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Rapper Drake, livestreamer Adin Ross and Sweepsteaks Limited, the company that owns the online “social casino” Stake.us, were sued in a class action lawsuit in Missouri that accuses Drake and Ross of “deeply fraudulent” marketing for the company.
It is the latest in a handful of suits against sweepstakes casinos.
Sweepstakes casinos like Stake.US skirt gambling laws as there is no direct gambling with real money. Instead, customers purchase virtual coins (also known as Sweeps Coins or gold coins) to play for fun. These coins can then be used to play games where winnings are redeemed for real cash prizes. The Sweeps are part of a promotional sweepstakes system, not a wager per se.
In the lawsuit, plaintiff Justin Killham says he lost money on Stake.us “as a result of Defendants’ wrongful trade practices,
The suit accuses Drake and Ross, both of whom have partnerships with Stake, of targeting teenagers with their marketing for the platform and gambling using “house money” Stake provides them, so any losses they might share on social media are “part of a marketing tactic designed to draw attention.”
Drake regularly promotes the Stake websites via his social media platforms.
Daniel Wallach, a renowned gaming attorney, noted that there have been a total of five class action lawsuits against the operators of online sweepstakes casino websites filed within the last 48 hours alone, including the Stake suit. The other four defendants included:
- FSG/Schorr (Utah)
- High 5 Games (Ohio)
- Yellow Social Interactive/Pulsz (Utah)
- Money Factory (Utah)
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- Gilbert Horowitz, Gambling911.com
