Tech giants Google and Apple are currently under legal examination in New Jersey. They are implicated in a lawsuit that accuses them of breaching the Racketeer Influenced and Corrupt Organizations (RICO) Act. Filed on November 27, the lawsuit focuses on their role in supporting sweepstakes casino apps, a burgeoning industry that has sparked significant controversy due to its distinctive business model and regulatory uncertainties.
The main plaintiff, Julian Bargo, alleges a loss of over $1,000 due to his involvement with sweepstakes casinos. Apple and Google are among five defendants named in the case. These social casinos offer users the option to play games for free or purchase virtual currency. This currency can be used to access game features often linked to gambling, such as slot machines, blackjack, and roulette. Some platforms have expanded their offerings by incorporating sweepstakes elements, which include real-money prizes.
Although these platforms are popular due to their easy access and entertainment appeal and appear to align with current laws that vary by state, critics contend that they effectively transform smartphones into unregulated gambling devices.
### Sweepstakes Are Neither Licensed Nor Regulated
Unlike conventional casinos, sweepstakes operators in the United States are not required to be licensed or regulated. Consequently, they are not subject to paying gaming taxes, despite largely catering to American consumers. Moreover, most leading sweepstakes casino operators are situated offshore.
Virtual Gaming Worlds (VGW), an Australian company operating platforms like Chumba Casino, LuckyLand Slots, and Global Poker, exemplifies the industry’s success. In 2023, VGW reported a revenue of $4 billion, with $322 million in net earnings. As highlighted by The Washington Post, VGW’s financial success has enabled it to sponsor Ferrari’s Formula One team and partner with prominent celebrities such as Ryan Seacrest, Michael Phelps, and DJ Khaled to promote its platforms.
For more details, read the full story [here](https://www.casinoreports.com/google-apple-rico-lawsuit/).
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