A new class action lawsuit has been filed against rapper Drake, influencer Adin Ross, and the sweepstakes platform Stake.us, accusing them of deceptive, fraudulent, and unlawful promotion of an online gambling site in Missouri. The lawsuit, lodged by Missouri resident Justin Killham, claims that the duo and Stake misled the public about the nature of the platform, promoting it as a harmless “social casino” when it allegedly functions as a highly addictive and illegal gambling operation.

The lawsuit, filed Monday, October 27, in Jackson County Circuit Court, argues that the promotional activities of Drake and Ross have directly contributed to real-life gambling losses, particularly targeting vulnerable individuals and younger users. According to the complaint, the platform’s deceptive marketing tactics were designed to draw in players who might be unaware of its underlying nature as an unregulated online casino.

Alleged Deceptive Practices and Stake’s Dual-Currency System

The class action lawsuit emphasizes Stake.us’s use of a dual-currency system, which combines non-redeemable “gold coins” with another token called “Stake Cash.” The latter can be wagered on casino games and cashed out for real money, blurring the lines between virtual currency and actual gambling. This system, the lawsuit argues, is an intentional loophole to disguise real-money gambling under the guise of a social game, and it has already garnered significant criticism from lawmakers and regulators.

As the suit claims, this method allows for gambling without clear disclosure to players, with token transactions acting as a “vehicle for real-money gambling.” This dual-currency model, according to the complaint, has contributed to harmful outcomes, especially for those prone to gambling addiction. The lawsuit also notes that this model mirrors other controversial gambling platforms that have faced legal scrutiny in multiple states.

As reported by Rolling Stone, Drake and Ross have both been highly visible promoters of Stake.us, with reports indicating that they received millions in compensation to livestream their gambling sessions. The lawsuit asserts that these streams, often presented as genuine gambling experiences, are misleading, with the pair using “house money” rather than their own funds, contrary to what their audience was led to believe. The complaint states that Drake and Ross have presented these sessions as authentic gambling, while in reality, they were part of a carefully curated marketing strategy designed to deceive viewers.

The lawsuit also claims that these influencers, with their massive social media followings, have played a key role in attracting younger audiences to the platform, some of whom may be legally prohibited from participating in online gambling. The filing specifically highlights that their influence has targeted vulnerable demographics, including teenagers in Missouri and other states.

Legal and Regulatory Context

Missouri law prohibits most forms of online gambling, with the state’s regulated sports betting market only set to launch in December 2025. The lawsuit contends that Stake.us’s operations violate state law by offering gambling under the disguise of a “free-to-play” platform, a practice that experts believe contributes to the normalization of illegal gambling.

John Feldman, a partner at Reed Smith, pointed out the implications of the lawsuit, noting that it could set a precedent for influencer accountability in online gambling. Feldman emphasized that while platform operators may be liable for promoting illegal gambling, this case could also hold influencers like Drake and Ross responsible for misleading their audiences.

The class action seeks damages for Missouri residents who allegedly lost money on Stake.us and aims to prevent the platform from operating in the state. The lawsuit’s ultimate goal is to raise awareness about deceptive practices in the sweepstakes gambling industry and to hold all parties involved accountable for their actions.

This lawsuit comes at a time of increased tension between Drake and Stake, following a public fallout earlier in the year when Drake accused the platform of blocking his attempts to withdraw money. The rapper, who had been actively promoting the platform, took to social media to express his frustration with the company. The legal battle also follows a similar lawsuit filed against Stake in California, with growing concerns over the legality of sweepstakes casinos in the U.S.

Despite these legal challenges, Stake continues to operate, though its practices are increasingly under scrutiny. As the Missouri case moves forward, it could spark further legal challenges for the platform and its high-profile promoters, reshaping the landscape for influencer-led online gambling promotions.