Washington sues 'casino app' operators over social casino offerings

The operation of "social casino" platforms in Washington has come under formal legal scrutiny after the state's attorney general, Nick Brown, brought a lawsuit against Aristocrat Gaming and Playtika, alleging that the companies are offering gaming products that violate Washington law. The complaint asks a state court to issue an injunction against the social gaming products and impose collections of damages on the targets.

Barring a settlement, Brown is asking the King County Superior Court for an affirmative declaration that Aristocrat's and Playtika's online gaming products violate "the Gambling Act and the Consumer Protection Act" of Washington. A release from Brown's office also states that he is looking to "recover all the money Washingtonians have lost to this scheme," which he estimates to be over $225 million.

Brown also cites a 1973 law that makes offering games of chance illegal in Washington without a license, including all of the top online casino options in other US states. Furthermore, he states that a 2018 federal court ruling defined gambling as risking "a thing of value" and the state's contention that the digital currency available in the games that Aristocrat and Playtika offer constitutes "a thing of value."

There are multiple entities among the targeted apps and sites in the complaint.

The complaint doesn't just allege that these apps and sites represent illegal gaming in Washington. Brown also argues that Aristocrat and Playtika are targeting Internet users younger than the state's minimum age for gaming.

Brown's complaint alleges that the named platforms target children with their marketing. The lawsuit specifically points to animated characters on Bingo Blitz and content on Bingo Blitz's YouTube channel that Brown characterizes as "content akin to children's television."

Brown estimates that over 150,000 Washington residents use these products on a monthly basis. While many sweepstakes casino providers geofence Washington out of their potential customer bases, platforms labeled as "social gaming" have not taken such a hardline stance.

In Washington, there are no licensed pathways for online casino games for real money or online sports wagering. Legal gambling is only available via physical tribal casinos and a handful of regulated horse racing tracks, while fastest payout online casinos like those in Pennsylvania, Michigan, New Jersey, and West Virginia do not exist.

However, those tracks offer no gaming beyond pari-mutuel wagering on horse races. There has been no movement toward expanding the current landscape to allow Washingtonians to redeem promotions like the Borgata Casino bonus code.

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If successful, Brown's lawsuit could further entrench tribal control over gaming in Washington, meaning that any future expansion would have to go through those authorities. The court could also reinforce that social gaming is illegal in Washington.

Derek Helling