Tech Giants Facing Sweepstake Casino Lawsuit
A class action lawsuit, seeking compensation for money lost, has been filed naming two leading tech companies and several sweepstakes operators as defendants in a case alleging their involvement in illegal online gambling.
LISTEN TO THIS ARTICLE:Gaming attorney Daniel Wallach confirmed that Julian Bargo, the plaintiff in the case, filed the lawsuit last month and included Apple and Google alongside four sweepstakes operators, CrownCoins Casino, High 5 Casino, WOW Vegas, and McLuck.
Companies Accused of Profiting from Illegal Gambling
The lawsuit, which invokes the Racketeer Influenced and Corrupt Organizations (RICO) Act, accuses Apple and Google of facilitating and profiting from the promotion of these sweepstakes platforms. It alleges that the operators falsely present themselves as “social casinos,” claiming their games are purely for entertainment. However, the complaint argues that these platforms constitute “unauthorized, unlawful interstate gambling enterprises.” The suit seeks an injunction and aims to recover financial losses attributed to these operations.
The lawsuit further contends that Apple and Google distributed the sweepstakes operators’ apps through their respective platforms, the App Store and Google Play Store. The platforms also allegedly enabled users to make payments via Apple Pay and Google Pay, furthering their involvement in the operators’ activities.
The promotion and distribution of the Gaming Defendants’ apps through Google’s Play Store and Apple’s App Store to users of Android and iOS devices, respectively, is crucial to the furtherance of Defendants’ illicit, interstate gambling scheme.
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Dishonest Practices and Regulatory Loopholes
The lawsuit claims that the sweepstakes operators hid the true nature of their activities, successfully misleading gambling regulators. According to Bargo, the operators are unlicensed and therefore not subject to regulatory oversight, unlike traditional casinos.
The legal complaint describes how the platforms convert from what they claim to be “social casinos” into operations offering real-money games, ultimately creating an illegal gambling experience. Players are enticed to purchase Game Coins, allegedly under the pretense of entertainment, only to use them to win Sweeps Coins, which can translate into monetary rewards.
Filed in the New Jersey District Court, the lawsuit calls for a jury trial. It is the latest in a series of legal challenges targeting sweepstakes operators as the sector finds itself under growing scrutiny from both lawmakers and the licensed gambling sector.
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