Big Tech, Including Google, Named in New Sweepstakes Casino Lawsuit
Major technology companies, including Google and Apple, have been named in a lawsuit filed in the New Jersey District Court on November 28. The lawsuit accuses them of facilitating, promoting, and profiting from illegal gambling activities by allowing sweepstakes casino games to operate through their respective app stores.
A screenshot of the High 5 Casino sweepstakes casino, available on Google Play and the App Store. (Source: High 5 Casino)
LISTEN TO THIS ARTICLE:The lawsuit specifically targets sweepstakes casino operators: Crowncoins Casino, High 5 Casino, McLuck.com, Wow Vegas,. It also implicates the companies' payment platforms in these alleged operations, highlighting their role in processing transactions tied to unregulated gambling platforms.
Related: Kansas Supreme Court Hears Arguments in Social Casino DebateThe suit alleges that these operators engage in illegal gambling activities under the guise of social casino gaming, a business model that has stirred significant debate. Critics argue these platforms are thinly veiled gambling operations, while proponents insist they are legitimate entertainment platforms operating within legal boundaries.
Central to the lawsuit is the claim that the operators employ a system involving tokens and Sweeps Coins. Users initially receive the token, which have no real-world value, to play casino games, but Sweeps Coins are marketed as redeemable for cash or prizes.
The plaintiffs argue that, in practice, payouts are rare and often denied based on arbitrary or fabricated justifications. Unlike previous lawsuits against sweepstakes casino operators, this case stands out by invoking the federal Racketeer Influenced and Corrupt Organizations (RICO) Act. The plaintiffs allege that the defendants' operations constitute an active criminal enterprise, thereby meeting the criteria for RICO violations.
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The plaintiffs argue that Google and Apple play a direct role in these activities by hosting the sweepstakes casino apps on their platforms and processing payments associated with the games. The companies reportedly collect substantial revenue from these transactions, raising questions about their level of accountability in facilitating the alleged illegal activities. The lawsuit describes these platforms as unregulated entities that lack the oversight required for traditional casinos, allowing operators to sidestep accountability and consumer protections.
Efforts to curb the growth of sweepstakes casinos have been gaining momentum among state lawmakers. The lawsuit comes alongside legislative proposals, such as the Model Internet Gaming Act drafted by the National Council of Legislators from Gaming States.
This proposed framework includes provisions to ban sweepstakes casinos outright. It recommends significant penalties for violators, including fines of as much as $100,000 per offense and potential prison sentences for repeat offenders.
Recent actions by state attorneys general further highlight the mounting pressure on sweepstakes casino operators. Several prominent platforms have received cease-and-desist letters over the past year, signaling increasing scrutiny from regulatory authorities. These developments suggest a growing consensus among lawmakers and regulators that stronger measures are needed to address the perceived risks associated with sweepstakes casinos.
This lawsuit represents a significant legal challenge for Google, Apple, and the implicated operators, as it seeks to hold them accountable for their alleged roles in enabling and profiting from unregulated gambling activities. The case may also set a precedent for how digital platforms are held responsible for the content and activities they host, with potential implications for the broader tech and gaming industries.
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