In the opening days of 2026, Canadian rap superstar Drake has been hit with a major new legal challenge that has sent shockwaves through both the music and digital entertainment industries. A federal class-action lawsuit filed on December 31, 2025 in the U.S. District Court for the Eastern District of Virginia accuses Drake of participating in a racketeering conspiracy tied to the online casino platform Stake.us, alleging that the promotional activities he undertook helped facilitate illegal gambling and were linked to efforts to artificially inflate his music streaming numbers.
The complaint, brought by two Virginia residents, names not only Drake but also popular livestreamer Adin Ross, Australian national George Nguyen, and the online casino’s U.S. arm, Stake.us. According to the lawsuit, Stake.us has operated in U.S. states that have outlawed real-money online gambling by using a sweepstakes or “social casino” model, which plaintiffs claim is a facade to conceal unlawful gambling activities. Drake and Ross are accused of promoting Stake through paid posts, livestreamed gambling sessions, and giveaways, encouraging fans to engage with the platform under misleading pretenses.
Beyond the gambling allegations, the lawsuit makes more explosive claims regarding music streaming manipulation. It argues that proceeds generated through Stake’s unregulated “tipping” feature were used to fund bot farms and automated streaming operations designed to artificially boost Drake’s play counts across major platforms, distort recommendation algorithms, and “fabricate popularity.” These tactics, according to the plaintiffs, not only mislead consumers but undercut fair competition in the music business by drowning out authentic artists.
The complaint asserts violations of the Racketeer Influenced and Corrupt Organizations Act (RICO) as well as the Virginia Consumer Protection Act, and seeks at least $5 million in damages on behalf of affected Stake users. It points to internal tipping transactions — including publicly reported large transfers between Drake and Ross — as evidence of how funds may have been moved among the defendants and into the alleged streaming manipulation efforts.
This isn’t the first time Drake’s involvement with Stake has faced legal scrutiny. Similar lawsuits filed in Missouri and New Mexico in 2025 accused him and Ross of misrepresenting Stake.us as a harmless social casino rather than an unlawful gambling outfit, alleging deceptive marketing that targeted younger, impressionable fans.
Industry observers and fans alike have reacted with a mix of surprise, skepticism, and debate over the seriousness and potential ramifications of the case. Some legal analysts note that proving RICO violations — especially in the context of entertainment and streaming metrics — could be challenging, while others suggest that the lawsuit could set significant precedents for how celebrity endorsements of gambling platforms are regulated and how digital streaming integrity is protected. Public reaction on social platforms has ranged from incredulity to commentary on the broader implications for artist promotion and gambling culture.
At this stage, Drake and the other named defendants have not issued public responses to the Virginia filing, and the case will move through preliminary motions, including considerations of class certification and the legal sufficiency of the allegations under RICO statutes. Whatever the outcome, the lawsuit marks one of the most contentious intersections between celebrity endorsements, online gambling, and music streaming ever seen in recent years.
