Missouri Lawsuit Challenges Sweepstakes Casino Promos by Stake.us, Drake, and Adin Ross

Key Moments:

  • A Missouri class action lawsuit has accused Stake.us of operating an illegal online casino
  • Drake and Adin Ross are alleged to have promoted Stake.us using “house money” while presenting bets as personal
  • The complaint could influence enforcement of sweepstakes and social casino models across the United States

Class Action Questions Legality of Sweepstakes Model

Stake.us, along with rapper Drake and influencer Adin Ross, has become the focus of a new class action lawsuit filed in the Jackson County Circuit Court, Missouri. The case, brought by Justin Killham, asserts that Stake.us is running an illegal online casino in a state where iGaming is prohibited. The plaintiff contends that Stake.us uses a dual-currency system to mask real gambling activities.

Additionally, the lawsuit claims that both Drake and Ross misled viewers by pretending to place bets with their own money, while actually wagering with funds supplied by Stake.us. According to the suit, these promotions painted Stake.us as a legitimate social casino, allegedly benefiting Drake and Ross in the process.

Influencer Promotions Under Regulatory Scrutiny

The involvement of Drake and Adin Ross has amplified questions about influencer marketing in the gambling sector. It is stated that Drake entered into a significant promotional agreement with Stake.com and Stake.us in 2022, reportedly valued at over $100 million. His livestreams and public bets on the Kick platform reportedly played a substantial role in Stake’s brand recognition. However, these same promotional tactics now face evaluation as potential violations of state law.

The situation serves as a clear signal to operators and affiliates on the importance of transparent marketing and strict adherence to state regulations. The case stands as a reminder for affiliates to ensure the brands they promote are authorized within each jurisdiction.

Potential Impact on U.S. Sweepstakes Casino Regulation

The Missouri case references a bulletin from the Missouri Gaming Commission declaring all online casinos illegal, even though sweepstakes casinos were not named specifically. The suit alleges that Stake.us’s practices amount to selling gambling products disguised as social gaming—an action the plaintiff claims violates the Missouri Merchandising Practices Act.

To illustrate the potential precedent, a similar lawsuit in California against Chumba Casino’s promoters, including Ryan Seacrest, was dismissed. The current Missouri filing revives the debate over the regulatory boundaries for social and sweepstakes casinos.

Implications for Industry Stakeholders

Drake reportedly deleted his Kick account in August, and Adin Ross has since confirmed the end of their related streams. As Stake.us updates its promotional tactics, other gambling operators are expected to reassess influencer partnerships and compliance measures.

This case brings forward the critical question for the iGaming industry: how long will sweepstakes-based casinos be able to leverage promotional structures before regulators insist on greater oversight and formal licensing?

StakeholderAllegation/Action
Stake.usAlleged illegal operation in Missouri using sweepstakes model
DrakeAccused of misleading fans regarding promotional betting, ended Kick streams in August
Adin RossAccused of misleading fans regarding promotional betting, streams ended
Missouri Gaming CommissionIssued bulletin declaring online casinos illegal
  • Author

Daniel Williams

Daniel Williams has started his writing career as a freelance author at a local paper media. After working there for a couple of years and writing on various topics, he found his interest for the gambling industry.
Daniel Williams
Casino Guardian covers the latest news and events in the casino industry. Here you can also find extensive guides for roulette, slots, blackjack, video poker, and all live casino games as well as reviews of the most trusted UK online casinos and their mobile casino apps.

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