A Sweepstake casino class action lawsuit in New Jersey claims Google and Apple profited illegally from unrelated social casino platforms. (Image by inkong_1994 on Vecteezy)
When we think about social casinos, we think of free online slots and table games. These casinos are set up to offer free play whereby payers earn coins.
There are plenty of poker sites also using the same concept with gamification included.
Yet, to my dismay I saw that Apple and Google are now part of a class action lawsuit because people have lost money playing on social sites available via their apps.
Had these two big names in tech not been mentioned, I probably would have skipped past it.
As for the social casino involved in the class action alongside the two tech giants, they are names I’ve seen floating around the iGaming newswires.
Wow, Vegas, CrownCoins Casino, High 5 Casino and McLuck are popular social casino sites that offer bonus codes and the option to buy coins.
It is these purchase options that have led plaintiffs under the Racketeer Influenced and Corrupt Organizations (RICO) Act. As for the location of the suit, it has been filed in New Jersey.
One player involved in the class action suit has said he lost over $1,000 playing social casino games. The lawsuit states that not only is the Sweepstakes site profiting, but Apple and Google have also shared in the spoils and, therefore, are also liable to pay compensation.
The most worrying claim for the social casinos and tech giants is that the casinos are being dubbed as illegal and unregulated. Furthermore, the class action claims that promotions given out by the sweepstakes sites are misleading.
In my opinion, so far I’ve not really heard anything I feel that can hold the casinos of tech giants accountable. However, there could be an issue with sites that offer real money prizes via Sweepstakes.
When real money prizes are up for grabs, this could lead people to spend more money on buying virtual coins. This is, in my view, a form of gambling. People may deposit to chase these prizes, run out of virtual chips, and deposit again, leading to a form of gambling addiction.
My prediction: I am not an expert on the law on this matter. From my very little knowledge of the laws and my research, I’d say it’s 50/50. Yet, I am only reporting the fact, while giving my opinion comes from zero knowledge of the RICO act cited in the class action. The source of my information was sbcamericas.com – Google and Apple were named in the latest sweepstakes casino lawsuit.
The History of Tech Giants Trying to Abscond Themselves from Prosecution
Quite how far the lawsuit will go against Apple and Google, I am not sure. According to a Reuters news report, Apple, Google, and Meta have been fighting to ensure they are immune from claims they promote illegal gambling.
That case was back in May this year and didn’t confirm that any of the companies are immune from being sued. The only area where these companies are not responsible for illegal gambling activities is as per Section 230, which protects internet companies from being held liable for content created by third parties.
At this time, the case has been remanded to the U.S. District Court for further proceedings. The reason for the case being pushed is because the judges said they do not have jurisdiction over the matter.
That could mean Googe and Apple, along with Meta (not names in the class action), may try to push their appeal forward to avoid the current class action. Meanwhile, the timing of the latest class action in New Jersey is likely because these tech giants currently do not have immunity from promoting illegal casino apps.
My question is, are these apps illegal? The US has let them operate for many years while real money online gambling was illegal. That is until Michigan, Pennsylvania, and West Virginia followed New Jersey and Delaware into creating a legal online gambling market.
We will have to wait and see what the outcome is. However, as usual, if these large tech giants find themselves at fault, they tend to settle and seal the matter out of court, then tie up loopholes that leave them vulnerable to future prosecution.
If any legal experts out there know the law on this topic, please feel free to leave a comment. The team here at Casinoplusbonus are incredibly interested to hear your expert opinions.
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