A New Jersey man has gone to court with a wide-ranging class action that takes aim at a major online gaming site and several well-known entertainers, accusing them of running what he describes as an illegal gambling operation with ties to music streaming manipulation.
The case, filed in Monmouth County Superior Court, focuses on Sweepsteaks Ltd., the company behind Stake.us. The plaintiff, Jason Nufio, argues the site presents itself as a “social casino” while actually operating like a real-money gambling platform that New Jersey users are not supposed to access.
This consumer class action seeks to stop Stake.us—an illegal online gambling platform…from continuing to prey upon consumers,” the complaint states.
Nufio says he ended up spending money after seeing promotions featuring big names like Drake, Adin Ross, and DJ Akademiks. The lawsuit also names Kick Streaming Pty Ltd., describing it as a key channel used to showcase the platform.
“Gold Coins” system at the center of the dispute
At the center of the dispute is how the site handles money. Users buy virtual “Gold Coins,” which come with “Stake Cash” that can be redeemed for real-world value. The complaint claims that the setup is meant to sidestep gambling restrictions while still letting users wager and cash out.
“Thus, the use of Gold Coins is a blatant proxy for the use of real money—a fig leaf to superficially avoid the appearance of illegal gambling,” the filing states.
Allegations of manipulated outcomes are challenged
According to the lawsuit, livestreams played a major role in attracting users. It claims Drake and Adin Ross streamed themselves gambling with funds quietly supplied by the company, giving viewers the impression they were risking their own money.
This deceptive arrangement concealed the fact that Drake and Ross faced no genuine financial risk,” the complaint says, “while ordinary consumers…stood to lose real money.”
The filing goes further, alleging that outcomes were manipulated in some cases. “Stake has outright rigged its own games in favor of Drake and Ross,” it alleges.
Including information from Bloomberg Businessweek in the lawsuit is a notable wrinkle, as separate reporting highlighted by PokerScout has pushed back on claims that high-profile wins on the platform prove rigging, arguing that streaks can be explained without manipulation.
Music streaming manipulation and alleged financial networks
The lawsuit also branches into music, claiming gambling proceeds were funneled through an internal tipping system to finance bot networks that inflate streaming numbers. At the center of that accusation, the filing states: “Drake—acting directly and through…co-conspirators—has deployed automated bots and streaming farms to artificially inflate play counts of his music.”
It describes the tipping system as opaque and difficult to track, calling it “an unlimited and wholly unregulated money transmitter” that “appears to exist outside the oversight of any financial regulator.”
The claims arrive as similar scrutiny grows elsewhere. A separate lawsuit filed in New York has raised concerns about underage access to gambling-style platforms, naming both Stake and Coinbase in allegations that minors were able to participate.
Plaintiff’s claims and legal relief sought
Nufio says he would have stayed away entirely if he had known what he now alleges. “Had Plaintiff known…he would not have signed up for an account or spent money on the platform,” the complaint states.
The suit seeks damages, restitution, injunctive relief, and enhanced penalties under New Jersey racketeering law. It also challenges the platform’s arbitration clause and class action waiver. None of the defendants has responded to the allegations in court so far.
Featured image: Wesley Tingey/Unsplash
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