Apple & Google Face Anti-Sweepstakes Casino Lawsuit

Apple and Google have been accused of facilitating illegal gambling practices as part of a new RICO federal class action lawsuit. The suit alleges that the tech giants targeted vulnerable customers through “predatory sweepstakes casinos” games as a means of financial gain.

The plaintiffs, Julian Bargo, Lamar Prater and Rebecca Pratt, claim that both companies used targeted advertising driven by search algorithms to drive users to sweepstakes casinos, whose operations tend to fall into a legal gray area. Furthermore, they allege that Apple and Google actively promoted this activity by distributing its content via their apps.

Notably, this case is a re-filing of two prior federal cases that had been dismissed without prejudice. The main difference is this time, instead of targeting the sweepstakes casino operators themselves, the plaintiffs are setting their sights on the companies that they believe put everything into motion.

The suit reads: “This case is about patently illegal gambling software being distributed to the cell phones, desktop computers and other personal electronic devices of individuals throughout New Jersey, New York and beyond, by an unlawful enterprise that includes two of the most successful companies in the world.

“The Defendants promote, distribute, facilitate and materially participate in an interstate gambling enterprise using software developed by a dozen or so Sweepstakes Casinos.”

Sweepstakes gaming allows users to play online slots, table games and more using free coins, which in turn, can be purchased using real money. While play has grown in popularity, lawmakers in several U.S. states have sought to crack down on their operations.

The New York Senate Racing, Gaming, and Wagering Committee, which oversees the country’s largest sports betting market, is pushing a bill that would ban online sweepstakes gaming, specifically targeting those that simulate casino-style entertainment, including poker, slots, and sports betting.

The proposal calls for harsh penalties, including fines up to $100,000 and loss of licensing.

Maryland is seeking to take similar action against online sweepstakes gaming. Bills have also been filed in Connecticut, Florida, Mississippi, and New Jersey.

Plaintiffs in the suit against Apple and Google are seeking “to recover money lost to illegal gambling, for injunctive relief, and for other appropriate relief,” including on games such as Wow Vegas, CrownCoins Casino, McLuck, and Chumba Casino.

Also mentioned in the suit is High5Games, whose license was recently suspended in Connecticut. An investigation by the state’s Department of Consumer Protection Gaming Division found that High5Games had deceived over 1,000 Connecticut customers into playing unlicensed online casino games.