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Apple and Google are facing a federal class action lawsuit under the Racketeer Influenced and Corrupt Organisations (RICO) Act, accused of facilitating illegal gambling through sweepstakes casino applications. The lawsuit, filed by Julian Bargo, Lamar Prater and Rebecca Platt, argues that the tech giants played a direct role in supporting and profiting from these apps, which operate in a legal grey area in the United States.
The lawsuit follows the voluntary dismissal of a similar case that targeted both the tech companies and specific sweepstakes casino operators. However, this new legal action focuses exclusively on Apple and Google, removing casino operators from the complaint. The plaintiffs seek financial compensation for users who lost money through sweepstakes casino apps available on the Apple App Store and Google Play Store.
Allegations of enabling illegal gambling
The plaintiffs claim that Apple and Google do more than just distribute these gambling apps. They allegedly provide marketing tools, data analytics, and user behaviour tracking that help developers increase engagement and maximise spending. Additionally, both companies reportedly take a significant percentage of in-app purchases and act as financial intermediaries by processing transactions between players and casino operators.
The lawsuit also accuses Apple and Google of using targeted advertising to attract users who are more likely to engage in repeated and substantial spending. The plaintiffs argue that the companies are fully aware of the alleged illegal nature of these platforms but continue to benefit financially from them.
Legal and industry implications
This case raises broader concerns about how major digital platforms handle gambling-related content and financial transactions. It could also lead to increased scrutiny on Google Ads gambling compliance news and how companies manage online gambling adverts.
Potential changes in gambling advert regulations
If the lawsuit succeeds, it may prompt changes in Google Ads gambling regulations 2025, leading to stricter guidelines for gambling-related apps and advertising. The case highlights ongoing debates about the responsibility of tech giants in regulating digital gambling platforms and ensuring compliance with gambling laws.
