Class Action Lawsuit Filed Against Google and Apple Over Sweepstakes Casino Apps

04.12.2024

Google and Apple face a class action lawsuit in New Jersey, alleging violations of the RICO Act. The lawsuit accuses the tech giants of facilitating and profiting from illegal gambling through sweepstakes casino apps available in their app stores.

RICO Lawsuit Against Apple and Google

The lawsuit filed under the RICO Act claims that Apple and Google knowingly aided, promoted, and benefited from illegal gambling by hosting sweepstakes casino apps in their app stores.

According to the suit, these companies allegedly facilitate illegal gambling operations by processing payments between users and sweepstakes casino operators while taking a substantial share of the profits.

The plaintiffs argue that Apple and Google violate the RICO Act by supporting apps that exploit legal loopholes, potentially exposing consumers to financial and psychological harm.

The lawsuit highlights that sweepstakes casinos operate as unregulated gambling platforms, misleading users with “sweepstakes coins.” These virtual currencies purportedly offer minimal chances of payout, often subject to arbitrary or fabricated terms.

Furthermore, the suit points out the inconsistency in policies, noting that while Apple and Google ban real-money gambling apps, they allow sweepstakes casino apps, which the plaintiffs argue function as illegal gambling platforms.

Potential Implications and Next Steps

This lawsuit marks the beginning of what could be a lengthy legal process, with several possible outcomes.

A settlement could allow Apple and Google to avoid a costly and drawn-out trial. Such an agreement might include compensation to the plaintiffs, removal of sweepstakes casino apps from their platforms, and changes to their app store policies.

If the case proceeds to court, Apple and Google would need to defend themselves against allegations of RICO Act violations. A loss could result in significant financial penalties.

The lawsuit may also prompt lawmakers to introduce stricter regulations for sweepstakes casinos, a change long advocated by some industry players.

Potential regulatory measures might include requiring operators to obtain gambling licenses or banning games that closely mimic traditional casino offerings.