by
Last name: sued.
Middle: got.
First name: you.
Alright, we’re exposing ourselves as old head Drake fans, but we couldn’t help ourselves with that “Forever” reference. It’s accurate too, because in a weird lawsuit, Drake and streaming phenomenon Adin Ross just caught a case in New Mexico over their promotion of Stake, an online sweepstakes casino.
This is a bonkers lawsuit given the names involved and some of the (frivolous) accusations. Keep on reading and we’ll tell you how Drake and Ross got sued in New Mexico of all places.
Stake Accused Of Illegal Betting Practices
Meet Nathaniel Torres and Rory Michie. Both are residents of New Mexico, and both say they were manipulated by Stake’s platform. They are saying Stake.US — technically a spinoff of the regular Stake site — violates New Mexico’s existing law on gambling.
What is the law, you ask? Welp, online betting is barred in all forms — casino or sports betting apps. Any and all betting inside New Mexico has to be done in-person through the Native American-run casinos. Obviously, these two are arguing that Stake.us should’ve never taken their money in the first place since they’re not allowed in-state.
The lawsuit calls out the sweepstakes nature of Stake. Here’s the money quote:
“To hide the true nature of its online gambling operation, Stake asserts that the only chips it sells to consumers are tokens called ‘Gold Coins,’ which can only be used for ‘casual’ gameplay on the Stake.us platform, have no real-world value, and can never be cashed out,” the suit reads. “However, Stake bundles every purchase of Gold Coins with a second type of token called ‘Stake Cash’ as a supposedly free bonus. Unlike Gold Coins, Stake Cash can be wagered on casino games and cashed out for real money at a fixed 1:1 ratio to the U.S. Dollar – exposing Stake Cash as a clear vehicle for real-money gambling.”
We’ve talked about sweepstakes casinos at length on this website. But its very existence hinges on using “digital” money, instead of real money — even though a user can swap between the two. It’s been a legal loophole that has seen states take action on (banning them), and others haven’t.
As it stands, New Mexico hasn’t taken action on the issue. That’s why we’re doubtful this complaint will hold up in court. Sure, it might be illegal to offer the service, but quite frankly, New Mexico has “bigger fish to fry” than online betting.
Ross, Drake Sued For Promotion
The lawsuit didn’t just stop with Stake, though. As mentioned, Drake and Ross were also caught in the lawsuit. Per the defendants, the way the two stars promoted Stake was “under deeply fraudulent pretenses.”
In case you didn’t know: the bets Drake and Ross make are, most likely, just for show. Drake regularly posts six-figure sports bet tickets on Instagram. Ross will talk about his bets live on stream. Well, it’s just marketing. The money is NOT real, and if it is, it’s being ponied up by Stake, not the celebrities.
The two defendants think that’s fraud. Us? We know this is how business is done. The same goes for many of the success stories you read online from gamblers who hit wild parlays. It’s just a stunt to convince other would-be bettors they have a chance at doing the same.
Drake has not addressed the lawsuits — he’s likely used to these frivolous claims by now. Ross though? Never one to mince words, he aired out his grievances on air.
“I will tell you guys this,” Ross quipped. “Read through the case yourself. It’s fucking bullshit.”
Similar Lawsuit Filed In Missouri
Ironically (or probably not), the trio of Stake, Drake, and Ross was also sued in the state of Missouri. This case is coming from one guy, Justin Killham, who’s claiming similar things as the New Mexico defendants.
Here again, Killham says Stakes shouldn’t even be allowed in his home state. Missouri sports betting just went live, but online casinos remain banned (physical is fine).
He then goes on to attack Drake and Ross, again, for the same reasons. Read this doozy of a quote inside the lawsuit:
“Drake and Ross deceptively and fraudulently misrepresent, as does Stake itself, that Stake is a social casino and not a real one in their promotional role for Stake, and they also fraudulently and deceptively misrepresent that they only gamble with their own money on Stake.”
If we could bet on this — and you might at some offshore sportsbooks or prediction markets — we’d put money on Stake to win these lawsuits. Why? Simple, they have massive pockets to get the best legal team. It’s these pockets that they can afford to pay Drake and Ross millions to promote their platform.
These other guys? Likely just average Joe’s. They can’t get the best representation and will also have their wallets burned through in the litigation process.
So while it’s a fun story to speculate on, we ultimately think nothing comes from this. Bad. Good. No, nothing! Expect Stake, Drake, and Ross to continue business as usual.
