting growth.

New Zealand’s Department of Internal Affairs issued takedown notices to influencers promoting offshore online casinos, marking the country’s first enforcement action against social media gambling promotion. Influencers face fines up to $10,000 per breach under the Gambling Act for publishing advertisements for offshore operators.

Sweden’s gambling authority Spelinspektionen launched supervision against influencers marketing unlicensed gambling through platforms including Twitch. Following regulatory action, the influencers stopped promoting the operators in question.

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