A new class action lawsuit in New Jersey, filed on November 27, targets tech giants Google and Apple along with sweepstakes and casino operators for having a role in the distribution of illegal gambling.
New Jersey resident Julian Bargo claimed in his complaint that he had lost more than $1,000 across a range of sweepstakes casinos. High 5 Casino, McLuck, Wow Vegas, and CrownCoins Casino are all named as defendants in the case for allegedly offering an illegal gambling site.
However, Apple, Apple Pay, Google, and Google Pay are also named in the suit, with Bargo bringing Racketeer Influenced and Corrupt Organizations (RICO) Act charges for enabling and supporting the existence of these sweepstakes casinos. RICO charges are typically reserved for organized crime but Bargo’s complaint reasoned they are applicable in this case.
The suit claims Apple and Google illegally profit off sweeps casino activity. With the Google and Apple stores receiving a cut from profits of apps housed in their stores, including these social casinos, and because they offer their payment methods within these sweepstakes sites, the suit argues they are complicit in the wrongdoing.
Like similar class actions, Bargo says sweepstakes casinos are masquerading as social casinos but actually are unregulated casinos with no oversight. The complaint includes several pieces of marketing highlighting what the plaintiff claims are misleading promotions intended to deceive patrons into believing these sites are free to play.
Sweepstakes and social casinos are unregulated and do not require licensing. However, there are some regulators, such as in Michigan and Ohio, that have taken a hard stance on social casinos and other forms of unregulated gambling and sent several effective cease and desist letters to sweepstakes operators like those named in the suit.
This is the first suit to name Google and Apple as co-defendants but not the first sweepstakes suit to bring in payment processors as defendants. A similar lawsuit against VGW filed in Florida has named Worldpay as a co-defendant.
Social casinos allow users to play for free or to spend money on virtual currency. The virtual currency can then unlock features in games often associated with gambling, such as slot machines, blackjack, and roulette. Some social casinos have gone further to add sweepstakes components, such as real-money prizing.
While these platforms are popular for their accessibility and entertainment value, and seemingly comply with current applicable laws although they vary by state, critics argue that they essentially turn smartphones into unregulated gambling devices.
Unlike traditional casinos, sweepstakes operators are not licensed or regulated in the US. As such, they avoid paying gaming taxes, despite primarily targeting American consumers. In addition, most of the major sweepstakes casino operators are based offshore.
Original article: https://www.yogonet.com/international/news/2024/12/03/87352-google-and-apple-named-in-rico-sweepstakes-casino-lawsuit-as-codefendants
