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Tech giants Google and Apple are again under fire in a fresh federal class action lawsuit accusing them of being involved in illegal sweepstakes gambling. This comes barely a week after a RICO lawsuit targetted at both companies was dropped in New Jersey.
The new one, Bargo et al v. Pratt et al.., has also been filed under the Racketeer Influenced and Corrupt Organisations (RICO) Act, with both companies being accused of playing a crucial role in promoting and profiting from unlicensed gambling activities by distributing and facilitating payment processes for sweepstakes casinos. The lawsuit also alleges that they are actively advertising these digital casino games, despite their violation of state gambling laws.
Julio Bargo and Lamar Prater are plaintiffs in the new case, their third legal attempt to hold the tech giants accountable for the financial losses they attribute to their interactions with these sweepstakes platforms. Rebecca Platt of New York also joins this time.
Only Apple and Google Targetted
While previous cases have included sweepstakes operators among the defendants, this lawsuit takes a distinct approach by focusing solely on Apple and Google.
The plaintiffs, led by Julio Bargo, aim to recover financial losses for players who engaged with any sweepstakes casino application or website accessed through the Apple App Store or Google Play Store.
The complaint details several allegations against both companies, accusing them of serious misconduct. It claims that Google and Apple are distributing illegal sweepstakes casino apps on their platforms, thereby facilitating access to unlicensed gambling activities. Additionally, the lawsuit points out that both companies benefit financially by taking a significant cut of in-app purchases made by users.
Moreover, the plaintiffs argue that Apple and Google enable payments between users and sweepstakes casino operators through their proprietary payment systems, further showcasing their involvement in these illegal operations.
It went on to highlight targeted advertising strategies employed by both companies, which allegedly direct vulnerable users toward these gambling platforms. “The Defendants facilitate the Sweepstakes Casinos’ predatory conduct by helping them target the consumers most likely to fall prey to their illicit scheme,” the suit stated.
Google and Apple Accused of Predatory Practices
The suit went on to accuse both companies of engaging in predatory practices by providing sweepstakes casino developers with a range of marketing tools, data analytics, and user behavior monitoring systems designed to boost engagement and increase spending.
By offering promotional support and enhanced visibility within their app marketplaces, the tech giants allegedly enable these sweepstakes applications to attract a user base that is more likely to engage in repeated and significant in-app purchases.
The complaint further alleges that both companies collect extensive spending and behavioural data from users interacting with these apps. This data allows sweepstakes casino operators to pinpoint and target high-value users.
Importantly, the lawsuit contends that Apple and Google are fully aware of the unlawful nature of the operations conducted by these sweepstakes casinos but continue to profit from their involvement. It also highlights the data-driven targeting technique as a form of predatory monetization that shouldn’t be encouraged.
A Broader Suit
Previous suits might have focused on losses, but the plaintiffs are now pursuing a broader legal challenge that intensifies scrutiny on the role of major tech platforms in enabling and profiting from activities they contend are illegal gambling operations.
Focus has now been shifted away from naming specific sweepstakes operators, such as High 5 Casino and WOW Vegas, and instead aims to highlight how the alleged unlawful activities are only possible thanks to the financial involvement and support of Google and Apple.
If the plaintiffs get the class certification they are looking for, they will be allowed to represent a larger group of users who made purchases within sweepstakes casino apps accessed through either Google’s or Apple’s platforms.
Both companies have yet to comment publicly on the latest lawsuit.
Source: Next.io
