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Washington's Attorney General Nick Brown has filed a lawsuit against several sweepstakes casino companies that operate unlicensed electronic gambling applications (casino apps) which have taken more than $225 million from residents of the state since September 2020.
Washington is one of a handful of US states that have taken measures to stop sweepstakes casinos from operating in their respective jurisdiction.
Unlike a real money online casino, sweepstakes - or social casinos - is an online platform that allows users to play casino-style games, including slots, bingo, table games, and even live casino games, using virtual currency instead of real money. These types of online casinos rely on additional real money purchases once the free play component is exhausted. In contrast, real money online casinos require a small deposit that can be increased through wins. Free play and cash bonuses are typically offered as well.
Slotomania, House of Fun, Caesar’s Casino Slots, Vegas Downtown Slots, World Series of Poker, Poker Heat, Monopoly Poker, Governor of Poker 3, Bingo Blitz, Big Fish Casino, Jackpot Magic Slots, Lightning Link Casino, Cashman Casino, Heart of Vegas, Mighty Fu Casino, and NFL Superbowl Slots Casino.
The main companies, Playtika and Aristocrat, do not have licenses to operate their gambling apps in Washington, yet combined they operate 16 apps that more than 150,000 Washingtonians use to engage in gambling activities every month. The complaint alleges the companies violated the Gambling Act and the Consumer Protection Act, and seeks to halt these unlawful activities and recover all the money Washingtonians have lost to this scheme.
The companies have also allegedly engaged in deceptive practices in violation of the Consumer Protection Act. None of the apps ask players for their age or date of birth and, most disturbingly, Playtika allegedly targets children with its gambling activities. Playtika’s Bingo Blitz app features a blue cartoon cat named Blitzy and his pink mouse pal named Moxie. Blitzy also has a grandma cat that gives Blitzy a photo album to fill with pictures of his travels, which he obtains by playing bingo on the Bingo Blitz map. Bingo Blitz also has an associated Youtube channel that produces content akin to children’s television. Some users report that their children use their parents’ phones to play casino apps like Bingo Blitz, spending hundreds of dollars in the process.
“These companies repeatedly violated Washington law, engaged in deceptive practices, and fleeced Washingtonians out of hundreds of millions of dollars,” Brown said. “It is especially troubling to see gambling apps targeting children.”
In the apps, which include Caesar’s Casino Slots, World Series of Poker, and Big Fish Casino, Washingtonians have collectively spent hundreds of millions of dollars buying “virtual currency” to then wager that currency on the outcomes of contests of chance, such as slots, poker and scratchcards, all for the opportunity to win virtual currency to wager more. This is illegal gambling, as alleged, and Washingtonians have lost millions. Some individuals have lost hundreds of thousands of dollars.
As alleged in the lawsuit, Playtika and Aristocrat seek to replicate the casino experience in a mobile app, making gambling available anywhere, anytime and to anyone. As Playtika puts it, they want to give “players the Las Vegas experience at the palm of their hand.” The difference being that Las Vegas cashes out a player’s winnings, whereas these casino apps hold onto a player’s winnings, banking it within the app so the player’s only option to make use of their winnings is to keep gambling within the app.
Washington carefully regulates gambling activities to protect and safeguard the public. In 2006, the Legislature amended the 1973 Gambling Act to make it clear that internet gambling is prohibited under Washington law unless the operator has a license.
- Gilbert Horowitz, Gambling911.com
