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Drake, Adin Ross & Stake.us Hit With Class Action Over Alleged Illegal Gambling Scheme

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A new class-action lawsuit filed in Missouri accuses rapper Drake, livestreamer Adin Ross and Sweepstakes Limited, the company behind the online casino Stake.us, of promoting an illegal gambling operation disguised as a social gaming site.

Plaintiff Justin Killham alleges he lost money on Stake.us and says the company misled users by presenting itself as a harmless “social casino.” According to the filing, Stake.us used that branding to sidestep Missouri’s restrictions on online gambling.

Stake was launched in 2017 by Australian billionaires Ed Craven and Bijan Tehrani.

The company operates two versions of its gambling platform, Stake.com, which accepts real money wagers internationally, and Stake.us, which targets American users.

LOS ANGELES, CALIFORNIA – JANUARY 18: Adin Ross attends a basketball game between the Los Angeles Lakers and the Sacramento Kings at Crypto.com Arena on January 18, 2023 in Los Angeles, California. (Photo by Allen Berezovsky/Getty Images)

On Stake.us, players buy “gold coins” with no cash value, but those purchases come with a bonus of “Stake Cash,” which can be wagered and later converted into cryptocurrency.

Drake and Ross are both named in the lawsuit for their partnerships with Stake and for marketing the platform online.

The complaint says their content was aimed at teenagers and young adults, and that they used company-provided funds to gamble publicly, creating the illusion of real risk and excitement.

Drake, who has more than 140 million Instagram followers, posted two promo videos for Stake this week, including one showing a claimed $1 million balance in his account.

Earlier this month, California Gov. Gavin Newsom signed a bill banning sweepstakes casinos using this business model.

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