Apple, Google Face Class Action Over Casino Apps

Case Overview: A class action lawsuit claims Apple and Google knowingly profited from online casino apps operating as unregulated gambling platforms.

Consumers Affected: Users in New Jersey who have lost money while using these apps.

Court: U.S. District Court for the District of New Jersey

Apple and Google are facing a class action lawsuit alleging that they have knowingly profited from online casino apps operating as unregulated gambling platforms. The lawsuit targets apps such as High 5 Casino, Wow Vegas, CrownCoins Casino, and McLuck.com, claiming these platforms present themselves as harmless entertainment while engaging in practices akin to gambling.

Julian Bargo, a New Jersey resident, filed the lawsuit, stating that he lost over $1,000 while using these apps. He argues that the apps use deceptive methods to encourage users to spend money on virtual tokens, often marketed as “Game Coins.” 

While these tokens are advertised for entertainment purposes, users are also awarded sweepstakes tokens, or “Sweeps Coins,” which can allegedly be redeemed for cash, gift cards, or cryptocurrency. The lawsuit asserts that these practices transform the apps into unregulated gambling operations.

Casino Apps Disguised as Harmless Entertainment, Lawsuit Claims

According to the lawsuit, the apps entice users with free tokens to start playing digital games like slots, poker, and blackjack. Once these tokens are used, players are encouraged to purchase additional Game Coins to continue. 

Sweepstakes tokens, awarded during gameplay, are promoted as having real-world value. However, the complaint states that these promises are rarely honored, with users often denied the ability to redeem prizes due to arbitrary reasons.

“In short, what begins as a straightforward ‘pay to play’ social casino quickly morphs into an illicit gambling site, where users are paying real money to play games of chance in the hopes of winning an arbitrary financial windfall,” the lawsuit argues. “The sale of game coins is simply a pretext to entice users to win sweeps coins, in what amounts to an unlawful, unauthorized casino—the exact type of illicit gambling operation prohibited by state and federal law.”

The complaint describes the operations of these apps as resembling unauthorized gambling platforms. Unlike regulated casinos, which are required to pay winnings, the operators behind these apps allegedly pay only at their discretion, if at all. The lawsuit argues that this lack of accountability harms players financially while benefiting the app developers and their partners.

Apple and Google Accused of Facilitating Illegal Gambling

Bargo accuses Apple and Google of facilitating these gambling practices by distributing the apps through their platforms and profiting from in-app purchases. According to the complaint, the companies collect up to 30% of all in-app transactions, effectively earning revenue from what the lawsuit describes as illegal gambling activities. The lawsuit also alleges that both companies fail to monitor or restrict these apps despite their policies prohibiting gambling content without proper licensing.

Other Lawsuits Targeting Similar Practices

This case joins a growing number of lawsuits against companies accused of profiting from unregulated gambling apps. In recent years, other lawsuits have been filed against similar platforms and their distribution partners, raising questions about accountability in the tech industry.

In one example, a lawsuit was filed against Amazon and Facebook for allegedly promoting and profiting from apps with gambling-like features. Plaintiffs claimed these apps used deceptive practices to lure users into spending money on virtual tokens. Additionally, social gaming platforms like Zynga have faced scrutiny for their in-app purchase models, which critics argue mirror gambling systems.

In the Apple, Google social casino class action lawsuit, Bargo seeks to represent other users in New Jersey who have lost money while using these apps. He is suing for compensation for financial losses, as well as injunctive relief to prevent the continued operation of these apps in their current form.

Case Details

• Lawsuit: Julian Bargo v. Apple, Inc. et al.
• Case Number: 2:24-cv-10805
• Court: U.S. District Court for the District of New Jersey

Plaintiffs' Attorneys

• Justin A. Meyers and G. Martin Meyers (Law Offices of G. Martin Meyers, P.C.)

Have you used any of the casino apps mentioned in this lawsuit? Share your experience in the comments below.