Home Ryan Seacrest faces lawsuit over allegedly promoting illegal gambling in California

Ryan Seacrest faces lawsuit over allegedly promoting illegal gambling in California

Ryan Seacrest, known for presenting American Idol and Wheel of Fortune, is reportedly facing a new lawsuit that accuses him of promoting an illegal online casino in California.

According to court documents obtained by TMZ, California resident Aubrey Carillo is suing Seacrest, claiming she lost money playing on ChumbaCasino.com, a site he regularly promotes on his social media as the operation’s official celebrity endorser.

In the lawsuit, Carillo claims that ChumbaCasino.com is operating illegally in California, and by promoting it through paid ads on his social media, Seacrest is thereby endorsing illegal gambling. She also argues that his involvement is helping fuel the growing problem of online gambling addiction among both adults and teens.

Instagram post by @chumba.casino featuring a promotional video still of Ryan Seacrest smiling in a suit, with the Chumba Casino logo and legal disclaimer text at the top: “NO PURCHASE NECESSARY. VGW Group. Void where prohibited by law. See T&Cs. 18+. Paid Advertisement.” The caption includes a lengthy user comment expressing regret over gambling losses on Chumba Casino, describing personal financial struggles and family responsibilities. Chumba Casino replies, acknowledging the user's frustration and stating that they aim to help players relax and have fun at home. The post is dated January 8, 2024, with 129 likes.
Another player appears to have also complained about gambling harms. Credit: Instagram / Chumba Casino

ChumbaCasino.com doesn’t actually operate illegally in California. While it’s banned in a few states like Connecticut, Michigan, Montana, Nevada, and Washington, it runs under a sweepstakes model rather than a traditional online casino setup. The model allows it to legally operate in most US states, including California, without needing a real-money gambling license.

She even alleges that a child in her own family was able to access the site. Carillo is suing both Seacrest and Virtual Gaming Worlds (VGW), the Australian company behind ChumbaCasino.com, and is asking the court to shut the site down in California and block Seacrest from making any more money through his promotions of it.

A Chumba Casino spokesperson told ReadWrite that it “operates its social casino in strict compliance with all applicable laws and regulations. This lawsuit has no merit and Chumba will vigorously defend its legal right to operate its business.” The company representative also stated that Seacrest was “not involved in the operation” of the business, and that he had been “unfairly targeted.”

Ryan Seacrest and Chumba Casino’s partnership

VGW announced a 12-month partnership with Ryan Seacrest in December 2023, although they didn’t reveal how much the deal is worth.

At the time, Seacrest stated: “Who doesn’t love games? I’m now excited to announce my partnership with Chumba to bring the fun home all year long, making it accessible and easy to all.”

David Lyons, Chumba Casino’s general manager, said it was the “most notable partnership with a celebrity to date.”

Lyons added: “Ryan’s not only obviously incredibly talented but has broad recognition and traits that align with our brand.”

Carillo’s lawsuit, which also names VGW as a defendant, is asking for a court order to shut down ChumbaCasino.com in California and prevent Seacrest from earning any more money through his promotions for the site.

A source close to the situation told TMZ that they believe this is “just a nuisance lawsuit.”

Featured image: Chumba Casino via Facebook

About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the gambling and blockchain industries for major developments, new product and brand launches, game releases and other newsworthy events. Editors assign relevant stories to in-house staff writers with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Suswati Basu
Tech journalist

Suswati Basu is a multilingual, award-winning editor and the founder of the intersectional literature channel, How To Be Books. She was shortlisted for the Guardian Mary Stott Prize and longlisted for the Guardian International Development Journalism Award. With 18 years of experience in the media industry, Suswati has held significant roles such as head of audience and deputy editor for NationalWorld news, digital editor for Channel 4 News and ITV News. She has also contributed to the Guardian and received training at the BBC As an audience, trends, and SEO specialist, she has participated in panel events alongside Google. Her…

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