Drake, Adin Ross Sued Over ‘Deeply Fraudulent’ Promotion of Crypto Casino Stake

As the saying goes, when one Drake case ends, another one begins.

This week as Drake fought A Canadian rapper has been sued in a class-action lawsuit over his years-long promotion of cryptocurrency-fueled online casino Stake, in an effort to revive his dismissed defamation lawsuit over Kendrick Lamar’s diss song “Not Like Us.”

Some users of Stake.us, the company’s U.S. subsidiary, have sued Aubrey Graham, known as Drake, along with Internet personality Adin Ross, alleging that the site was promoted under “serious fraudulent pretenses” and directly exposed young consumers to “substantial risk of financial ruin, emotional distress, and gambling addiction.”

suit, submitted Earlier this week, Stake.us user Justin Killam argued in Missouri county court that “social casino” sites are actually unlicensed online gambling operations that violate Missouri law.

Stake.us advertises itself as a social casino where users can buy and gamble with in-game “gold coins” that have no real monetary value. But in addition to these digital tokens, the site also offers bundles of “staking cash” to its users. This is a digital currency that can be exchanged with the US dollar at a 1:1 ratio and can also be bet on games.

“Despite Defendants’ claims that players are purchasing innocuous virtual tokens, the price structure and gameplay make it clear that the real product Stake is selling to lure players into real money gambling is Stake Cash, not gold coins,” the complaint alleges. “Goldcoin merely serves to deceive regulators and lure players under the guise of ‘safe’ entertainment.”

The lawsuit also alleges that Drake’s years of promoting Stake, which earns him millions of dollars a year, played a key role in expanding the site’s popularity, especially among young people.

The rapper has livestreamed himself numerous times betting huge amounts of money on staked games, and promotes the site on his widely followed social media accounts. The lawsuit alleges that in many cases, Drake and Adin Ross were not placing their own money on such bets, but rather “house money” provided by the stakes, which would be a further violation of Missouri law if not disclosed.

“[Drake’s] “The large public stakes on Stake.com have created what industry experts refer to as the ‘Drake effect,’ significantly boosting the popularity of the Stake brand, especially among young and impressionable audiences who admire Drake’s glamorous lifestyle,” the filing states.

Drake has also shared receipts for large Bitcoin-based bets on sporting events, but he often loses on high-profile Bitcoin bets such as: bet a total of $1 million About last year’s NBA Finals and Stanley Cup Finals.

In some ways, this legal battle is reminiscent of the lawsuit filed after FTX’s collapse in 2022. celebrity promoter Celebrities in cryptocurrency exchanges including Larry David and Tom Brady. Ultimately, most of these lawsuits were dismissed, primarily because celebrities have no knowledge Regarding internal fraud at FTX.

By contrast, most of the allegations in this week’s stake suit do not involve confidential company information that promoters like Mr. Drake and Mr. Ross do not know.

The lawsuit also comes at a time when existing U.S. gambling laws are being tested by all kinds of rebel newcomers. expert said decryption It was announced earlier this week that the emergence of sports-specific prediction markets that seek to circumvent gambling regulations is causing a number of problems for authorities and could lead to rampant insider trading.