- U.S. class action alleges Drake and streamers promoted illegal crypto gambling via paid livestreams.
- Stake.us is accused of bypassing gambling laws using redeemable virtual tokens.
- Defendants deny claims as plaintiffs seek penalties and recovery of user losses.
Rapper Drake has been named as a defendant in a U.S. class action lawsuit that alleges the promotion of an illegal online crypto casino, alongside livestreamers Adin Ross and George Nguyen. The suit claims the defendants used casino-provided funds to stage gambling livestreams that artificially boosted streaming engagement and encouraged unlawful wagering by U.S. residents.
The complaint was filed by LaShawnna Ridley and Tiffany Hines, who seek to represent Virginia residents and other U.S. users who created accounts on the platform and purchased casino tokens. According to the filing, Stake.us was marketed as a “social casino” to bypass federal and state gambling regulations by claiming it does not facilitate real-money gambling.
Court documents allege that the platform offers approximately 2,000 casino-style games and relies on a dual-currency system. Users wager with Gold Coins, which have no monetary value, and Stake Cash, which can be redeemed for cryptocurrency or digital gift cards at a one-to-one ratio with the U.S. dollar. The suit claims that users who exhaust their Stake Cash must purchase additional Gold Coins, which are bundled with more Stake Cash, to continue playing.
Allegations of Paid Livestream Gambling
The plaintiffs allege that Stake.us paid Drake, Ross, and Nguyen to promote the platform by livestreaming gambling sessions using house funds supplied by the casino itself. Additionally, the lawsuit alleges that Drake received more than $100 million annually for promotional activities. These livestreams were reportedly accompanied by widespread social media advertising portraying the platform as legal and safe for U.S. users.
The class action seeks civil penalties and injunctive relief to halt all promotions of Stake.us. It also seeks to recover losses from users who purchased bundled tokens or lost wagers with Stake Cash during the past three years. Ridley and Hines claim that the promotions encouraged them to gamble on the platform, leading to financial losses and increased risk of addiction.
Responses From Defendants
Stake.us has rejected the allegations, with a spokesperson describing the lawsuit as unfounded. The company stated it does not offer certain features cited in the complaint and said it is not concerned about the legal action. Ross has also previously dismissed similar accusations brought in Missouri last year.
In December, Drake hosted extended livestreams on Kick, urging viewers to help him recover from a losing year in gambling and directing them to Stake.us. Stake.us also faces lawsuits in other US states, and in August, in response to legal action from the Los Angeles City Attorney, Easygo, the Australian founding company of Stake.us, publicly denied all allegations and stated its intention to defend the brand against the lawsuit.
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Source: https://coinedition.com/drake-named-in-u-s-lawsuit-over-alleged-illegal-stake-us-promotions/
