Promoting and Profiting from Illegal Gambling
Apple and Google offer players access to apps for gaming sites in their respective App Stores. This includes apps for brands like High 5 Casino and McLuck. The New Jersey filing states that both companies have assisted in illegal gambling activities by promoting the services and profiting from the ill-gotten gains.
This recent filing is similar to other class action lawsuits that have moved through state and federal courts across the United States. The goal is to stop the operators from offering ‘illegal gambling’ and recoup the money players spend to purchase more Gold Coins or their equivalent.
The Complaint
While supporters of the sweepstakes casinos say they are just another form of social gaming, those opposed state the brands are conducting illegal gambling activities. In the NJ complaint, it says that illegal gambling software is being distributed via desktops and cell phones to players in the state and beyond by ‘unlawful enterprises’.
The filing alleges that the companies rarely pay out winnings due to ‘arbitrary and largely contrived reasons’. The main plaintiff in the case is Julian Bargo, who says they lost over $1,000 at the sweepstakes platforms.
The plaintiffs allege that the defendants in the case are in violation of the RICO Act, which allows individuals to file a civil suit based on actions performed by a criminal organization.
A First for Google and Apple
This is the first time Google and Apple have successfully been added as plaintiffs in a sweepstakes gaming lawsuit. The filing states that the companies are processing illegal payments via the Google Play and Apple App Store.
They are also accused of receiving a large portion of the proceeds from the illegal activity. The complaint states that the Gaming Defendants are not licensed casinos and are not regulated by an overseer like a traditional casino. No one is ensuring that the ‘digital dice aren’t loaded’.
On top of this recent lawsuit aiming major fire at the sweepstakes brand, the industry also faces drafted legislation via the Model Internet Gaming Act. This legislation was created by the National Council of Legislators from Gaming States and seeks to provide a framework for iGaming regulation.
The Act includes banning sweepstakes casinos with large financial penalties and possible prison time for repeat offenders.
