Outline:
Several well-known celebrities are now involved in a major federal lawsuit based in Virginia, alleging that an online “social casino” is actually illegal gambling and was marketed to users in a misleading way.
A group legal action under RICO laws, filed in Alexandria, lists rapper Aubrey “Drake” Graham, streamer Adin Ross, and promoter George Nguyen as defendants along with Sweepstakes Ltd., the company that runs Stake.us, according tocourt records.
The legal action was initiated in the US District Court for the Eastern District of Virginia by plaintiffs LaShawnna Ridley and Tiffany Hines, who are recognized as users of Stake.us.
As stated in the lawsuit, Stake.us has been functioning “as one of the biggest and most successful illegal online casinos since at least 2022,” while marketing itself to users as a harmless “social casino” to evade federal and Virginia gambling regulations.
The filingallegations state that Stake.us provides almost 2,000 casino-themed games and implements a dual-currency system consisting of Gold Coins, which hold no financial value, and Stake Cash, which can be exchanged at a 1:1 ratio for US dollars via cryptocurrency or digital gift cards.
It is claimed that although Stake.us officially states it does not permit real-money betting, users are prompted to bet with Stake Cash and withdraw their earnings, a system that the legal action contends constitutes unlawful gambling in Virginia.
The legal action further claims that Drake and Ross acted as promoters for Stake, and both participated in live-streamed gambling activities using funds “secretly provided by Stake,” while displaying significant wagers to a large online audience.
The core of the RICO allegations revolves around Stake’s user-to-user “Tipping” function, as outlined in the lawsuit, which is characterized as “entirely encrypted and largely uncontrolled,” enabling significant amounts of money to be moved between users without supervision.
Plaintiffs claim that the tipping system was utilized to transfer funds among Drake, Ross, and Nguyen, and to support alleged fake music streaming efforts, referred to as “botting,” associated with Drake’s music.
The complaint also alleges that Stake.us “targets consumers in Virginia and across the country” by deceiving users into thinking the platform is legal, secure, and risk-free, putting them at risk of gambling addiction and significant financial loss.
The legal action includes allegations under the Racketeer Influenced and Corrupt Organizations Act and the Virginia Consumer Protection Act, and requests a trial by jury.
Plaintiffs are requesting class-action status for a national group of users who suffered financial losses while gambling on Stake.us, along with a distinct class for individuals from Virginia.
The full submission is available to read here.
This is an ongoing story. Visit Daily Voice for the latest information.
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