GME3: Stake Through the Heart, Forecasts from the Crypt(o) & Children of the Ban

In this week’s haunted edition of the GME3, we’re looking at three spooky stories from the gambling, media, and entertainment worlds. First, Stake, alongside sponsored advertising partners Drake and Adin Ross, is facing a lawsuit in Missouri over allegedly promoting illegal online gambling through the platform Stake.us. Next, President Donald Trump’s social media company, Truth Social, announced plans to launch a new prediction betting marketplace. And finally, major social media companies have now pledged to comply with Australia’s under-16 social media ban, which is scheduled to begin in December. Read the full stories below!

Gambling

Stake Through the Heart

A Missouri man, Justin Killham, has filed a lawsuit against rapper Drake, streamer Adin Ross, and Stake’s parent company, Sweepstakes Limited, accusing them of promoting illegal online gambling through the platform Stake.us. The complaint alleges that Stake operates in Missouri under the guise of a “social casino,” despite functioning as a real-money gambling site that violates state gaming and consumer-protection laws.

According to the filing, Stake is accused of using deceptive marketing tactics to target vulnerable consumers – particularly young people and individuals with gambling addictions – by flooding social media with influencer-driven promotions. Drake and Ross are singled out as key promoters, allegedly receiving millions of dollars from Stake to livestream gambling on Stake.com while falsely claiming to use their own money. The lawsuit asserts that these practices constitute “deceptive, fraudulent and unfair” misrepresentations under Missouri law.

Killham also accuses Stake of concealing real-money gambling through its’ dual-token system. Players purchase “Gold Coins,” marketed as having no cash value, but each purchase includes free “Stake Cash,” which can be wagered on casino games and redeemed for U.S. dollars. The complaint argues this setup effectively enables Stake to run an unlicensed casino in Missouri.

Killham is seeking recovery of gambling losses for himself and other affected consumers, alleging widespread harm caused by Stake’s operations and its celebrity endorsements. A Stake spokesperson has responded, stating that the company denies all allegations, has not yet been formally served, and “will vigorously defend this and all such claims.”

Media

Forecasts from the Crypt(o)

Donald Trump’s media company, Trump Media and Technology Group (TMTG), announced plans to launch a new prediction betting marketplace on its social platform Truth Social, allowing users to wager on sports and political events directly through the app. The initiative marks TMTG’s expansion into the booming prediction market industry, which has seen major growth following the 2024 U.S. presidential election.

CEO Devin Nunes said the platform aims to “democratize information” and “turn free speech into actionable foresight,” framing the marketplace as a way for users to leverage collective wisdom in forecasting real-world outcomes. TMTG will partner with Crypto.com to develop the system, with beta testing expected to begin in the near future.

Prediction markets, where users bet against one another on the likelihood of future events rather than against a bookmaker, have become increasingly popular through platforms like Polymarket and Kalshi, both now valued in the billions. However, the industry has drawn scrutiny over concerns about insider knowledge and market manipulation; one recent controversy involved bets that appeared to predict the Nobel Peace Prize winner in advance.

The announcement also reflects the Trump family’s growing involvement in the sector. Donald Trump Jr. recently joined Kalshi as a strategic adviser and invested in Polymarket through his venture firm. Alongside its new betting initiative, TMTG continues to operate Truth Social, the Truth+ streaming platform, and a bitcoin treasury. Trump himself reportedly stands to gain $250 million from the company’s expanding ventures into financial technology and prediction-based services.

Entertainment

Children of the Ban

Meta and TikTok have pledged to comply with Australia’s upcoming under-16 social media ban, though both warned that enforcing the law will be extremely difficult. Starting December 10, platforms including Facebook, Instagram, and TikTok must remove users under the age of 16 or face fines of up to AUD $49.5 million (USD $32 million). The measure is among the strictest in the world and comes amid growing global concern about the impact of social media on youth.

At a Senate hearing Tuesday, TikTok’s Australia policy lead Ella Woods-Joyce said the company would “comply with the law and meet our legislative obligations,” but cautioned that the blanket ban could push minors toward less-regulated corners of the internet. Meta’s policy director, Mia Garlick, echoed those concerns, saying the company was racing to remove hundreds of thousands of underage users but faced “significant new engineering and age assurance challenges.”

Under the legislation, companies are not required to verify every user’s age but must take “reasonable steps” to detect and deactivate underage accounts. Critics, including major tech firms, have described the law as “vague,” “rushed,” and “problematic,” questioning its practicality and potential side effects. YouTube argued that while the intent is to protect children, the ban “does not fulfill its promise of making kids safer online.”

The Australian government is still finalizing key details of enforcement and scope, with regulators suggesting that platforms like WhatsApp, Twitch, and Roblox could also fall under the ban. The law’s rollout will serve as a closely watched test case for other countries considering similar restrictions on youth social media access.