Apple and Google have been accused in recent court filings of knowingly assisting, promoting, and profiting from illegal gambling by allowing sweepstakes casino games on their platforms.
In the lawsuit, New Jersey resident Julian Bargo alleged he lost over $1,000 across several sweepstakes casinos, naming High 5 Casino, McLuck, Wow Vegas, and CrownCoins Casino as defendants for allegedly operating illegal gambling sites.
The complaint also targets Apple Pay and Google Pay, with Bargo claiming violations of the Racketeer Influenced and Corrupt Organizations (RICO) Act, accusing them of enabling and supporting these platforms.
Although RICO charges are traditionally associated with organized crime, Bargo’s filing argues they are applicable in this context.
Cited by SBS Americas, the suit reads: “The Gaming Defendants have succeeded in misleading regulators about the true nature of their operations for far too long.”
Why Google and Apple have been accused of profiting from illegal gambling
The lawsuit alleges that Apple and Google unlawfully profit from sweepstakes casino activity. It states that both companies benefit financially through the commissions they collect from apps hosted on their platforms, including social casino apps, and by integrating their payment systems into these sweepstakes sites, making them complicit in the alleged misconduct.
Sweepstakes and social casinos are unregulated and do not require licensing. However, certain regulators, such as those in Michigan and Ohio, have taken a firm stance against social casinos and other unregulated gambling activities, issuing effective cease-and-desist orders to sweepstakes operators like those named in the lawsuit.
While this is the first case to name Google and Apple as co-defendants, it is not the first sweepstakes lawsuit to include payment processors as defendants. A similar lawsuit against VGW in Florida named Worldpay as a co-defendant.
Social casinos allow users to play for free or purchase virtual currency, which can unlock features tied to gambling-style games like slot machines, blackjack, and roulette. Some social casinos go further by incorporating sweepstakes elements, offering real-money prizes. In November, ReadWrite reported that Google is now allowing social casino game app campaigns to run on its platform.
ReadWrite has reached out to Google and Apple for comment.
Featured image: Ideogram
