Offset Misses Deadline in Casino Debt Lawsuit, May Receive Default Judgment
Rapper Offset is moving closer to a default judgment in a six-figure lawsuit filed by MotorCity Casino Hotel over an alleged unpaid gambling debt from earlier this year.
According to court filings, Wayne County Circuit Court Judge Qiana Denise Lillard has ordered Detroit Entertainment, L.L.C., the operating entity of the Detroit resort and casino, to file a motion for default judgment after Offset, whose legal name is Kiari Cephus, failed to respond to the complaint by the required deadline. The judge found that Offset received proper notice but never answered the lawsuit. The motion is scheduled to be heard no later than Oct. 23.
The Casino Marker and Alleged Default
The lawsuit, filed on March 30, 2024, stems from a casino marker signed by Offset on March 19, 2024, establishing a $100,000 line of credit. Casino markers in Michigan function as short-term, interest-free loans that legally operate similar to checks under state gaming regulations. The marker was tied to Offset's personal checking account at Wells Fargo, authorizing the casino to draw the full amount directly from that account on demand.
When MotorCity Casino Hotel attempted to collect payment, the transaction was returned marked insufficient funds. Comerica's processing records show the $100,000 chargeback was recorded on April 25, 2024. The casino alleges it has been unsuccessful in subsequent efforts to contact Offset or withdraw the money from his account.
The complaint includes allegations of breach of contract, fraud, and violating Michigan's bad-check law. Under state law, the casino can seek double damages and legal fees, potentially bringing the total judgment to $200,000. MotorCity Casino Hotel is the only locally-owned and operated commercial casino in Detroit, owned by Marian Ilitch, who also owns the Detroit Red Wings and Detroit Tigers.
After news of the lawsuit surfaced in April, a spokesperson for Offset said they are "working towards a resolution." However, no settlement has been reached and the case continues to advance toward default judgment.
Mounting Financial Challenges
The casino debt lawsuit represents just one piece of Offset's mounting financial challenges. The IRS filed a new federal tax lien against the rapper on October 15, 2024, for $486,426.35 in unpaid taxes for 2023. Combined with previous federal tax liens totaling more than $2 million for 2023 and 2022, Offset now owes $2,353,692 in federal tax debt.
State tax issues add to the burden. The Georgia Department of Revenue filed a lien on March 12, 2024, showing that an original tax bill of $167,916 ballooned to just under $292,000 after accumulating $53,000 in interest, $40,000 in penalties, $33,000 in collection fees, and other costs over five years.
Beyond tax and casino debts, other creditors have also claimed Offset owes them money. Lil Tjay and former NFL player Dez Bryant have publicly stated the rapper owes them a combined $18,000.
