Canadian rapper Drake is a defendant in a class action lawsuit against Stake.us, a sweepstakes casino platform.
The plaintiffs filed the case in Missouri against Sweepsteaks Ltd., Stake’s parent company. Additionally, they listed streamer Adin Ross as a defendant in the case. According to Forbes, the plaintiffs allege that Drake and Ross were involved in fraudulently promoting the platforms.
The company is owned by Ed Craven and Bijan Tehrani. Craven and Tehrani also own the real-money gaming platform by the same name with a different URL address, available to gamblers outside U.S. borders.
Drake has had a longstanding partnership with Stake and regularly posts his play on his social media channels.
Lawsuit Claims ‘Wrongful Trade Practices’
Plaintiff Justin Killham alleges he lost money on the U.S. platform “As a result of Defendants’ wrongful trade practices.”
Like many sweepstakes casinos, Stake.us uses a dual-currency structure. Players purchase gold coins that can be used functionally as play money. However, players receive a corresponding amount amount of a secondary currency which can be redeemed for cash and prizes.
Killham alleges that the setup is actually meant to circumvent state gambling laws. He believes the the platform is nothing more than an online gambling operation. The suit refers to the dual-currency system as a “Clear vehicle for real-money gambling.”
The suit further argues that the company targeted teenagers through its marketing efforts on social media.
Sweepstakes casinos have been under increasing criticism over the last few years. Several state legislatures banned the platforms. California was the most recent state to implement a ban.
Operators argue that users can play games for free, and are under no obligation to purchase anything.
Stake.us was also sued in California earlier this year. However, the California case was brought by the Los Angeles City attorney and is still pending an outcome.
The news comes as the platform recently expanded its poker offerings.
