Drake hit with lawsuit over alleged illegal gambling scheme
What's the story
Drake, the Canadian rapper, is facing a class action lawsuit over claims that he promoted an illegal online casino and used its proceeds to artificially boost music streams. The suit, filed on Wednesday, December 31, names Drake, streamer Adin Ross, and George Nguyen as defendants, according to USA Times. It claims they used Stake.us to "obscure transmissions of money" for their "ongoing music botting campaigns." The plaintiffs are LaShawnna Ridley and Tiffany Hines.
Allegations
Stake.us: A tool for illegal gambling and music manipulation?
The lawsuit alleges that Stake.us, the US version of Stake.com, was created to circumvent bans on online gambling. It describes the site as "one of the largest and most profitable illegal online casinos." Despite being marketed as a "social casino" with no real money gambling, the suit claims this was a ruse to mislead regulators and consumers.
Currency concerns
Stake.us's virtual currency and promotional tactics under scrutiny
The lawsuit also takes issue with Stake.us' use of "Stake Cash" and "Gold Coins" as virtual currency. It alleges that these have real dollar value and can be converted into cryptocurrency, constituting real gambling. Drake and Ross were reportedly paid to promote the platform by participating in livestreamed gambling sessions with cash provided by Stake.us.
Tipping program
Alleged misuse of Stake's tipping program and music manipulation
The lawsuit further alleges that Drake, Nguyen, and Ross used Stake's tipping program to transfer money among themselves without any financial oversight. The lawsuit also alleges that the platform's proceeds were used to generate fake streams of Drake's music, inflate his popularity, undermine competitors and label executives, manipulate recommendation algorithms, and finance these activities while hiding the flow of funds.
Integrity at stake
Drake's alleged actions undermined music integrity, lawsuit claims
The plaintiffs allege that Drake used automated bots and streaming farms to artificially inflate play counts on major platforms like Spotify. This alleged manipulation was intended to rewire music algorithms and ensnare listeners, effectively suppressing "authentic artists" and narrowing "consumers' access to legitimate content by undermining the integrity of curated experiences." The lawsuit accuses Drake of being "at the heart of the scheme."
Legal action
Plaintiffs seek damages and jury trial under RICO Act
The plaintiffs are seeking $5 million in damages and a jury trial, alleging violations of the RICO Act (Racketeer Influenced and Corrupt Organizations) and the Virginia Consumer Protection Act. Per The Martinez Law Firm, " RICO targets organized criminal activity by allowing prosecutors to charge individuals or groups who engage in an ongoing pattern of illegal conduct through an enterprise." The allegations against Drake come amid his ongoing feud with fellow musician Kendrick Lamar.