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Drake and streamer Adin Ross have been named as defendants in a new lawsuit against the online gambling platform, Stake.
According to a report Complex published on Friday, October 31, lawyers for two men in New Mexico, Nathaniel Torres and Rory Michie, filed their own class action lawsuit against Drake, Ross, Stake, and its parent company, Sweepstakes Limited, just days after they were accused of fraudulent business practices by a man in Missouri. Torres and Michie claim they lost money over the past year while gambling on Stake.us, which is a property of Sweepstakes Unlimited.
"To hide the true nature of its online gambling operation, Stake asserts that the only chips it sells to consumers are tokens called 'Gold Coins,' which can only be used for 'casual' gameplay on the Stake.us platform, have no real-world value, and can never be cashed out," the new suit reads. "However, Stake bundles every purchase of Gold Coins with a second type of token called 'Stake Cash' as a supposedly free bonus. Unlike Gold Coins, Stake Cash can be wagered on casino games and cashed out for real money at a fixed 1:1 ratio to the U.S. Dollar - exposing Stake Cash as a clear vehicle for real-money gambling."
The claims in Torres and Michie's lawsuit are similar to the allegations listed in Justin Killham's legal complaint. Killham's lawyers called Stake's platform a "social casino" and explained that the Curaçao-based livestream gambling platform uses a "dual currency" system: "gold coins" for fun and "sweep coins." The "sweep coins" can be exchanged for cash. Killham's legal team argued that the system is used to dodge state regulations, since the practice isn't considered full-on gambling. They also accused Stake of “openly violating Missouri state gaming and consumer protection laws.”
Both lawsuits also accuse Drake and Adin Ross of deceiving their fans while promoting the platform. They allege the rapper and the streamer use "house money" from Stake to play their games without telling potential customers. The lawsuit from New Mexico alleges the marketing of Stake's "free play" targets people with gambling addictions and impressionable, young fans.
A rep for Stake denied the allegations while Ross himself called the lawsuits "f**king bulls**t." Drake also seemingly dismissed the first lawsuit by making another post dedicated to Stake, in which he wrote, "Rage baiting since 2023 @stake."