Apple, Google, And Sweeps Operators Off The Hook In New Jersey RICO Lawsuit

It feels like it’s been a while since any social/sweepstakes casino operators have received good news in the U.S., but here’s a rare ray of sunlight for them: A high-profile lawsuit several sites were facing in New Jersey has been dropped.

High 5 Casino, McLuck, Wow Vegas, and CrownCoins Casino were all named, but they were definitely not the most noteworthy defendants in the case, which also targeted Google and Apple and accused them of violating the Racketeer Influenced and Corrupt Organizations (RICO) Act by hosting sweeps apps.

New Jersey plaintiff Julian Bargo filed the complaint on Nov. 27, and it was winding its way through the legal process until last Thursday, when Bargo and his attorney Gary Meyers filed a notice of voluntary dismissal without prejudice. That was then signed by Judge Madeline Cox Arceo.

Bargo and Meyers have not stated a reason for withdrawing the case.

Sweepstakes encountering legal hurdles

In filing the suit, Bargo claimed he lost over $1,000 gambling on the apps, which are unregulated in the U.S. and are not explicitly legal in New Jersey or other states.

The sweepstakes sites are not explicitly illegal either, however — though legislation attempting to define them as such is making its way through statehouses in several jurisdictions.

Sweepstakes casinos utilize two forms of currency — typically, “gold coins,” which have no cash value, and “sweeps coins,” which can be redeemed for cash or prizes. Customers can play entirely for free, or they can make purchases of coins. Technically, they buy the gold coins with real money and are given sweeps coins as a bonus, which, in the purview of the operators and others who support sweepstakes gaming, is fully legal under sweepstakes law.

There are currently bills being considered in at least seven states to ban online sweepstakes: Connecticut, Florida, Maryland, Mississippi, Nevada, New Jersey, and New York.

Connecticut specifically took aim at High 5, recently hitting the site with 1,065 criminal counts of conducting illegal gaming activity in the state.

High 5 responded, in part: “High 5 Games has always upheld the highest regulatory standards and remains committed to compliance across all jurisdictions in which we operate. Throughout our 30-year history as an established gaming brand in the U.S., we have worked closely with regulators to ensure responsible and transparent business practices, offering an experience to our loyal business partners that is both enjoyable and safe.

“We are committed to cooperating with Connecticut regulators to resolve this matter and maintain the integrity of our gaming licenses.”

The situation in New Jersey is particularly notable, as Assemblyman Clinton Calabrese filed a bill in January to regulate sweeps, then reversed course last week with a bill to ban them.

Bargo’s suit claimed that Apple and Google, as well as Apple Pay and Google Pay, violated the RICO Act by supporting the sweepstakes platforms.

If the lawsuit was ever a matter of significant concern to the two tech giants, it isn’t any longer.