A class-action lawsuit filed with the 16th Circuit Court of Jackson, Missouri, names Stake, a prominent crypto gaming and betting platform, Canadian rapper and entertainer Drake, and Internet personality and streamer Adin Ross, over their alleged promotion of a dangerous product under false pretenses in the state of Missouri.
Lawsuit targets Stake, Drake, and Adin Ross over "house money"
Plaintiff Justin Killham argues that the company promoted its services through popular Internet and cultural personalities, who used "house money," and thus created a false sense of the involved personal risk, potentially harming residents of Missouri.
Stake issued an official response to reports that its name has been involved in the lawsuit through a spokesperson for SiGMA News:
"We have not been served at this time. We reject allegations that have been made in the media in relation to this potential claim and will vigorously defend this and all such claims."
The lawsuit was published on David Wallach’s profile on LinkedIn. Wallach is a US Gaming Law and Sports Betting Attorney, and he has been following important topics in the ecosystem, including prediction markets and sweepstakes.
Stake.us is specifically named in the lawsuit, which is Stake’s free-to-play platform that is available in Missouri as well. The complaint argues that Adin Ross and Drake were sponsored by Stake to play with "house money" but did not disclose this to the public.
"To wit, when Ross and Drake purport to gamble online with Stake, they often do not do so with their own money despite telling the public in Missouri and elsewhere the opposite. This fact is not shared with the public in Missouri by Stake and/or Rossand/or Drake. These acts are deceptive, fraudulent, and unfair and violate Missouri law."
The lawsuit argues that Drake is directly sponsored by both Stake.us and Stake.com, and the rapper’s celebrity status is leveraged strategically to "encourage impressionable users to gamble." The complaint also describes the rapport between Drake and the Stake companies, where Drake began as a player and gradually transitioned to play a more prominent role in the community.
Drake’s celebrity status and relationship with Stake focus of the lawsuit
The complaint further points out that Drake participates in giveaways, and his X and Instagram accounts display Stake signage and brand imagery. Given Drake’s role and involvement with Stake, the complaint argues that the company garners strong visibility because of its rapport with the rapper.
"Drake’s role as Stake’s unofficial mascot is quietly corrosive—he’s glamorizing the platform to millions of impressionable fans, many of whom treat his wild betting habits like gospel. What makes it even more unsettling is that Stake apparently fronts Drake and Ross 'house money,' so any reported losses are part of a marketing tactic designed to draw attention," the plaintiff argues.
All of this could he harmful to Missouri residents, and younger people – including teenagers, the complaint adds.
