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A new lawsuit has been filed against tech giants Google and Apple, alleging their involvement in the distribution of illegal gambling software across New Jersey and other states in the United States. The lawsuit, filed on November 27, 2024, targets Apple and Google's involvement in hosting casino and sweepstakes apps, a growing industry embroiled in controversy due to strange operating models and regulatory variations.
Manipulative practices and unlawful enterprise
The legal documents assert that these platforms engage users with "Game Coins" for play and offer "Sweeps Coins", which are allegedly redeemable for cash and prizes but frequently withhold payouts based on arbitrary reasons. The primary complainant, Julian Bargo, alleges that his financial wellbeing has been severely impacted by the exploitative methods used by these sweepstakes casinos. This particular case is noteworthy for its reliance on the federal RICO Act (Racketeer Influenced and Corrupt Organisations), alleging that Google and Apple are operating in conjunction with a long-standing criminal syndicate.
The lawsuit has brought attention to lawmakers' initiative to introduce regulations on online sweepstakes gaming via the Model Internet Gaming Act. In contrast, industry leaders like Australia-based Virtual Gaming Worlds have thrived in this market.
Revenue figures and sponsorships
With net earnings totalling £254 million in 2023, as per information provided by iGaming Business, Virtual Gaming Worlds was able to invest in prestigious sponsorship opportunities and team up with influential celebrities for promotional purposes. Platforms that offer sweepstakes casinos have achieved impressive financial gains, highlighting the high stakes at play economically. While critics argue that social casinos essentially turn smartphones into unregulated gambling devices, most platforms appear to operate within current applicable laws, which vary by state.
Unlike traditional brick-and-mortar casinos, sweepstakes operators successfully evade paying gaming taxes and often establish their operations in jurisdictions outside of the country. This legal action has brought into focus the role that prominent tech corporations play in allowing and potentially profiting from the operations of these unregulated gaming platforms.
