Drake Sued in Federal Class Action RICO Lawsuit

A class action RICO lawsuit was filed Thursday in federal court against Drake and his associates George Nguyen and comedian Adin Ross, plus the cryptocurrency online gambling site Stake.us and its parent company Sweepsteaks Ltd., accusing them of illegal gaming and unregulated money transfers related to fake music streaming, according to USA TODAY.

The lawsuit, filed in the US District Court for the Eastern District of Virginia, contends that Drake's ongoing feud with fellow rapper Kendrick Lamar is "at the heart of the scheme," which "deployed automated bots and streaming farms to artificially inflate play counts of (Drake's) music across major platforms, such as Spotify."

The suit was filed on behalf of LaShawnna Ridley and Tiffany Hines, who claim they were "influenced by the defendants' promotions to participate in the online casino's allegedly illegal gambling environment."

The filing calls Stake.us "one of the largest and most profitable illegal online casinos."

Drake was reportedly paid $100 million a year since 2022 to promote the site. His co-defendants Ross and Nguyen have also been accused of "promoting an illegal online casino while using proceeds from the site to artificially inflate streams of (Drake's) music."

The lawsuit claims the three men used Stake.us to "obscure transmissions of money" to further their "ongoing music botting campaigns."

It further claims the men used Stake's tipping program to "directly transfer money between and among themselves…outside the oversight of any financial regulator."

Users of Stake.us (the American version of Stake.com) were added as Plaintiffs in the suit, which alleges violations of the federal Racketeer Influenced and Corrupt Organizations (RICO) Act, and the Virginia Consumer Protection Act. Lawyers have requested a jury trial, and are asking for monetary damages.

The lawsuit claims that Stake.us was created to bypass restrictions after Stake.com was banned from operating in the US, according to USA TODAY.

"While the website was marketed as a 'social casino' that bars 'real money gambling' the suit alleges that language was meant to dupe regulators and consumers."

The website uses "Stake Cash" and "Gold Coins" as virtual currencies, however, the suit alleges that "Stake Cash has real dollar value and can be cashed in by users for cryptocurrency, amounting to real gambling."

"Drake, 39, and Ross, a comedian and Twitch streamer, were paid to promote the platform by participating in livestreamed gambling with cash 'surreptitiously' provided by Stake, according to the filing."

"Through these and other promotions, Stake has bombarded consumers with advertisements appearing on social media platforms, depicting its games as safe, legal, and fun," according to the complaint.

"But these casino games are illegal in Virginia and throughout the United States, and have inflicted harm on consumers across the Commonwealth who have lost real money chasing gambling wins on the Stake platform."

The lawsuit also claims that money from the site was used to "create fraudulent streams of Drake's music; fabricate popularity; disparage competitors and music label executives; distort recommendation algorithms; and distribute financing for all of the foregoing, while concealing the flow of funds."

Drake (Photo credit: Dia Dipasupil)