Stake.us hit with class action as Drake and Adin Ross named in alleged illegal gambling case

A class action lawsuit filed in Jackson County Circuit Court, Missouri, has named Canadian rapper Drake, livestreamer Adin Ross, and online gaming company Sweepsteaks Limited — operator of Stake.us — as defendants.

The case, brought by Missouri resident Justin Killham, alleges that the defendants promoted and profited from what the suit describes as an “illegal gambling scheme” disguised as a social casino.

Allegations of illegal gambling practices

The complaint claims that Stake.us operated in violation of Missouri’s restrictive gambling laws, which only permit limited forms of gaming such as charitable events and the state lottery.

Killham argues that the company circumvented these laws by using a dual-currency system that bundled purchases of “gold coins,” which have no cash value, with “Stake Cash,” a bonus currency that could be wagered and later converted into cryptocurrency or real money.

According to the filing, Killham lost money “as a result of Defendants’ wrongful trade practices.” The lawsuit asserts that this structure constitutes a “clear vehicle for real-money gambling,” despite the company’s classification of Stake.us as a social casino.

Stake was co-founded in 2017 by Australian entrepreneurs Ed Craven and Bijan Tehrani. The company runs Stake.com, its global gaming site, and Stake.us, which operates separately for US users. Forbes previously estimated that Stake.com generated $4.7 billion in revenue in 2024, and that Craven and Tehrani each hold a net worth of $2.8 billion.

Claims of deceptive marketing

Drake and Adin Ross, both partners of Stake, are accused of engaging in “deceptive, fraudulent, and unfair” marketing practices targeting young and vulnerable audiences. The lawsuit contends that the two public figures used their influence on social media to promote gambling as risk-free entertainment.

Livestreamer Adin Ross is also named in the suit

It alleges that both entertainers conducted livestreams and social media posts featuring gambling sessions where they appeared to use their own money but were instead betting with “house money” supplied by Stake. The complaint claims this created a false perception of authenticity and encouraged fans — particularly teenagers — to join the platform.

Drake, who has 142 million followers on Instagram, reportedly posted two Stake-related promotions this week, including a video showing a $1 million balance in his Stake account. Ross, known for his gaming and lifestyle content on platforms like Kick and YouTube, has also featured Stake gambling streams prominently in his broadcasts.

Wider legal scrutiny of dual-currency casinos

Stake’s business model is part of a growing legal debate over “dual-currency” gaming platforms in the US. Earlier this month, California Gov. Gavin Newsom signed legislation banning online sweepstakes casinos using similar structures.

In August, Los Angeles City Attorney Hydee Feldstein Soto also filed a separate lawsuit against Stake.us, calling it a “carbon copy” of Stake.com and alleging it “looks like gambling, sounds like gambling, and feels like gambling because it is gambling.”