State AG seeks to end 'ocial casino' apps, despite previous gambling guidance

Headtopics
Washington Attorney General Nick Brown is suing to shut down 16 social casino apps and recover $225 million.

Summary

Washington Attorney General Nick Brown has filed a lawsuit against Playtika, Aristocrat, and affiliated companies, seeking to shut down 16 casino-style mobile applications and recover over $225 million. The state alleges that these apps constitute illegal gambling because players wager real money for virtual currency, even though winnings cannot be cashed out. This legal action hinges on Washington's broad statutory definition of a "thing of value," which includes the privilege of continued play.

The lawsuit highlights significant social concerns, alleging that the apps have caused severe financial and emotional harm to residents, including debt and mental health struggles. While the companies argue that their games are social entertainment because they lack direct cash-out features, the state contends that the ability to use virtual winnings to place more bets creates an illegal gambling loop.

The case is expected to take two to three years to resolve and could set a major precedent for the legality of virtual goods and in-game currencies in video games.

(Source:Headtopics)

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