A class action lawsuit has been lodged in the Jackson County Circuit Court, Missouri, naming Canadian rapper Drake, livestreamer Adin Ross, and online gaming company Sweepsteaks Limited, which operates Stake.us as defendants.
The complaint, filed by local resident Justin Killham, claims that the defendants have been involved in promoting and profiting from what is described in the lawsuit as an “illegal gambling operation” masquerading as a social casino.
Accusations of unlawful gambling activities
The lawsuit alleges that Stake.us is operating against Missouri’s strict gambling regulations, which only allow limited gaming activities such as charitable games and the state lottery.
Killham contends that the company bypassed these laws through a dual-currency model, combining the sale of “gold coins” (which hold no real monetary value) with “Stake Cash,” a bonus currency that can be used for betting and converted into cryptocurrency or cash.
The complaint states that Killham incurred financial losses due to the “unlawful trading practices” of the defendants. The lawsuit claims this setup is a “clear mechanism for real-money gambling,” even though Stake.us is labeled a social casino.
Founded in 2017 by Australian entrepreneurs Ed Craven and Bijan Tehrani, Stake operates both Stake.com globally and Stake.us for U.S. users. Forbes had previously estimated that Stake.com earned approximately $4.7 billion in revenue in 2024, and both co-founders have a reported net worth of $2.8 billion.
Accusations of misleading advertising
Drake and Adin Ross are accused of employing “deceptive, fraudulent, and unfair” marketing techniques aimed at young and impressionable audiences. The lawsuit claims both celebrities leveraged their social media presence to promote gambling as a harmless form of entertainment.
Livestreamer Adin Ross is included in the legal action
According to the allegations, both figures conducted livestreams and social media promotions showcasing gambling sessions that suggested they were wagering their own money, but in reality, they were using “house money” provided by Stake. This created a misleading sense of authenticity, enticing fans—particularly teenagers—to sign up on the platform.
Drake, boasting 142 million followers on Instagram, reportedly shared two promotions related to Stake this week, including a clip displaying a $1 million balance in his Stake account. Ross, known for his gaming and lifestyle content across platforms such as Kick and YouTube, has prominently featured Stake gambling streams in his broadcasts.
Increased legal scrutiny of dual-currency casinos
The business model of Stake is at the center of an expanding legal discussion surrounding “dual-currency” gaming platforms in the U.S. Earlier this month, California Governor Gavin Newsom enacted legislation prohibiting online sweepstakes casinos with similar structures.
In August, Los Angeles City Attorney Hydee Feldstein Soto also initiated a separate lawsuit against Stake.us, branding it a “carbon copy” of Stake.com and claiming it “resembles gambling, conveys the characteristics of gambling, and fundamentally constitutes gambling.”