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Washington sues Aristocrat and Playtika over alleged illegal gambling in social casino apps

Virtual coins, real consequences. Washington's $250M lawsuit claims these apps exploit loopholes—and even target kids—while raking in millions.

The image shows a poster with text and a logo that reads "When companies sneak hidden junk fees...
The image shows a poster with text and a logo that reads "When companies sneak hidden junk fees into families' bills, it can take hundreds of dollars a month out of their pockets."

Washington sues Aristocrat and Playtika over alleged illegal gambling in social casino apps

Washington state has filed a lawsuit against gaming companies Aristocrat and Playtika, accusing them of running illegal gambling operations. The case, brought in King County Superior Court in late 2023, claims their social casino apps—including Slotomania and House of Fun—violate state gambling laws by offering games with elements of chance, prizes, and real-world value.

The state seeks over $250 million in penalties, along with injunctions and restitution for affected users.

The lawsuit centres on apps that let users buy virtual coins with real money. Some players reportedly spend thousands of dollars on these crazy games. While the apps do not use real cash for bets or payouts, Washington argues they still qualify as gambling under state law.

A 2018 court ruling had already established that virtual currency in such games counts as a 'thing of value'. The state claims this supports its case, as players can redeem virtual coins for real prizes through sweepstakes models.

Washington also accuses the companies of targeting children. The complaint highlights Playtika's Bingo Blitz app, which features cartoon characters and game designs appealing to young audiences. YouTube videos promoting the game allegedly focus on kids as well.

The lawsuit notes that over 150,000 Washington residents use these apps monthly, despite attempts at geoblocking. The state has previously taken legal action against other gaming companies for similar violations, arguing these operations run without proper licensing.

If successful, the lawsuit could force Aristocrat and Playtika to stop offering their apps in Washington. The state is also pursuing financial penalties and compensation for users who spent money on the cool math games. The case will test how gambling laws apply to virtual currency and social casino apps.

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