Apple hit with lawsuit over casino sweepstake apps

LEGAL

Apple including Google face a new lawsuit alleging that casino games in the Apple App Store violate gambling laws in New Jersey by offering sweepstakes casino apps.

A New Jersey resident Julian Bargo alleged in his federal complaint filed Wednesday that although the apps are marketed as free entertainment they function as unlicensed casinos.

In 2019, Americans lost $3.5 billion playing “free to play” gambling apps. Although the apps are initially free, consumers may be encouraged to make in-app purchases in order to continue playing the games.

Gambling apps allow users to play casino-like games on their mobile phones without actually going to the casino. Although these apps may be free to download, they do include in-app purchases.

As a result, users may end up gambling with real money. Gambling apps typically do not offer actual cash winnings from the games. Instead, won games provide more in-app currency — allowing users to play for longer.

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