Federal Lawsuits Target Google and Apple Over Sweepstakes Gambling

Lawsuit Claims and Legal Foundation

The lawsuits argue that Google and Apple distribute these apps via the Google Play Store and Apple App Store, pocketing a hefty cut of in-app purchases. They also allege the firms handle payments between users and operators using their own systems, like Google Pay and Apple Pay.

The charges pile up. Plaintiffs say Google and Apple use targeted ads to steer vulnerable users to these platforms, while supplying operators with marketing tools, data analytics, and behavior-tracking systems. These tools, per the lawsuits, help optimize engagement and boost spending.

The filings assert that both companies collect user spending and behavior data, letting operators pinpoint high-value players. Allegedly, Google and Apple know the sweepstakes apps’ activities are illegal but profit anyway, acting as financial go-betweens for transactions. The goal is clear: recover losses for players who used these apps through the tech firms’ stores and pin responsibility on their involvement.

Earlier suits named sweepstakes operators like High 5 Casino alongside the tech firms, but the latest version, filed by March 2025, focuses solely on Google, Apple, and their payment arms. Julio Bargo and Lamar Prater kicked off the effort, now joined by Rebecca Platt from New York. They want cash back for a nationwide class of players, arguing the apps’ success hinges on the tech companies’ support. Neither Google nor Apple has commented publicly on the suits as of March 26, 2025.

Allegations and Sweepstakes Model

The lawsuits paint a detailed picture. They claim Google and Apple don’t just host these apps; they actively fuel what’s dubbed a “Sweepstakes Casino Enterprise.” This setup, per the filings, breaks state gambling laws and federal RICO rules by blending entertainment with real-money stakes. Sweepstakes apps use a dual-currency system: free “gold coins” for play and “sweeps coins” that can swap for cash or prizes. Plaintiffs argue this is a dodge to offer casino games under a legal mask, with the tech firms cashing in on every step.

Specific accusations stand out. The suits say Google and Apple take a big slice of in-app coin purchases, often up to 30% per industry norms. They allegedly provide operators with analytics to track user habits, helping target big spenders. Ads, tailored via the firms’ tools, push players toward these apps, per the claims. The filings also note that operators lean on Google and Apple for distribution and payment processing, while the companies rake in revenue from the apps’ earnings. Plaintiffs insist this mutual benefit keeps the enterprise rolling, with full knowledge of its shaky legal ground.

Context adds depth. Sweepstakes casinos operate in a gray area, unlicensed in most states unlike regulated online casinos in places like Michigan or New Jersey. In 2024, legal iGaming in seven states hit $6.1 billion in gross revenue, per American Gaming Association data, while sports betting in 30+ states topped $11 billion. Sweepstakes apps, often offshore, dodge taxes and oversight, pulling an estimated $1-$2 billion yearly from U.S. players, per industry guesses. The lawsuits argue Google and Apple make this possible, profiting while skirting rules.