Drake and Stake Hit with Class-Action Lawsuit Over 'Deceptive' Sweepstakes Casino

^{Drake might need more than “God’s Plan” to beat this lawsuit, which could make for Stake’s biggest legal liability yet. (Photo: @champagnepapi / Instagram)}

A Missouri man has filed a class-action lawsuit against Drake, Adin Ross, and Stake.us claiming the platform's advertising is misleads users by disguising the site as a “harmless” social casino.

Plaintiff Justin Killham filed the case in Jackson County Circuit Court against Sweepsteaks Limited, the parent company that operates the Stake's sweepstakes casino brand.

Lawsuit Criticizes Drake’s ‘Corrosive’ Influence 

This isn't the first time that Stake has been part of the larger trend of lawsuits against sweepstakes casinos in the United States. However, the addition of celebrity endorsers is a new wrinkle to the Missouri court action.

“Drake’s role as Stake’s unofficial mascot is quietly corrosive,” the lawsuit reads. “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.”

Like other sweepstakes casinos, Stake uses a dual-currency system. Players can use free Gold Coins to play for fun or Sweeps Coins that can be redeemed for prizes. While players cannot directly purchase Sweeps Coins, they’re usually bundled as a “bonus” when purchasing Gold Coins – something critics say is a thinly-veiled way of directly offering real money gambling.

A recent study commissioned by the American Gaming Association found that 90 percent of sweepstakes casino users see them as gambling sites. Killham's lawsuit alleges Stake of offering illegal gambling in Missouri., where online casinos are currently prohibited. Legal online sports betting is expected to launch in the state in December.

Drake's $100M Endorsement Deal Goes Sour

Drake signed a $100 million-per-year endorsement deal with Stake in 2022. As a part of that deal, Drake agreed to play on Stake.com while streaming his high-stakes activity to his fans, sometimes wagering millions of dollars at a time.

Drake later had a falling out with Stake, claiming that the site had blocked his attempts to withdraw funds on at least four different occasions. Drake appeared to cut his ties with Stake, calling Stake co-founder Ed Craven a “snake” and saying that “we built this shit…and they treat us like shit” during a livestream on Kick with Trainwreck, another influencer endorsing Stake.

Video game streamer Adin Ross, best known for his NBA 2K and Grand Theft Auto V livestreams, is also named in the lawsuit. Ross is also known for his many collaborations with celebrities on Twitch, Kick, and other platforms.

Sweepstakes casinos like Stake.us are facing mounting opposition from state governments across the US. Most recently, California signed a ban on sweepstakes casinos into law in October, dealing a serious blow to the industry given the size of its player base.

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