- Drake and Adin Ross face RICO charges in Virginia over claims Drake used Stake to funnel $100 million to buy fake Spotify streams through bots.
- This marks their second Stake lawsuit following Missouri's case back in October.
Richmond, Va. - Drake and streamer Adin Ross are facing another major lawsuit over their partnership with online gambling platform Stake. On December 31st, Virginia prosecutors filed accusations alleging violations of RICO Act statutes, which are often used to target organized crime groups.
Drake allegedly used Stake.us as a channel to transfer almost $100 million annually to Australian celebrity George Nguyen, according to a recent complaint filed in the Eastern District of Virginia.
In contrast to state-regulated blackjack in Virginia, Stake.us operates as a sweepstakes casino in a legal gray area. According to the lawsuit, Nguyen then used that money to purchase streams through bot networks and streaming farms in order to increase Drake's Spotify numbers.
In order to inflate his play counts, Drake collaborated with accomplices to use these bots on major music sites. The lawsuit alleges that by manipulating the algorithm, legitimate artists attempting to advance their careers were harmed and that real music listeners' access to streaming platforms was restricted.
This is the second lawsuit against Drake and Ross related to their Stake relationship. Back in October, Missouri brought a case against them, arguing that their heavy promotion of the sweepstakes casino pushed people into dropping significant amounts of cash on losing bets.
The focus of that action was on the claimed financial harm that their endorsements brought to the people who trusted them. While platforms offering online blackjack in Missouri face strict regulatory requirements, Stake operates outside traditional gambling oversight.
The Virginia lawsuit represents a significant advancement. Prosecutors now claim that Drake operated an organized fraud scheme that rigged the music streaming market in order to profit from racketeering, going beyond simple careless advertising and the typical problems with gaming promotion and legal blackjack.
Tiffany Hines and LaShawnna Ridley, the plaintiffs, are requesting a jury trial and $5 million in damages. There are currently no criminal papers on file, thus the charges are still civil.
Despite having three weeks to respond to the accusations, Drake, Ross, and Nguyen have failed to comment. When contacted by the media, Stake representatives likewise declined to comment.