Drake Gambling Lawsuit: Rapper Sued for Promoting Illegal Online Casino Stake

Canadian rapper Drake is facing a class-action lawsuit in Missouri that accuses him of promoting an illegal and fraudulent online gambling scheme through his partnership with the crypto-based casino platform, Stake. The complaint, filed in Jackson County Circuit Court, alleges that Drake and fellow influencer Adin Ross helped glamorize unlicensed online gambling to millions of impressionable fans.

Inside the Drake Gambling Lawsuit

The lawsuit was filed by Missouri resident Justin Killham, who claims to have lost money gambling on Stake’s U.S. version, Stake.us. The filing, led by the Carey Danis & Low law firm, also names Stake’s parent company, Sweepstakes Limited, as a defendant. The suit argues that Stake.us is an unlicensed and illegal online casino disguised as a “social gaming” platform that uses a dual-currency model to evade gambling laws.

Under this system, players purchase “Gold Coins” for entertainment but receive bonus “Stake Cash” that can be wagered on casino-style games and redeemed for cryptocurrency or real money. According to the complaint, this structure transforms what appears to be harmless entertainment into a real-money gambling platform that operates without regulatory oversight.

The class action seeks damages for affected Missouri residents and calls for an injunction to stop Stake, Drake, and Ross from promoting or operating the platform in the state.

The “Drake Effect” and Celebrity Influence

Drake, whose real name is Aubrey Graham, has been closely associated with Stake since 2022, appearing frequently in livestreams and social media posts showcasing high-stakes wagers. The lawsuit claims these gambling sessions are not funded by Drake’s personal money but by Stake itself as part of a marketing strategy.

Lawyers describe this as the “Drake Effect”,  a phenomenon where the rapper’s posts and livestreams drive massive attention to Stake, particularly among younger audiences. By presenting gambling as part of a luxurious lifestyle, the suit alleges, Drake and other influencers normalize and glamorize risky behavior to millions of followers.

Court filings argue that these promotions blur the line between entertainment and advertising, misleading consumers about the risks and legality of online gambling.

Allegations of Deceptive Marketing

The complaint asserts that Stake and its celebrity promoters engaged in deceptive trade practices by presenting the platform as a social casino when, in practice, it offered real-money gaming. The site’s “live dealer” options, slot-style games, and cash-out mechanisms mirror the experience of a licensed casino, but without the same legal protections.

Stake’s advertisements, the suit says, have already faced scrutiny from regulators and platforms. Twitch previously banned Stake-related content over consumer protection concerns, prompting the company to launch its own streaming service, Kick, in 2023. The complaint links both Drake and Ross to these ongoing promotional efforts, alleging that their sponsorship deals were designed to bypass U.S. gambling restrictions.

Legal Experts See Wider Implications

Industry observers believe the Missouri lawsuit could have far-reaching consequences for the future of influencer marketing in the gambling sector. John Feldman, a gambling law specialist, noted that such cases may open the door to “facilitator liability,” where influencers could be held accountable for promoting unlicensed gambling platforms.

Online gambling remains illegal in Missouri, though regulated sports betting is set to launch in December 2025. The lawsuit’s outcome could influence how state and federal authorities treat cross-border digital casinos operating under “social gaming” or sweepstakes casino models.

If successful, the class action could pave the way for similar cases in other states where Stake.us operates. Legal experts point to previous multi-million-dollar settlements against social casinos in Washington and California as evidence that civil suits, rather than regulatory enforcement, are becoming a key tool in curbing deceptive gambling practices.

Stake’s Controversial Reputation

Stake, founded in 2017 and licensed in Curaçao, has built a massive following through crypto-based betting and influencer partnerships. Its estimated global revenue exceeded $4.7 billion in 2024, making it one of the most profitable online casino brands worldwide.

However, Stake has faced repeated legal challenges across several jurisdictions. In the U.K., the Gambling Commission suspended its local platform earlier this year following a regulatory review. In the United States, seven states have filed lawsuits or investigations into the company’s sweepstakes model.

The Missouri complaint is the first to include Drake as a named defendant, marking a significant escalation in the scrutiny facing celebrity-backed gambling promotions.

Next Steps in the Case

As of late October, no hearing date has been set in the Missouri case. The lawsuit is expected to test whether influencer-driven gambling promotions can be held to the same standards as traditional advertising under state law.

The plaintiffs argue that the defendants’ actions exposed consumers, particularly young people, to “financial ruin, psychological distress, and gambling addiction.” Representatives for Drake, Ross, and Stake have not issued public responses to the allegations.

Broader Context

The lawsuit comes at a time when regulators are increasingly focusing on the intersection between gambling, cryptocurrency, and online influencers. With billions flowing through unregulated gaming platforms, the case underscores the growing tension between digital marketing, entertainment, and consumer protection.

Whether the lawsuit succeeds or not, it raises an important question for both fans and policymakers: when does celebrity endorsement cross the line into promotion of illegal activity?

As the gambling industry expands its reach through streaming and social media, the answer to that question could shape the future of online casino marketing across the United States.