Rapper Drake Named in Federal RICO Lawsuit Alleging Gambling Promotion and Streaming Fraud
A federal class action lawsuit filed under the Racketeer Influenced and Corrupt Organizations Act has named rapper Drake and online gambling platform Stake as defendants in an alleged scheme to promote illegal gambling and manipulate music streaming metrics through coordinated fraud.
The complaint, which represents plaintiffs nationwide, alleges that Drake leveraged his celebrity status to promote Stake while simultaneously using the platform's financial infrastructure to artificially inflate streaming numbers for his music, distorting industry metrics and potentially defrauding competitors and consumers.
Background and Context
The lawsuit centers on Stake's alleged operation as an unlawful online casino disguised as a sweepstakes platform—a regulatory loophole that has allowed gambling companies to operate in jurisdictions where traditional online gambling remains restricted. According to the filing, this structure enables Stake to bypass state and federal gambling regulations while offering casino-style games to US customers.
Simultaneously, the case highlights growing concerns about streaming manipulation in the music industry. Platforms like Spotify, Apple Music, and YouTube rely heavily on algorithmic recommendations that consider streaming volume when determining playlist placement and chart performance. Artificial inflation of these metrics can significantly impact an artist's commercial success and industry influence.
Key Figures and Entities
Drake, born Aubrey Drake Graham, stands as the primary celebrity defendant in the case, accused of both promoting Stake and utilizing its services to facilitate streaming manipulation. The complaint identifies two additional co-conspirators referred to as "Ross" and "Nguyen," who allegedly assisted in coordinating the fraudulent activities.
Stake.com, the gambling platform at the center of the allegations, operates globally and has secured high-profile endorsement deals with multiple celebrities in recent years. The company maintains that its sweepstakes model complies with applicable laws, though regulatory scrutiny has increased across multiple jurisdictions.
Legal and Financial Mechanisms
The RICO allegations center on Stake's "Tipping" feature, which the lawsuit describes as an unregulated money transmission system operating outside conventional financial oversight. According to court documents, Drake and his associates allegedly used this system to transfer funds between accounts, financing automated bot networks and streaming farms designed to generate fraudulent plays of his music.
The complaint details how these transfers allegedly enabled the purchase of streaming manipulation services from third-party providers, creating artificial engagement across multiple platforms. This activity, according to the filing, violates the Computer Fraud and Abuse Act and constitutes wire fraud under federal statutes.
International Implications and Policy Response
The case adds to mounting scrutiny of celebrity gambling endorsements, which have faced increasing regulatory attention worldwide. Several countries have implemented stricter rules regarding gambling advertising, particularly when targeting younger demographics who may be influenced by celebrity promotions.
Additionally, the streaming manipulation allegations highlight ongoing challenges in maintaining data integrity across digital entertainment platforms. Regulatory bodies, including the Federal Trade Commission and various international consumer protection agencies, have intensified investigations into bot-driven fraud schemes that distort market metrics across industries.
Sources
This report is based on the federal class action complaint filed under the Racketeer Influenced and Corrupt Organizations Act in United States District Court. The allegations remain unproven, and the case has not yet been adjudicated. Drake and Stake have not issued public statements regarding the lawsuit as of publication date.
