Two New Mexico residents are accusing Drake, streamer Adin Ross, and Sweepstakes Limited, parent company of the online gambling platform Stake, of deceptive business practices in a class action complaint, filed just days after a Missouri man brought forth a similar claim in his suit.
In court documents, obtained by Complex, Nathaniel Torres and Rory Michie claim they have lost money gambling within the past year through Stake.us, which was launched by Sweepstakes Limited, and allegedly serves as a "virtual clone" of Stake.com. The suit alleges Stake.us claims to be a "social casino" but openly violates New Mexico's state gaming and consumer protection laws.
Any form of online gambling is illegal in New Mexico.
The New Mexico complaint uses the same description as the Missouri suit to explain how Stake allegedly skirts the state's online gambling laws.
"To hide the true nature of its online gambling operation, Stake asserts that the only chips it sells to consumers are tokens called 'Gold Coins,' which can only be used for 'casual' gameplay on the Stake.us platform, have no real-world value, and can never be cashed out," the suit reads. "However, Stake bundles every purchase of Gold Coins with a second type of token called 'Stake Cash' as a supposedly free bonus. Unlike Gold Coins, Stake Cash can be wagered on casino games and cashed out for real money at a fixed 1:1 ratio to the U.S. Dollar - exposing Stake Cash as a clear vehicle for real-money gambling."
Similar to the lawsuit filed in Missouri, the complaint in New Mexico also alleges Stake's "free play" marketing preys upon those with a gambling addiction and younger consumers.
The complaint accuses Drake and Ross of promoting Stake.com, as well as Stake.us, via livestream "under deeply fraudulent pretenses." Stake allegedly supplies the two with "house money" for gambling purposes as a means of promoting the platform, which is not shared with the public.
In response to the lawsuit in Missouri, a spokesperson for Stake denied these allegations and vowed to "vigorously defend this and all such claims."
As expected, Ross also rejected any wrongdoing, calling the claims "fucking bullshit."
Torres and Michie are seeking "recovery of their gambling losses" on behalf of themselves and all those in the state that have been impacted.