Apple and Google Accused of Profiting from Illegal Gambling in New Jersey
Tech giants Apple and Google are facing a lawsuit in New Jersey, accused of facilitating and profiting from illegal gambling operations hosted on their platforms.
The lawsuit, filed in the District Court of New Jersey on November 28, blames both companies for their alleged support of and profit from sweepstakes casino operators such as High 5 Casino, Wow Vegas, Crowncoins Casino, and McLuck.com. In facilitating app ecosystems, Apple and Google are accused of hosting gambling platforms that use “Game Coins” for play and “Sweeps Coins,” redeemable for cash and prizes.
However, the complaint alleges that payouts are infrequent and withheld under “arbitrary and contrived reasons.” The lead plaintiff, Julian Bargo, claims substantial financial losses exceeding $1,000, attributing his misfortune to the manipulative practices of these sweepstakes casinos. In a departure from previous lawsuits, the legal team has invoked the federal RICO Act, accusing the defendants of acting as part of an ongoing criminal organization.
Sweeping Legal and Financial Implications
This lawsuit is unprecedented in directly implicating Apple and Google in such cases. Both companies manage financial transactions for these apps, taking a percentage of in-app purchases—profits now under scrutiny.
Past lawsuits in the industry often excluded tech companies, focusing instead on smaller operators. This shift toward targeting app hosts themselves could mark a turning point in how liability is assigned in online gambling disputes.
Push for Regulation Intensifies
The case coincides with broader regulatory efforts, including the proposed “Model Internet Gaming Act” by the National Council of Legislators from Gaming States. This would provide states with tools to regulate or outlaw sweepstakes casinos more effectively while enforcing substantial penalties for violations.
Meanwhile, the financial stakes of the sweepstakes casino industry remain high. In 2023, Australia-based Virtual Gaming Worlds, a major player in this space, reported $4 billion in revenue, underscoring the economic significance of these platforms.
As the lawsuit unfolds, its outcome could redefine the gaming industry’s regulatory landscape and challenge the roles of major tech platforms in facilitating such operations.
We want to remind you that gambling can be addictive. If you notice any signs of gambling addiction, please seek help at gambleaware.com. For more support and information, visit our Responsible Gambling section.
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