Google and Apple Named in Sweepstakes Casino Lawsuit
Julia Cooper • Last updated on 20 December 2024
A New Jersey resident has named Google and Apple in a class action lawsuit. According to reports, it is a Racketeer Influenced and Corrupt Organizations (RICO) case. The accuser, Julian Bargo, claims they have broken the RICO Act.
How did Google and Apple break the law? Bargo says they permit illegal sweepstakes apps on their software. When you hear RICO, you think it’s an organized crime. Although this isn’t organized crime, Bargo claims it applies to the lawsuit.
This is the first lawsuit to bring Apple and Google as co-defendants. However, the major defendants are the sweepstakes casinos.
Sweepstakes Casinos — What They Do
Sweepstakes are online platforms that offer free gambling. They require no deposits. The “no-deposit” clause allows sweepstakes operations in states where real-money online gambling is illegal. They also function in online gambling-friendly states like New Jersey.
They give players free daily tokens to bet. However, they don’t last. Players are then convinced to buy virtual currencies to prolong gaming periods. These currencies are known as sweeps or gold coins. Bargo claims to have lost over $1,000 from buying sweeps.
Bargo’s loss is spread across four sweepstakes sites: CrownCoins, High 5, McLuck, and WOW Vegas. These platforms operate legally in New Jersey, but Bargo accuses them of fraudulent and illegal operations.
Overview of The Lawsuit
Under the RICO Act, there are two elements for a trial. First is the enterprise, which in this case is Google and Apple. Second is a pattern of racketeering activity by the enterprise.
According to The Act, an enterprise is “any individual, partnership, corporation, association, or other legal entity, and any union or group of individuals associated, although not a legal entity.” In reference to the racketeering activity, Bargo points out how these tech companies receive a share of profits generated from these sweepstakes apps housed in their stores (Google Play and App). Another point the plaintiff makes is that Apple Pay and Google Pay are payment options on these sites. This complicates both companies’ wrongdoing in the sweepstakes.
Bargo claims that sweepstakes impersonate social casinos. However, they are unregulated and have no oversight from the state. In his words, “The Gaming Defendants have succeeded in misleading regulators about the true nature of their operations for far too long.” Bargo also presents details from misleading promotions. An example is the platforms trying to convince people that gaming is free.
Final Thoughts: What Does This Mean Sweepstakes’ Future
At the moment, things are not looking favorable for sweepstakes. In May, the AGA sent letters to the gaming commissions and attorneys general offices in every state, encouraging them to investigate these platforms. Several states have already shut down some websites.
Now, it’s a lawsuit that has dragged tech giants as defendants. If this trend continues, sweepstakes might be forced to shut down. Therefore, their operations balance on the suit’s verdict. The coming months could decide the fate of the industry.
Sources:
- “Apple, Google get hit with RICO lawsuit over sweepstakes in New Jersey” https://igamingbusiness.com/casino-games/social-gaming/sweepstakes-apple-google-lawsuit-new-jersey/. iGamingBusiness. December 2, 2024.
- “Google and Apple face lawsuit over illegal gambling apps” https://affpapa.com/google-and-apple-face-lawsuit-over-illegal-gambling-apps/. affpapa.com. December 3, 2024.
