Top 3 Gambling Lawsuits That Rocked Live Streaming and Influencer Culture
Gambling streams continue to rise in popularity, with influencers earning millions while betting huge amounts on camera. But here’s the thing: when the house always wins and your favorite streamer never seems to lose, something’s probably up. From secret site ownership to fake money bets, the world of online gambling has been rocked by some massive scandals and lawsuits that have exposed just how shady things can get behind the scenes.
Let’s dive into three massive lawsuits that changed the game (literally) and showed us that not everything is as it seems when it comes to Twitch gambling streamers, online casino promos, and those “lucky” influencer wins.
Drake and Adin Ross Hit With Class Action Over Stake Gambling Streams
The biggest and most recent bombshell? A class action lawsuit filed in Missouri in October 2025 names Drake, streamer Adin Ross, and the crypto casino Stake for allegedly promoting illegal gambling through deceptive practices.
The lawsuit claims that when Drake and Adin Ross were doing those marathon gambling streams on Kick (Stake’s streaming platform), they weren’t actually betting their own money; Stake was giving them “house money” to make it look like they were making these insane personal bets. So all those times Drake was casually dropping millions? Yeah, allegedly not his own cash.
The 34-page complaint accuses the trio of using “deeply fraudulent pretenses” to advertise Stake and mislead impressionable viewers, particularly targeting young audiences who see Drake’s lifestyle as aspirational. The lawsuit even coined a term for it: the “Drake Effect,” where Drake’s public wagering massively boosts Stake’s popularity, especially among younger audiences.
The suit alleges that Stake.us operates as a “social casino” using a dual-currency system to get around gambling laws in states like Missouri, where online gambling is illegal. Users buy “Gold Coins” (supposedly no real value) but can use “Stake Cash” that’s actually redeemable for real money. Sneaky, right?
This isn’t even the only lawsuit; a second one was filed in New Mexico just days later, and seven other states have sued Stake on similar grounds in 2025. Both Drake and Adin Ross are facing some serious heat, with the lawsuits seeking damages, disgorgement of profits, and injunctive relief.
The PhantomL0rd Saga: CS:GO Skin Gambling and the Twitch Lawsuit
Watch Richard Lewis exposing PhantomL0rd on YouTube
Before Drake was streaming Stake, there was PhantomL0rd and the wild world of CS:GO skin gambling. Back in 2016, streamer James “PhantomL0rd” Varga was absolutely massive on Twitch, pulling in record-breaking viewer numbers with his Counter-Strike: Global Offensive gambling streams.
But then things got messy. Investigative journalist Richard Lewis exposed that PhantomL0rd secretly owned CSGOShuffle, a skin gambling site he was actively promoting and betting on during his streams, without ever telling his viewers he was the owner. There were also allegations that he rigged bets in his favor to make it look like viewers could win big on the site.
Twitch permanently banned him in July 2016 during their crackdown on CSGO gambling streams, citing violations of terms of service. But here’s where PhantomL0rd fought back; he sued Twitch in 2018, claiming they never gave him a proper explanation for the ban and violated their contract with him.
After a lengthy legal battle, PhantomL0rd won his lawsuit against Twitch in April 2021, with the jury ruling in his favor on all counts. However, instead of the $35 million he initially sought, he was only awarded about $20,720 in damages.
Ethan Klein Exposes CSGO Lotto: When Influencers Own the Casino
Watch Ethan Klein exposing CSGO Lotto on YouTube
This one’s a classic. In 2016, YouTubers Trevor “TmarTn” Martin and Thomas “ProSyndicate” Cassell were living the dream, posting videos of themselves hitting huge wins on a CS:GO skin gambling site called CSGO Lotto. Their combined 10+ million subscribers watched them celebrate “lucky” streaks and massive payouts.
Then YouTubers HonorTheCall and Ethan Klein (h3h3Productions) did some detective work and exposed the whole operation. Turns out, TmarTn was the President of CSGO Lotto, and ProSyndicate was the Vice President. They owned the entire company and never disclosed it to their audiences.
Think about that for a second. They owned the gambling site, had access to the backend, promoted it like they just “discovered” this awesome new site, and never mentioned they were literally the owners profiting from every bet placed. They also allegedly paid other influencers between $2,500 and $55,000 to promote CSGO Lotto on YouTube, Twitch, Twitter, and Facebook without requiring them to disclose the payments.
The backlash was immediate and brutal. The Federal Trade Commission got involved, marking the first-ever FTC complaint against individual social media influencers. In September 2017, TmarTn and ProSyndicate settled with the FTC, agreeing to clearly disclose any material connections to products they promote in the future.
The funny thing is, though, the settlement didn’t include any financial penalties, just a requirement to disclose properly going forward. Many felt they got off way too easy considering they’d made millions from the scheme, but the case did establish important guidelines for influencer marketing transparency.
The Bigger Picture: What This Means for You
These three cases show a disturbing pattern: influencers and streamers promoting gambling without proper disclosure, using fake money to simulate “wins,” and targeting impressionable young audiences who don’t understand the risks.
The lawsuits against Drake and Adin Ross are still ongoing, but they could reshape how gambling streams are regulated and whether influencers can be held personally liable for promoting potentially illegal gambling operations. PhantomL0rd’s victory, while small financially, proved that platforms need accountability in their banning decisions. And the CSGO Lotto scandal led to the first FTC action against influencers, setting standards for disclosure that still apply today.
The bottom line? Be extremely skeptical of gambling streams and influencer promo codes.
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