Washington is set to become the latest battleground state where casino-style games are coming under assault.
The latest move is initiated by Washington Attorney General Nick Brown, who is now suing several companies, including Aristocrat and Playtika, over what he argues are illegal casino mobile apps.
These apps have generated more than $225m from state residents over the past five years and have allegedly done so without any legal permission. Brown argues that the companies in his complaint operate "16 electronic gambling apps" and have served more than 150,000 state residents, as per the lawsuit.
In a statement, Brown insists that the companies are alleged to breached specific state laws, namely the Washington Gambling Act and the Consumer Protection Act.
"These companies repeatedly violated Washington law, engaged in deceptive practices, and fleeced Washingtonians out of hundreds of millions of dollars. It is especially troubling to see gambling apps targeting children," Brown said.
The lawsuit points out specific failings the app allegedly committed, including what the complaint claims are underage individuals gambling by failing to verify the age of the player or date of birth.
Brown also questions the use of the native currency these apps use, arguing that Washingtonians have allegedly bought such digital currency worth hundreds of millions of dollars. In Brown’s view, the operators have been trying to recreate casino-style gambling in their apps.
The complaint did note that any winnings thereof could not be cashed out, but had to remain in the app and be used for further gaming purposes only. Brown believes he has a case, citing a 2018 ruling of the Ninth Circuit Court of Appeals, which decided that virtual currencies were a "thing of value," the specific legal term that brings an activity under gambling laws.
Both Aristocrat and Playtika had to settle with the state, but continued operations after that, as per Brown’s complaint.
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