New class action filed by two consumers in Virginia accuses music superstar Drakethe streamer Adin Ross and a third man based in Australia for luring users to real money games on the casino platform Stake.us as part of a racketeering conspiracy that allegedly used the proceeds to “artificially inflate the number of streams from Drake’s catalog”.
The complaint, filed in federal court in Virginia, claims the three men worked with Stake to “attack consumers”illegally expose them to “substantial risks of gambling addiction” and jeopardize their financial well-being. The plaintiffs say they were “influenced to participate” to the“predatory gaming environment” of Stake after seeing Drake's paid promotion for the site, including live-streamed gaming sessions and giveaways.
According to the complaint, Drake, Ross and the Australian national, identified as George Nguyen, acted as “zealous promoters” of Stake in exchange for payment and access to the platform, which the lawsuit describes as a “money transfer conduit” secret. (Stake, which is owned by Sweepsteaks Ltd. in Cyprus and operates Stake.us from offices in Dallas, Ross and Nguyen did not immediately respond to a request for comment. A representative for Drake declined to comment.)
Embezzlement and fake streams
The lawsuit, filed by LaShawnna Ridley and Tiffany Hines, alleges that the three men used the function of “tip” (tipping) of the rapper to directly transfer money between them. The complaint characterizes the program as “unlimited and completely unregulated money transmitter that appears to exist outside the oversight of any financial regulator”. She further alleges that the funds were then used to finance fraudulent streams of Drake's music and “amplification campaigns” which sometimes targeted competitors with derogatory content.
Nguyen is identified in the complaint as the owner of the Instagram news account @grandwizardchatn***a. The lawsuit alleges that he served as “broker and operational facilitator”receiving cryptocurrency through Stake channels as part of the alleged conspiracy, and then “interfacing with bot vendors, overseeing coordinated amplification strategies and integrating paid clipping campaigns” on social media platforms including X (formerly Twitter).
An “imminent” threat
The filing claims that public posts, chat logs and leaked communications document the “Nguyen’s direct management of funds via multiple payment platforms, orchestration of narrative pushes, and amplification” alongside Drake and Ross. He alleges that the scheme dates back to 2022 and “remains a continuing and imminent threat of racketeering activity”.
“Plaintiffs were harmed by the deceptive marketing manipulation and abuse of defendants Drake, Ross and Nguyen, who participate in the marketing of Stake”the complaint states. She adds that the complainants were “manipulated into registering and transacting on Stake.us based on defendants’ statements”.
The lawsuit seeks to represent Virginia residents who have lost one or more bets using Stake Cash over the past three years. It includes allegations that the defendants violated the Virginia Consumer Protection Act, engaged in a racketeering conspiracy, and conducted a pattern of racketeering activity in violation of the federal RICO statute.
This lawsuit is not the first to target Drake, 39, and Ross, 25, for their ties to Stake. Last October, a Missouri man filed a similar proposed class action against the men and Sweepsteaks Limited. An attorney representing the three defendants successfully had that case moved from Missouri state court to federal court last month.
The Missouri and Virginia lawsuits both allege that Stake.us uses an illegal dual-currency system that bundles virtual, allegedly non-tradable “gold coins” with a second type of token, called “Stake Cash,” that can be cashed out for real money. This type of dual-currency model is seen as a cop-out by critics and has faced backlash from lawmakers. California Governor Gavin Newsom signed a bill last year to address the problem.
