Music heavyweight Drake and gambling operator Stake.us are involved in a complex federal class action lawsuit alleging hidden transactions and the artificial manipulation of music streaming platforms.
The case filed in the U.S. District Court for the Eastern District of Virginia against Aubrey Drake Graham (Drake), streamer Adin Ross, and the sweepstakes company has set the media heather alight, with possible repercussions for the Canadian superstar.
Drake and Stake are at the centre of federal class action lawsuit allegations
The eagle-eyed legal and gambling analyst Daniel Wallach spotted the case before the close of 2025 and hinted that there could be racketeering and money-laundering charges coming the way of the musician.
The last gambling lawsuit of 2025 is a doozy — a federal RICO class action vs. Stake and rapper Drake for promoting an illegal online gambling site under the guise of a fake sweepstakes. Drake is accused of using the platform to artificially inflate play counts of his music. pic.twitter.com/kU8b9JmhPJ
— Daniel Wallach (@WALLACHLEGAL) January 1, 2026
The case, at the moment, stops just short of invoking the Racketeer Influenced and Corrupt Organizations Act (RICO) of 1970, which is often used in cases of organized crime. Understanding whether RICO applies is crucial, as it can significantly affect the severity of penalties and the case’s legal trajectory.
In RICO cases, it is explicitly stated that the evidence and the scrutiny of the existing federal racketeering and financial crime frameworks have been breached.
A filing like the one aimed at Drake has a gulf between the allegations and the exact legal classification, which federal judges take extremely seriously, but Wallach’s breakdown of the filing highlights the severity of the accusations.
Allegations aimed at Drake
One of the most significant claims against Drake and Ross is their purported use of “Stake’s ‘Tipping’ program”, which Wallach highlighted as:
“Through Stake’s Tipping function, Defendants have financed their combined artificial streaming to create fraudulent streams of Drake’s music; fabricate popularity; disparage competitors and music label executives; and distort recommendation algorithms.”
The filing alleges that these transfers were repeatedly cycled among Drake, Ross, and a third defendant to underwrite botting and paid engagement campaigns, rather than planned promotional activity.
Wallach broke down further allegations of artificial intelligence and bot-streaming setups to inflate specific metrics.
Drake is accused of being part of this process, “directly and through willing and knowledgeable co-conspirators,” to influence the figures and suppress competing artists.
“At the heart of the scheme, Drake – acting directly and through willing and knowledgeable co-conspirators – has deployed automated bots and streaming farms to artificially inflate play counts of his music across major platforms, such as Spotify.” pic.twitter.com/BIJLpu1csw
— Daniel Wallach (@WALLACHLEGAL) January 1, 2026
“These inauthentic streams, injected via interstate digital pathways, were calibrated to mislead royalty and recommendation engines; manufacture popularity; distort playlists and charts; and divert both value and audience attention,” read the filing.
What this means for Drake and Stake
This is just one of several legal challenges aimed at Drake, Ross, and Stake, as there are ongoing cases in the Second Judicial District Court of New Mexico and in Missouri.
Missouri plaintiffs claim that Stake.us is falsely marketed as a “social casino” but operates as a real-money gambling platform through a dual-currency system that allows users to wager and cash out “Stake Cash” at a 1:1 rate to U.S. dollars.
The lawsuit also alleges that Stake engaged in deceptive influencer promotion and seeks refunds, damages, and an injunction against Stake.
In New Mexico, plaintiffs are arguing that Stake.us unlawfully enables real-money gambling while presenting itself as a sweepstakes platform.
The suit alleges Drake and Ross played a key role in promoting the service to U.S. users and seeks restitution and injunctive relief. Stake.us has denied wrongdoing, and all allegations in both cases remain unproven and unresolved.
For now, Drake’s Virginia case sits in a legal middle ground, not a racketeering lawsuit, but one built on allegations often examined through the lenses of racketeering and financial crime.
As filed, the lawsuit is a civil matter, not a criminal case, and does not explicitly allege racketeering. However, if the claims are upheld, it could lead to significant regulatory scrutiny, potential fines, or restrictions for Drake, Ross and Stake.
Featured image: Adin Ross via YouTube / Stake.us / Grok.