While sweepstakes casino critics have claimed they are breaking the law, its defenders argue the platforms are little different from traditional social casinos and that legal and regulatory pressure has been historically common with new forms of gaming.
A spokesperson for the sweepstakes industry’s trade body, the Social and Promotional Gaming Association (SPGA), told NEXT.io: “Class actions are civil lawsuits that are not difficult to file, and any claim can be made within them.
“The fact that suits have been filed against any given company is in no way extraordinary or newsworthy. The accusations in any suit should never be taken at face value.
“Social sweeps operators are hardly the only entities to face class actions. DraftKings has several pending, as do other betting operators and traditional social casino operators.”
The suit was filed by the same attorneys behind the recent New Jersey action that also named Apple and Google, alongside several sweepstake casino operators.
The lawsuits both also alleged breaches of Racketeer Influenced and Corrupt Organizations (RICO) Act, which had not been the case with prior actions.The lawsuit said: “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 York and beyond, by an unlawful enterprise that includes two of the most successful corporations in the world.”
The plaintiffs argue the sweepstakes dual currency model transforms what appears to be a harmless social gaming platform into an unauthorised gambling operation.
They further allege that Apple and Google are complicit by distributing sweepstake casino apps through their stores and taking substantial cuts of the revenue.
Attorneys for the plaintiffs argued hundreds of millions of dollars are owed, highlighting the company’s Australian accounts that steep revenue totals for the 2023 and 2022 financial years.
As previously highlighted by the SPGA, the thresholds for submitting a class action lawsuit are relatively low, resulting in sweepstakes operators defending against many similar suits in state and federal courts.
Most of these have so far been tied up in procedural disputes, with no court having so far ruled against the sweepstakes.
