Multiple lawsuits have been filed in Missouri and New Mexico against rapper Drake, internet personality Adin Ross, and online gambling platform Stake, alleging they promote illegal gambling and engage in deceptive marketing practices.
The legal actions claim that Drake, with over 142 million Instagram followers, and Ross have used their considerable influence to glamorize online gambling while misleading fans about the risks involved.
Stake operates two main websites: Stake.com for international users and Stake.us for American users. The platform, co-founded by billionaires Ed Craven and Bijan Tehrani in 2017, markets itself as a “social casino” in the United States. Critics argue this designation is merely a façade to circumvent state gambling laws.
Stake.us employs a complex system using “gold coins,” which have no real-world value, alongside “Stake Cash,” which can be used for actual gambling through cryptocurrency transactions.
The lawsuits specifically target the marketing strategy employed by the defendants, claiming that Drake uses “house money” provided by Stake to place extravagant bets, creating a false impression about gambling outcomes. This “Drake Effect” allegedly boosts Stake’s popularity among fans who may not understand that the rapper’s gambling experiences differ substantially from those of regular users.
Drake’s lavish “house money” bets create a misleading fantasy that drives fans toward gambling’s harsh reality.
Legal documents filed in Missouri include a class action suit from a resident who reportedly lost money due to these deceptive practices. The plaintiffs assert that the defendants’ actions violate state gambling laws and constitute fraudulent marketing designed to attract users under false pretenses, particularly targeting impressionable audiences including teenagers.
The litigation raises significant concerns about celebrity influence in the promotion of gambling activities. Much like effective music promotion that requires clear audience targeting, influencers like Drake leverage their personal brand to connect with specific demographic groups. Recent California legislation has outlawed similar sweepstakes casinos that operate under comparable business models as Stake. The lawsuits particularly cite Drake’s public statements downplaying gambling addiction as a mere construct of platforms, reflecting a harmful narrative that minimizes serious risks associated with betting behaviors. As social media continues to blur the lines between entertainment and advertisement, these cases may establish important precedents regarding influencer responsibility and online gambling regulations.
State authorities in both Missouri and New Mexico are closely monitoring these proceedings, which could potentially reshape how gambling platforms operate within state boundaries.
Artists seeking legitimate income alternatives might instead consider sync licensing deals, which offer musicians legal and lucrative opportunities to monetize their work through placement in visual media.
