Apple and Google, two of the biggest and most influential technology and corporation giants, are facing a lawsuit for promoting illegal gambling apps in the state of New Jersey.
More specifically, Apple and Google have allegedly hosted sweepstakes casino games from several online gambling operators in the likes of Wow Vegas, McLuck, Crowncoins Casino, and High 5 Casino.
As per the details of the lawsuit, the actions of Apple and Google are in direct violation of the federal RICO (Racketeer Influenced and Corrupt Organizations) Act, specifically created to battle organized crime, as well as individuals and companies that profit from illegal gambling.
The suggested Model Internet Gaming Act, which aims to fully ban sweepstakes, mandates fines of up to $100,000 per violation, and consequently, ban all such apps altogether.
This case is about patently illegal gambling software being distributed to the cell phones, desktop computers and other personal electronic devices of individuals throughout New Jersey and beyond, by an unlawful enterprise that includes two of the most successful corporations in the world.
Moreover, the complaint states that the lawsuit is “about illegal gambling software being distributed” across multiple portable devices throughout New Jersey, made possible by “two of the most successful corporations in the world”.
The complaint touches upon the standard sweepstakes structure where players receive “Game Coins” to play casino games, referring to “Sweeps Coins”, a digital incentive that can be exchanged for cash and rewards.
The lawsuit against Apple and Google states that the payouts made through these platforms are seldom honoured, attributing the non-existent payouts to “arbitrary and largely artificial justifications”.
Julian Bargo, the lead plaintiff, has reportedly lost “well over” $1,000 on these particular sweepstakes casino websites.
Lawyers claim that both Google and Apple violated the federal RICO Act, which, in turn, allows civil lawsuits for activities that were administered as part of an organized criminal scheme.
Furthermore, the lawsuit states that Google’s Play Store and Apple’s App Store are supporting illegal payments between third parties, and more concerning, they considerably profit from the proceedings.
The Gaming Defendants have succeeded in misleading regulators about the true nature of their operations for far too long. These Defendants are not licensed casinos. They are not regulated by any casino regulator as a traditional casino would be. No one is looking over anyone’s shoulder to ensure that the digital dice aren’t loaded. And the Gaming Defendants have, thus far, managed to entirely insulate themselves from civil liability by hiding behind an iron curtain of bizarre arbitration agreements, many of which require arbitration in far-flung locales like Malta, the Isle of Man, etc.
The National Council of Legislators from the Gaming States have prepared a proposal that includes fines between $10,000-$100,000 per offence, as well as prison sentences of up to two years for repeated felonies.
