Drake, Stake and Adin Ross face federal class action over alleged streaming manipulation

Music heavyweight Duck and gambling operator Stake.us are embroiled in a complex federal class action alleging hidden transactions and 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 Rossand the sweepstakes company has inflamed the media, with possible repercussions for the Canadian superstar.

Drake and Stake are at the center of federal class action allegations

Legal and gambling analyst Daniel Wallach spotted the case before the end of 2025 and suggested racketeering and money laundering charges could be brought against the musician.

The latest gambling lawsuit of 2025 is a doozy – a federal RICO class action against 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 the number of plays of his music. pic.twitter.com/kU8b9JmhPJ

-Daniel Wallach (@WALLACHLEGAL) January 1, 2026

For now, the case does not go so far as to invoke the Racketeer Influenced and Corrupt Organizations (RICO) Act of 1970, which is often used in organized crime cases. Understanding whether RICO applies is crucial, as it can significantly affect the severity of penalties and the legal trajectory of the case.

In the RICO cases, it is explicitly stated that the evidence and scrutiny of existing federal racketeering and financial crime frameworks were violated.

A case like the one against Drake presents a gap between the allegations and the exact legal characterization, which federal judges take extremely seriously, but Wallach’s breakdown of the case highlights the seriousness of the accusations.

Allegations against Drake

One of the most prominent allegations against Drake and Ross is their alleged use of Stake’s “‘Tipping’ scheme”, which Wallach highlighted as follows:

“Through Stake’s Tipping feature, defendants funded their combined artificial streaming to create fraudulent streams of Drake’s music; manufacture popularity; denigrate competitors and music label executives; and distort recommendation algorithms.”

The filing alleges that these transfers were made repeatedly between Drake, Ross and a third defendant to secure paid botting and engagement campaigns, rather than planned promotional activities.

Wallach broke down other claims about 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 personalities and suppress competing artists.

"At the heart of the scheme, Drake – acting directly and through willing and capable co-conspirators – deployed automated bots and streaming farms to artificially inflate the number of plays to his music on major platforms, such as Spotify." pic.twitter.com/BIJLpu1csw

-Daniel Wallach (@WALLACHLEGAL) January 1, 2026

“These inauthentic feeds, injected via interstate digital pathways, were calibrated to mislead royalty and recommendation engines; manufacture popularity; distort playlists and rankings; and divert both audience value and attention,” the filing reads.

What this means for Drake and Stake

This is just one of several legal challenges facing Drake, Ross and Stake, as cases are pending in 2nd Judicial District Court in New Mexico and in Missouri.

The Missouri plaintiffs claim that Stake.us is falsely represented as a “social casino” but operates as a real money gaming platform through a dual currency system that allows users to wager and cash out “Stake Cash” at a rate of 1:1 to the U.S. dollar.

The lawsuit also alleges that Stake engaged in deceptive promotion of influencers and seeks refunds, damages and an injunction against Stake.

In New Mexico, plaintiffs claim that Stake.us illegally allows real money gambling while presenting itself as a sweepstakes platform.

The suit alleges that Drake and Ross played a key role in promoting the service to U.S. users and seeks relief and injunctive relief. Stake.us has denied any wrongdoing and all allegations in both cases remain unproven and unresolved.

For now, the Drake case in Virginia strikes a legal middle ground; it is not a racketeering trial, but a trial based on allegations often examined through the lens of racketeering and financial crime.

As filed, the suit is a civil matter, not a criminal one, and does not explicitly allege racketeering. However, if the allegations are confirmed, 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.

The position Drake, Stake and Adin Ross face federal class action over alleged streaming manipulation appeared first on ReadWrite.

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