California resident Aubrey Carillo filed a lawsuit against the companies associated with operating ChumbaCasino.com, an online sweepstakes casino, and celebrity Ryan Seacrest. Virtual Gaming Worlds (VGW) Holdings is the owner of the sweeps sites Chumba Casino, Luckyland Slots, and Global Poker.
Lawsuit Alleges Ryan Seacrest Is Promoting Illegal Gambling
Seacrest, host of the American television shows “Wheel of Fortune” and “American Idol,” has been an official celebrity sponsor of Chumba Casino.
In the lawsuit, Carillo claims Seacrest is promoting illegal gambling by posting paid advertisements for Chumba on social media and by appearing in promotional materials on the Chumba Casino website.
The suit, filed in the Superior Court of the State of California for the County of Riverside, seeks an injunction to shut down the sweeps website in the Golden State and to prevent Seacrest from profiting from the casino.
Carillo also alleges that Seacrest is contributing to online gambling addiction among adults and adolescents. She said at least one child in her family accessed the website.
The suit claims, “Seacrest has a reported net worth of $450M and has had estates or penthouses in Beverly Hills, Napa Valley, Bel-Air & Manhattan. Someone this blessed in life does not need to hurt people for more money, but Seacrest does just that by serving as the official celebrity endorser.”
Another California Lawsuit Takes Aim At Stake.us
This isn’t the first California lawsuit targeting sweeps.
In March, a lawsuit was filed against the sweepstakes operator Stake. The complaint, filed by plaintiff Dennis Boyle, claimed the platform violates state law by offering casino-style games to residents.
Stake.us is the U.S. brand of Stake. The platform’s “no purchase necessary” business model for sweepstakes gaming was mentioned in the case. Boyle alleges that the site’s “Gold Coins” and “Stake Cash” system is real-money gambling.
Players can purchase Gold Coins and receive Stake Cash, which can be redeemed for prizes including gift cards and cryptocurrency. Boyle also claims that the website specifically targets California residents.
The complaint states that Stake.us asks users to disclose their state during registration and has privacy policies tailored to California residents.
In addition, the suit alleges multiple violations of California’s Unfair Competition Law.
Boyle’s attorneys also argued that Stake.us operates without proper registration or licensing. His legal team seeks to void any contracts with the platform and obtain injunctive relief to prevent Stake.us from operating in the state.