RICO Lawsuit Against Sweepstakes, Google and Apple Dropped
A class action lawsuit filed against several sweepstakes casino operators and Apple and Google in New Jersey has been dismissed.
LISTEN TO THIS ARTICLE:In November 2024, Julian Bargo, a New Jersey resident, launched legal action against four sweepstakes casinos, including High 5 Casino, McLuck, Wow Vegas, and CrownCoins Casino, claiming that he had lost over $1,000 while gambling on the platforms.
The suit also named Apple, Apple Pay, Google, and Google Pay as defendants for hosting the social casino apps and processing transactions through their payment services. According to the complaint, these actions violate the Racketeer Influenced and Corrupt Organizations (RICO) Act.
Although RICO charges are commonly associated with organized crime, Bargo's lawsuit argued that they are relevant in this case.
However, in a new development, Bargo has filed a notice to voluntarily dismiss his lawsuit without prejudice in the New Jersey District Court.
The notice of voluntary dismissal came just one day before the defendants were scheduled to submit their motions to dismiss the suit. The case had dragged on for almost five months with little progress.
By voluntarily dismissing the lawsuit without prejudice, Bargo retains the right to refile the case in the future if he so desires.
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Tech Giants Face Casino App Scrutiny
The suit is part of a growing trend of high-profile complaints filed against big tech for their involvement with casino apps.
Earlier this month, Apple, Google, and Meta requested that a federal judge in San Jose, California, dismiss three class-action lawsuits alleging that they unlawfully shared user data with casino-style gambling apps to target vulnerable individuals in exchange for a portion of the revenue.
The tech companies dispute the claim that user activity on the apps was gambling and point out that they only earned a commission fee of up to 30% on in-app purchases. Citing Section 230 of the Communications Decency Act, the Silicon Valley giants argued that they cannot be held liable for user-generated content.
The legality and regulation of sweepstakes casinos are also being debated in various state legislatures across the US. Last week, Assemblyman Clinton Calabrese of the New Jersey Assembly proposed a bill that would prohibit sweepstakes casino gambling in the state.
Such regulations have been introduced in North Carolina, Nevada, and New York.
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