Drake named in RICO lawsuit over alleged Stake gambling and streaming scheme

ATLANTA, GA - DECEMBER 9: Rapper Drake performs onstage during "Lil Baby & Friends Birthday Celebration Concert" at State Farm Arena on December 9, 2022 in Atlanta, Georgia. (Photo by Prince Williams/Wireimage)
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Summary:

  • Canadian rapper Drake faces class action lawsuit for promoting illegal online gambling and music streaming manipulation scheme.

  • Lawsuit filed in Virginia names Drake, streamer Adin Ross, and George Nguyen as defendants.

  • Complaint alleges RICO violations and claims Stake.us allowed illegal gambling and inflated Drake’s music streams.

Canadian rapper Drake is facing a federal class action lawsuit that accuses him of participating in an illegal online gambling operation tied to an alleged music streaming manipulation scheme, according to a complaint reported by USA TODAY.

The lawsuit, filed Dec. 31 in Virginia, names Drake, streamer Adin Ross, and George Nguyen as defendants. Plaintiffs allege the group promoted the online casino Stake.us while using proceeds from the platform to artificially inflate streams of Drake’s music.

Filed on behalf of LaShawnna Ridley, Tiffany Hines, and all U.S. users of Stake.us, the complaint alleges violations of the Racketeer Influenced and Corrupt Organizations Act and the Virginia Consumer Protection Act.

According to the filing, Stake.us is described as the American-facing version of Stake.com, which has been banned from operating in the United States. The lawsuit claims Stake.us was structured as a so-called social casino to bypass gambling regulations, despite allegedly allowing users to wager real money through virtual currencies that could be converted into cryptocurrency.

The suit alleges Drake and Ross were paid to promote Stake by participating in livestreamed gambling sessions using funds covertly supplied by the platform. While Stake.us advertises the use of Gold Coins and Stake Cash as virtual currency, plaintiffs argue Stake Cash has real monetary value and can be redeemed for cryptocurrency, effectively constituting illegal gambling in multiple states, including Virginia.

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Beyond gambling allegations, the complaint expands into claims of large-scale music streaming manipulation. Plaintiffs allege funds generated through Stake were used to operate automated bots and streaming farms to inflate Drake’s play counts on major platforms, including Spotify. The lawsuit claims the activity distorted recommendation algorithms, suppressed competing artists, and misled consumers about Drake’s popularity.

The filing states that the alleged scheme was designed to “fabricate popularity” and “undermine the integrity of curated music experiences,” accusing Drake of being central to the operation.

Drake has not publicly addressed the lawsuit. Plaintiffs are seeking monetary damages and a jury trial. The case remains pending.

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