The complaint accuses Google and Apple of playing a part in the spread of unlawful gaming.
Google and Apple are facing new legal challenges in New Jersey. The two are mentioned in a lawsuit accusing them of breaching the Racketeer Influenced and Corrupt Organizations (RICO) Act. The action, filed on November 27, targets their role in hosting sweepstakes gambling apps, a booming industry that has sparked major controversy due to its unique operating model and regulatory difficulties.
Julian Bargo, the principal plaintiff, argues that he lost more than $1,000 at sweepstakes casinos. Apple and Google are two of the five identified defendants.
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Social casinos allow players to play for free or pay with virtual cash. The virtual cash can then be used to unlock features in popular gambling games like slot machines, blackjack, and roulette. Some social casinos have gone so far as to include sweepstakes components, such as real-money prizes.
While these platforms are popular for their accessibility and entertainment value, and appear to comply with existing applicable regulations, though they differ by state, detractors contend that they effectively transform cellphones into unregulated gambling machines.
Unlike traditional casinos, sweepstakes operators are neither licensed or regulated in the United States. As a result, they avoid paying gaming taxes despite primarily targeting American consumers. Furthermore, the majority of the main sweepstakes casino operators are headquartered offshore.
Virtual Gaming Worlds (VGW), established in Australia, operates Chumba Casino, LuckyLand Slots, and Global Poker, exemplifying the industry’s success. In 2023, it recorded $4 billion (£3.7 billion/€3.8 billion) in revenue, with $322 million in net profitability.
According to The Washington Post, its financial success has enabled it to sponsor Ferrari’s Formula One team and work with high-profile celebrities to promote its platforms, including Ryan Seacrest, Michael Phelps, and DJ Khaled.
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