Apple and Google are targets in a suit tied to sweepstakes casinos
Plaintiffs Launch New Federal Class Action Against Tech Giants Over Alleged Facilitation of Illegal Gambling Following RICO Suit Withdrawal
Recent developments in the realm of online gambling have taken a surprising turn. Just days after plaintiffs in a New Jersey lawsuit withdrew their case against four sweepstakes casino operators, they have now initiated a federal class action suit against prominent tech corporations—Apple and Google—alleging their complicity in facilitating “illegal” gambling activities.
This new legal action, filed in the United States District Court of New Jersey, features plaintiffs Julian Bargo from New Jersey, Lamar Prater from New York, and Rebecca Platt, also from New York. Unlike the previous suit, no sweepstakes operators are currently named as defendants, which leaves a glimmer of possibility for these operators given the shift in focus onto the tech giants.
The plaintiffs are seeking to recoup losses incurred from what they characterize as illegal gambling activities. They are also pursuing injunctive relief against Apple and Google, claiming that these companies materially participate in an illegal interstate gambling operation by enabling access to casino applications and facilitating financial transactions tied to these platforms.
Comparison of the New Suit to the Withdrawn Case
This federal class action, filed under the Racketeer Influenced and Corrupt Organizations (RICO) Act, bears striking similarities to the recently withdrawn complaint, with the primary distinction being the absence of specific sweepstakes casino operators as defendants. In the initial lawsuit, the operators—namely High 5 Casino, McLuck, Wow Vegas, and CrownCoins Casino—were directly implicated.
The new complaint postulates that Apple and Google bear significant responsibility for their roles in the distribution of sweepstakes casino applications. The plaintiffs accuse the tech giants of not only providing a platform for these apps but also receiving a percentage of in-app purchases and offering payment processing services that further enable the alleged illegal operations. Additionally, the complaint highlights concerns regarding targeted marketing strategies employed by these companies, designed to attract vulnerable consumers.
This unfolding legal situation exemplifies the ongoing debate surrounding the legality of sweepstakes casinos within the United States, where regulatory frameworks remain ambiguous. As the gambling industry continues to evolve, these legal challenges underscore the complexities at the intersection of technology and gaming.
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