Apple and Google Sued for Promoting Illegal Gambling Apps

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Apple and Google are being sued in a New Jersey court for allegedly hosting sweepstakes casino games from operators like High 5 Casino, Wow Vegas, Crowncoins Casino, and McLuck.com.

The lawsuit argues that their actions violate the federal RICO Act, designed to tackle organized crime, by profiting from illegal gambling.

The proposed Model Internet Gaming Act aims to impose fines of up to $100,000 per violation and ban these apps altogether.

The complaint said:

This case is about patently illegal gambling software being distributed to the cell phones, desktop computers and other personal electronic devices of individuals throughout New Jersey and beyond, by an unlawful enterprise that includes two of the most successful corporations in the world.

The complaint explains the typical sweepstakes structure, where players receive “Game Coins” to participate in casino-style games, with “Sweeps Coins”, which are said to be exchangeable for cash and rewards.

The lawsuit claims that the payouts through these platforms are rarely honored, with attributing this to “arbitrary and largely artificial justifications.”

The lead plaintiff, Julian Bargo, is said to have lost “well over” $1,000 on these sweepstakes casino sites.

Attorneys claim the defendants violated the federal RICO Act, which allows civil lawsuits for activities conducted as part of an organized criminal activity. And this lawsuit includes Google and Apple as defendants.

Apple and Google facilitated unauthorized payments​

According to the lawsuit, Apple’s App Store and Google’s Play Store are enabling illegal payments between parties, and they profit from the proceeds significantly.

The complaint continued:

The Gaming Defendants have succeeded in misleading regulators about the true nature of their operations for far too long.

These Defendants are not licensed casinos. They are not regulated by any casino regulator as a traditional casino would be. No one is looking over anyone’s shoulder to ensure that the digital dice aren’t loaded.

And the Gaming Defendants have, thus far, managed to entirely insulate themselves from civil liability by hiding behind an iron curtain of bizarre arbitration agreements, many of which require arbitration in far flung locales like Malta, the Isle of Man, etc.

State legislators are advocating for a ban on sweepstakes casinos through the “Model Internet Gaming Act”. The National Council of Legislators from Gaming States drafted the proposal to guide states in regulating and legalizing iGaming.

The proposal includes fines of $10,000 to $100,000 per offense and prison sentences of up to two years for repeat violations. And this follows actions by state attorneys general, who have sent cease-and-desist notices to major sweepstakes casino operators in the past year.