Apple and Google are currently facing a class action lawsuit that alleges they were involved in assisting sweepstakes casinos in offering illegal gambling to individuals in the United States. The lawsuit claims that these casinos offer free-to-play games with the potential to win real-money prizes, which some argue constitutes unlicensed gambling. This issue has garnered attention from gaming tribes, who are pushing back against these platforms, and the National Council of Legislators from Gaming States has even proposed a ban on them.
The lawsuit, filed in New Jersey, accuses Apple and Google of aiding sweepstakes casinos in providing illegal gambling opportunities by allowing users to download their apps from the respective app stores. Both companies profit from a percentage of the in-app earnings generated by these platforms. In addition to Apple and Google, the complaint also names operators such as McLuck, CrownCoins Casino, WOW Vegas, and High Casino as defendants. The plaintiffs are seeking injunctive relief and the recovery of funds lost through these sweepstakes platforms.
Although players do not need to deposit real money into their accounts on these sweepstakes casinos, they have the option to purchase virtual coins to enhance their gaming experience. These virtual coins, known as Sweeps Coins, can often be exchanged for real money once a minimum threshold has been reached. However, the lawsuit alleges that operators frequently fail to pay out these prizes, citing arbitrary and contrived reasons for withholding winnings. The complaint argues that the defendants’ actions constitute a violation of the RICO Act, suggesting that they are part of a criminal enterprise.
Overall, the class action lawsuit against Apple and Google highlights the ongoing debate surrounding the legality of sweepstakes casinos and their offering of free-to-play games with real-money prizes. The outcome of this case could have significant implications for the future regulation of these platforms and the broader online gambling industry.