The Dual-Currency System Under Fire
At the center of the case is Stake.us’ alleged dual-currency model. The Virginia lawsuit, echoing a similar case filed in Missouri, claims the platform bundles virtual “gold coins” with a second token known as Stake Cash, which can be redeemed for real money.
Critics have long argued that such systems exploit regulatory gray areas. Lawmakers have taken notice: California Gov. Gavin Newsom signed legislation last year aimed at curbing similar practices, underscoring the growing scrutiny surrounding online sweepstakes-style casinos.
Alleged Money Transfers and Promotion Network
According to the complaint, Drake, Ross, and Australian national George Nguyen acted as enthusiastic promoters of Stake in exchange for payment and privileged access to the platform. The lawsuit characterizes Stake as a covert “money transfer conduit,” alleging its user-to-user tipping feature enabled direct transfers among the defendants.
The filing describes the tipping system as an unregulated money transmitter operating outside the oversight of financial regulators. Stake, owned by Sweepsteaks Ltd. in Cyprus and operated from offices in Dallas, did not immediately respond to requests for comment. Ross and Nguyen also did not respond, while a representative for Drake declined to comment.
