Drake, Adin Ross, and Stake.us Named in Sweeps Casino Lawsuit

A lawsuit filed in Missouri has named Sweepsteaks Ltd., the operator of Stake.us, streamer Adin Ross, and the rapper Drake, alleging violations of state gambling laws. 

The lawsuit is seeking class-action status and is asking that Sweepsteaks stop offering casino-style games and provide financial compensation to those impacted. 

More on the Lawsuit

Interestingly enough, the lawsuit hasn't yet been officially filed, but drafts of it have begun to circulate. 

The lead plaintiff in the suit is Justin Killham of Independence, Missouri, and it states that he lost money while playing at Stake.us. 

Ross and Drake were named in the suit due to their promotional work for the company. It also said that "Stake’s and Drake’s and Ross’s conduct here threatens the welfare of Missouri residents and especially its young people."

The brief also mentions Missouri laws governing online casino play and states that Stake violated those laws. 

Additionally, the suit argues that, under Missouri law, residents who have lost money playing games with unlicensed operators can recover those losses. 

Daniel Wallach, the co-founder of the sports wagering segment at the University of New Hampshire Law School, a professor at the University of Miami School of Law, and a Forbes contributor, broke the story, writing this on X:

"BREAKING: Canadian rapper Drake and online influencer Adin Ross have been sued along with sweepstakes casino website http://Stake.us for promoting illegal online gambling in Missouri. The class action seeks to hold Drake and Ross liable for class members' gambling losses.

The class in question, per the plaintiff, is  “all persons in Missouri who gambled and lost money in Stake’s online casino at any time during the five years preceding the filing of this action.”

Sweepsteaks is also facing a lawsuit in California. 

Where This Could Go

The suit hasn't been officially filed yet, but if it is, Sweepsteaks will likely file a motion to dismiss, citing federal law and the fact that Independence, Missouri, is not the proper location for a hearing. 

If that doesn't work, Sweepsteaks has previously had other cases go to arbitration due to their terms of service, which typically state that any legal action would be resolved through arbitration. 

Of course, sweepstakes casinos have been under fire lately, with states, including most recently California, making them illegal. 

Still, in cases filed by individuals, these cases have been mostly unsuccessful. 

Will this one break through in Missouri, where there's been essentially zero talk surrounding sweepstakes casinos? We'll keep our eyes out for additional updates.