Judge Keeps Drake's Dismissal Bid Alive in Stake Gambling Lawsuit

Rapper Drake and livestreamer Adin Ross have secured a procedural victory in the ongoing legal battle surrounding the crypto-gambling platform Stake. Chief U.S. District Judge Kenneth J. Gonzales signed a partial-stay order on Friday, November 13, allowing the two celebrities to continue their arguments for dismissal from a lawsuit in New Mexico. While most of the litigation remains frozen due to a related case in Illinois, the question of personal jurisdiction over the high-profile influencers remains active.

Plaintiffs Nathaniel Torres and Rory Michie claim that Stake.us used deceptive promotional tactics to lure them into gambling, citing violations of New Mexico’s Unfair Practices Act. Drake and Ross argue that their online content, accessible to a global audience, does not establish the necessary legal ties to New Mexico required for a lawsuit in that state. This jurisdictional dispute is currently the only segment of the case with momentum, as the judge considers it a priority before proceeding with discovery.

Numbers and facts

The legal proceedings are defined by specific deadlines and strategic pauses. Both sides requested an additional 90-day stay while awaiting a ruling in Urdan v. Sweepsteaks Limited in the Northern District of Illinois. That case will determine if Stake-related claims must be handled via arbitration rather than in open court. The timeline in New Mexico shows active briefing: Drake and Ross filed their motions on September 7, the plaintiffs responded on September 21, and the defendants issued a final reply on October 5.

Judge Gonzales has ordered the parties to submit a new joint report by February 11, 2027, or within 14 days of a ruling in the Urdan case, whichever comes first. This report must address whether the stay should be fully lifted. Meanwhile, the plaintiffs are seeking to uncover internal data, including Drake’s Stake payments and records showing if New Mexico residents used his specific referral links or promo codes. Such evidence could potentially establish the jurisdiction the defendants are currently disputing.

Background

Stake is one of the world's largest cryptocurrency gambling operators, but it often operates in markets without local licensing. Drake has been the platform's most prominent ambassador for years, frequently streaming high-stakes sessions and sharing his betting slips with millions of followers. Adin Ross similarly built a massive audience through livestreams closely associated with the site. These public ties are the primary reason both names were included in the complaint, as plaintiffs seek to hold influencers accountable for the platform's reach.

„There has not yet been a ruling on the pending motion to compel arbitration in Urdan.“ - Joint status report from legal counsel, Filed in District Court

Why it matters for German players

For players in Germany, this case serves as a stark reminder of the risks associated with unregulated gambling. Stake does not hold a license from the Gemeinsame Glücksspielbehörde der Länder (GGL) to offer online slots or sports betting in Germany. Engaging with such platforms, even when promoted by global icons like Drake, constitutes participation in illegal gambling under German law. The State Treaty on Gambling 2021 (GlüStV 2021) establishes strict protection measures, such as the 1,000 Euro monthly deposit limit via the LUGAS system and a 1 Euro maximum spin limit for virtual slots.

Unregulated sites often bypass these safety nets using cryptocurrency and lack connection to the national OASIS lockout system. Players using these sites have no legal protection from German authorities. In the event of payment disputes, recovery is nearly impossible as these operators are typically based in offshore jurisdictions like Curacao. The GGL actively monitors and penalizes influencer marketing for illegal offers, but the borderless nature of social media remains a challenge for enforcement. German residents should always consult the official GGL whitelist to ensure they are playing with a legal and regulated provider.

What it means for GGL-licensed casinos

Legally operating casinos in Germany must adhere to rigorous advertising standards. Celebrity partners are prohibited from suggesting that gambling is a solution to financial problems or that it involves significant skill. The Drake case demonstrates that even global stars can face personal legal liability when promoting unregulated services. For GGL-licensed operators, this reinforces the importance of their compliance-first approach to marketing. While offshore sites use massive budgets and aggressive celebrity endorsements, German providers prioritize legal certainty and player safety to ensure long-term stability in a regulated environment.