"Drake has been accused of participating in a racketeering conspiracy built around the online casino Stake. A class action lawsuit filed in Virginia this week argues that Stake is running an illegal gambling operation in the United States, in which Drake, who is paid to promote the platform, is complicit. It further alleges that he is funnelling proceeds-via Stake's unregulated "tipping" system-to a third party, in Australia, to invest in bot farms that illegally boost Drake's streaming numbers."
"The basis of the lawsuit is that Stake operates in U.S. states, such as Virginia, that have outlawed real-money online gambling. Eyeing a possible (and highly contentious) legal loophole, Stake circumvents the online-gambling ban by selling "play money" that comes with free tokens. While the play money is worthless, the tokens can be wagered and later converted into cash for withdrawal."
"Founded in Australia in 2017, Stake is a multibillion-dollar company whose fortunes skyrocketed during the cryptocurrency boom. It signed an endorsement deal with Drake in 2022 worth a reported $100 million a year; he has since undertaken frequent livestreams of online gambling sessions and giveaways. This past August, Drake seemingly fell out with the platform after having withdrawal attempts blocked. The matter appeared resolved in October when he posted a video staging his discovery of a $1 million balance restored to his account."
A Virginia class-action lawsuit accuses Drake of participating in a racketeering conspiracy centered on the online casino Stake. The complaint alleges Stake operates an illegal real-money gambling operation in U.S. states that ban such activity by selling "play money" with free tokens that can be wagered and later converted into cash. The suit claims Drake promoted the platform and funneled proceeds through Stake's unregulated "tipping" feature to an Australian third party to invest in bot farms that boost streaming numbers. Sweepstakes Ltd., Adin Ross, and George Nguyen are named as defendants.
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