Stake, Drake & Adin Ross Hit with Missouri Class Action Lawsuit

A Missouri resident has filed a class action lawsuit against Stake.us and dragged Drake and Adin Ross into the proceedings, accusing them both of being part of a “deeply fraudulent scheme designed to skirt gambling laws.”

The case, brought by Missouri resident Justin Killham, targets Sweepsteaks Limited, the operator behind Stake.us sweepstakes casino. Killham claims the platform’s entire setup is built to look like a free-to-play casino, while functioning as the real thing. The lawsuit also names Stake’s founders Ed Craven and Bijan Tehrani, who Forbes recently pegged at $2.8 billion each in terms of net worth, and references Stake.com’s staggering $4.7 billion in 2024 revenue.

Stake.com is the world’s biggest crypto casino, with approximately 50% market share of the whole crypto gambling space, but it’s officially restricted in the United States where real money online casinos simply cannot operate. Stake.us is a sweepstakes casino open to US residents in most states thanks to its social casino set-up, but the court case hinges on just how legitimate that really is.

The Heart of the Allegation

At issue is Stake.us’s dual-currency system. Players buy Gold Coins for entertainment but receive a side stash of Stake Cash, essentially Sweeps Coins, that can be wagered and later redeemed for crypto. The suit argues this mechanic is simply real-money gambling in disguise, violating Missouri law and consumer-protection statutes. Killham says he lost money while under the impression he was playing a legal social casino.

Similar cases have been filed in Illinois, Alabama and Los Angeles this year, with the Los Angeles case filed by the City Attorney Hydee Feldstein Soto.  Essentially, all these lawsuits accused Stake.us of offering illegal gambling products disguised as a social casino. The Alabama case also went after Stake.us for failure to verify age and location, and all the cases are still pending. Stake.us pulled out of multiple states this year in response to a hostile environment or pending legislation, but that hasn’t kept it out of the courts entirely.

Celebrities Dragged into the Mire

Drake and Ross are accused of pushing the platform to minors through high-visibility streams and posts. The filing goes further, claiming the pair never risked their own funds and instead played with “house money”, with staged wins designed to drive hype. One cited example: Drake flaunting a $1 million Stake balance to his 142 million Instagram followers, a post the suit calls “illegal promotion of gambling to Missouri residents.”

Drake has more than 142 million followers on Instagram alone, and is arguably the biggest star in music. Adin Ross started out as a Twitch gaming streamer and is now one of the biggest streamers in the world, with millions of followers and an equity stake in Kick. Between them the two celebrities have formidable reach and they are two of the best known influencers in the gambling space.

Sweeps Casinos Under Fire

It has been a rough year for the Sweepstakes Casino industry, with Montana, Connecticut, New Jersey, New York and California all passing new legislation to outlaw the dual-currency model, although not all of them have been officially signed in to law as yet. Delaware, Nevada, Louisiana, Mississippi and several other states sent a series of cease-and-desist letters using existing laws to take a stand against sweepstakes casinos. There’s no sign of the legal action slowing down and this high-profile case that has pulled in two of the world’s biggest celebrities could bring another wave of negative publicity.