Sensational claim
A new class-action lawsuit filed in the US District Court for the Eastern District of Virginia has accused Drake and streamer Adin Ross of using online casino proceeds to “artificially inflate streaming counts for Drake’s catalog.”
part of a racketeering conspiracy
On New Year’s Day, Rolling Stone revealed that music superstar Drake, Ross, and a man based in Australia are part of an alleged racketeering conspiracy involving real-money gambling on the crypto casino platform Stake.
The plaintiffs, Virginia consumers LaShawnna Ridley and Tiffany Hines, claim that the trio worked with Stake to “prey upon consumers,” while illegally exposing them to the “substantial risks of gambling addiction,” and risking their financial well-being.
Ridley and Hines allege they were “influenced” into taking part in Stake’s “predatorial gambling environment” after viewing the Canadian rapper’s paid promotion of the platform, “including live-streamed gambling sessions and giveaways.”
RICO, Spotify violations
Ridley et al. v. Sweepsteaks Ltd. d/b/a Stake.us et al seeks to represent Virginia customers who, in the last three years, lost wagers using Stake Cash. It includes claims that the defendants violated federal RICO laws and the Virginia Consumer Protection Act related to racketeering.
The plaintiffs allege that Drake, Ross, and Australian influence broker George Nguyen used Stake’s peer-to-peer “tipping” feature to directly wire money among themselves.
The suit claims that Stake’s tipping program is an “unlimited and wholly unregulated money transmitter that appears to exist outside the oversight of any financial regulator.”
Ridley et al claim that the Stake funds were later used to finance shady streams of Drake’s music and “amplification campaigns” created by digital strategist Nguyen. The Australian middleman broker allegedly used Drake’s and Ross’s Stake money to fund the illegal “clipping campaigns” on social media platforms, including X.
artificially inflate play counts of his music
Drake is accused of being “at the heart of the scheme” and that he acted directly in tandem with Nguyen and streamer Ross to use “automated bots and streaming farms to artificially inflate play counts of his music across major platforms, such as Spotify.”
According to Rolling Stone, the complaint adds that the trio’s machinations “suppressed authentic artists and narrowed consumers’ access to legitimate content by undermining the integrity of curated experiences.”
Similar suit underway
The lawsuit against Drake, Ross, and Stake is the second this year. In October, a plaintiff filed a similar suit in Missouri, accusing Drake of using his “celebrity influence to encourage impressionable users to gamble.”
Both suits allege Stake.us uses an illegal, twin-currency system that bundles virtual, purportedly non-refundable “gold coins” with a second token called Stake Cash “that can be cashed out for real money.”
Stake’s twin-currency system is deemed a loophole by critics and has come under fire from lawmakers, including California Governor Gavin Newsom, who signed a bill last year against the practice.
