Apple and Google Face RICO Class Action Over Sweepstakes

Apple and Google are in the spotlight, facing accusations of enabling illegal gambling through sweepstakes apps.
A federal RICO lawsuit alleges the tech giants facilitated payments for casino-style games disguised as “social casinos.”
The lawsuit seeks to recover losses, claiming the platforms exploited players and bypassed regulatory oversight.
Learn how this case could reshape sweepstakes casinos and the role of tech giants in online gambling.

Apple and Google Accused of Enabling Illegal Sweepstakes Gambling in RICO Lawsuit

Key Points

1. Apple and Google face a RICO lawsuit for profiting from sweepstakes casino apps accused of illegal gambling.
2. The case targets popular platforms like High 5 Casino, Wow Vegas, CrownCoins Casino, and McLuck.com.
3. Plaintiffs claim the apps mislead regulators and rarely pay winnings, violating federal and state laws.

Apple and Google have been named in a groundbreaking RICO class action lawsuit filed in New Jersey federal court. The lawsuit accuses the tech giants of facilitating and profiting from illegal gambling through their app stores. The case also targets popular sweepstakes casinos, including High 5 Casino, Wow Vegas, CrownCoins Casino, and McLuck.com, alleging these platforms operate as unregulated gambling enterprises.

The Allegations Against Tech Giants and Sweepstakes Operators

The complaint alleges that Apple’s App Store and Google’s Play Store serve as key platforms for distributing illegal gambling apps disguised as sweepstakes casinos. Users of these apps engage in casino-style games using “Game Coins” and “Sweeps Coins.” While Game Coins are used for gameplay, Sweeps Coins can supposedly be redeemed for cash and prizes.

However, the lawsuit claims the companies rarely honor payouts, often citing arbitrary reasons to deny redemption requests. These practices, according to the plaintiffs, constitute deceptive and illegal gambling operations.

“This case is about patently illegal gambling software being distributed… by an unlawful enterprise,” the complaint states.

The lead plaintiff, Julian Bargo, alleges he lost “well over” $1,000 on these platforms. The lawsuit also accuses Apple and Google of processing payments for these apps and taking a share of the proceeds, further implicating them in the alleged illegal activities.

RICO Act Violations and the Class Action Context

What sets this lawsuit apart is its reliance on the RICO Act (Racketeer Influenced and Corrupt Organizations Act). The plaintiffs claim the defendants engaged in a coordinated effort akin to an organized crime enterprise to profit from unregulated gambling.

The complaint highlights:

• A lack of regulatory oversight for sweepstakes casinos.
• Misleading arbitration agreements requiring dispute resolution in jurisdictions like Malta or the Isle of Man.
• The absence of traditional casino licensing for the gaming platforms involved.

This lawsuit adds to the growing wave of class actions targeting sweepstakes casinos, but it’s the first to include Apple and Google as defendants, significantly broadening the scope of accountability.

Legislative Push to Ban Sweepstakes Casinos

The lawsuit arrives amid increasing regulatory scrutiny of sweepstakes casinos. Some state attorneys general have issued cease-and-desist letters to prominent operators, accusing them of running illegal gambling operations.

In parallel, the National Council of Legislators from Gaming States has drafted the Model Internet Gaming Act, which proposes stricter regulations for iGaming and includes language to ban sweepstakes casinos. The proposed penalties range from $10,000 to $100,000 per offense and up to two years of imprisonment for repeat violations.

These developments reflect a growing consensus among regulators to curb unlicensed gambling disguised as social gaming.

The Stakes for Apple, Google, and the Gambling Industry

For Apple and Google, this lawsuit represents a critical test of their role in facilitating online gambling. Both companies have faced criticism in the past for their app store policies, but this case could set a legal precedent with far-reaching implications.

The gambling industry is also under pressure to distinguish legitimate, licensed operations from unregulated platforms exploiting loopholes. The outcome of this lawsuit could influence future legislation, consumer protections, and the regulatory framework for sweepstakes casinos.

The RICO class action lawsuit against Apple, Google, and sweepstakes casino operators is a significant escalation in the battle over unregulated online gambling. With allegations of facilitating illegal payments and deceptive practices, this case could reshape the landscape of social casinos and the accountability of tech giants in the gambling ecosystem.

As regulators, lawmakers, and courts grapple with the complex nature of sweepstakes gambling, this lawsuit highlights the urgent need for clarity, oversight, and enforcement. Whether this case leads to sweeping reforms or settles quietly, it underscores the increasing scrutiny on tech platforms and their role in enabling controversial business models.

The stakes are high—for the players, the platforms, and the future of online gambling.