Apple, Google sued again: Lawsuit alleges tech giants profited from illegal sweepstakes casinos
Tech giants Apple and Google are facing fresh legal trouble. They have been named in a refiled federal class-action lawsuit alleging their direct involvement in facilitating illegal gambling operations via sweepstakes casinos. The case, filed in the U.S. District Court for the District of New Jersey, accuses both companies of violating the federal Racketeer Influenced and Corrupt Organizations (RICO) Act by profiting from what plaintiffs call an unlawful gambling enterprise.
The lawsuit is a revival of two previously dismissed cases brought by plaintiffs Julian Bargo and Lamar Prater, who are now joined by a third plaintiff, Rebecca Pratt from New York. Unlike the prior cases, which directly sued the sweepstakes casino operators, this new filing exclusively targets Apple and Google, alleging they played a crucial role in the operations of illegal gambling platforms such as High 5 Casino, Chumba Casino, and Luckyland.
Allegations against Apple and Google
The lawsuit argues that Apple and Google have been essential facilitators of these sweepstakes casinos through:
- Hosting and distributing illegal gambling apps: Apple’s App Store and Google’s Play Store have allegedly been used as platforms to distribute these apps, allowing sweepstakes casinos to reach a wide user base.
- Profiting from in-app purchases: The companies are accused of taking a “substantial percentage” of all transactions made through in-app purchases, particularly in the form of virtual coins used for gambling.
- Processing illicit transactions: The lawsuit alleges that Apple and Google, via their proprietary payment systems, process transactions between consumers and these online gambling platforms, further entrenching their financial interests.
- Targeted advertising and algorithm manipulation: Plaintiffs claim the tech giants use targeted advertising and search algorithms to steer vulnerable consumers toward sweepstakes casino apps and websites, thereby enhancing the profitability of the alleged scheme.
High-stakes case
Gaming and sports betting attorney Daniel Wallach noted that the lawsuit describes Apple and Google as “directly profiting” from the unlawful misconduct of sweepstakes casinos by not only hosting the apps but also actively driving consumer engagement through marketing guidance, promotional tools, and spending data collection.
A particularly strong accusation within the complaint states that these companies “monitor game activity and collect spending data,” which allows sweepstakes casinos to target high-spending users—a strategy commonly associated with predatory gambling practices.
Potential legal and financial implications
If the lawsuit succeeds, Apple and Google could be held financially liable for losses incurred by a nationwide class of users who gambled through any sweepstakes casino on their platforms. The complaint estimates that the losses amount to hundreds of millions of dollars, which could be tripled under RICO statutes, potentially leading to multi-billion-dollar damages.
Moreover, a ruling against the tech giants could have far-reaching regulatory consequences, forcing them to re-evaluate how they handle gambling-related apps, in-app transactions, and targeted advertising.
