Tech giants Apple and Google have been accused of playing key roles in an illegal online gambling operation as part of a new federal class action lawsuit. The suit alleges that the companies targeted vulnerable users, enabled sweepstakes casinos, and collected billions of dollars in the process.
Lawsuit Against Apple And Google Was Filed Under The RICO Act
The lawsuit, which was filed under the Racketeer Influenced and Corrupt Organizations Act (RICO), claims Apple and Google profited from sweepstakes casinos, online gambling platforms that use their own form of currency, typically known as Gold Coins (GC) and Sweep Coins (SC) instead of real money.
Plaintiffs Julio Bargo, Lamar Prater, and Rebecca Platt of New York allege that the tech firms played a significant role in allowing illegal gambling through sweepstakes casino apps.
According to the lawsuit, Apple and Google are both liable since the companies distributed these apps through the App Store and Google Play, taking a “substantial percentage” of every in-app purchase of virtual coins used for gameplay.
The tech companies also allegedly processed “illicit transactions” between users and the casinos via their proprietary payment systems, and they used targeted advertising and search algorithms to “shepherd the most vulnerable customers to the sweepstakes casino websites and apps.”
Case Is A Re-Filing Of Two Earlier Lawsuits
More importantly, the case is a re-filing of two earlier lawsuits that were dismissed without prejudice. That means the plaintiffs were free to reopen the cases again. This time, however, the plaintiffs are not targeting the casino operators. Instead, they’re going after the tech platforms to put a stop to it.
The lawsuit states:
“The Defendants facilitate the Sweepstakes Casinos’ predatory conduct by helping them target the consumers most likely to fall prey to their illicit scheme. The Defendants provide marketing guidance, promotional tools, and more to drive consumers to download the Sweepstakes Casinos’ apps and make in-app purchases. The Defendants monitor game activity and collect spending data that the Sweepstakes Casinos use to increase user spending on their apps and websites.”
The suit then states:
“The Defendants continue to maintain a sizable financial interest by hosting their apps… using targeted advertising powered by search algorithms… and in many instances, processing payments on behalf of the Sweepstakes Casinos themselves.”
Apple and Google have yet to comment publicly on the lawsuit.