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Gambling in the USA

Four gaming companies hit with online gambling lawsuits over ‘free-to-play’ casino games

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gaming companies hit with online gambling lawsuits
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A spate of lawsuits filed over the last few days target online gaming companies, alleging their digital casino offerings constitute illegal gambling under Washington state law.

These lawsuits follow a ruling last month from a federal appeals court that found Big Fish Games’ casino games violate Washington state law governing online gambling. The latest lawsuits, four in total filed late last week and early this week, target “free-to-play” casino games from Huuuge Games, DoubleDown Interactive, High 5 Games and Playtika.

Each company offers a series of games typically found in casinos, like slots, blackjack and roulette, that use virtual chips. The chips have no monetary value themselves, but players can only play as long as they have chips. If they run out, they have to wait until the game offers more free chips or they can buy hundreds of thousands of chips for a couple bucks and jump back in.

These cases, along with the Big Fish case that preceded them, could have major implications for the casual games market. A lot of popular games today use in-app purchases as a revenue driver, and it appears there is a burgeoning backlash against that.

The suits, filed in U.S. District Court in Seattle and Tacoma, use similar language and arguments in their filings. Three are from the same plaintiff, and the same law firm and lawyers — Janissa A. Strabuk and Cecily C. Shiel of Seattle-based Tousley Brain Stephens — lead the legal teams in the lawsuits.

We’ve reached out to the companies and lawyers involved in the lawsuits and will update this story if we hear back.

The suits center around the same arguments as the Big Fish case. They allege that the chips, though they are not worth any money on their own, represent “something of value,” a vague clause within Washington state law governing gambling. The chips have value, the suits argue, because they are vital to continue playing the game.

Double Down Casino games are illegal gambling games because they are online games at which players wager things of value (the chips) and by an element of chance (e.g., by spinning an online slot machine) are able to obtain additional entertainment and extend gameplay (by winning additional chips),” according to one of the suits.

The plaintiffs seek class action status for their lawsuits. They are also asking that the gaming companies be barred from “continuing the challenged conduct” and for damages.

Sean Wilson, the plaintiff in three of the lawsuits claims to have spent only about $20 on chips for casino games from Huuuge, High 5 and Playtika. Plaintiff Adrienne Benson claims to have lost about $1,000 on DoubleDown games.

Casual games like the casino offerings are big business. The lawsuits cite a figure from JP Morgan saying that these free “games of chance generated over $3.8 billion in worldwide revenue,” in 2016, with expected growth of 10 percent annually.

Online gambling lawsuits are fairly common, from small mobile game-makers to gaming giants like Valve. The game companies have come out victorious in past cases, but the Big Fish ruling last month was an exception.

That broad “something of value” phrase in Washington law made the difference in the Big Fish case. There are no federal laws governing online gambling, meaning each case is subject to a different set of state laws.

The similarity between micro-transaction based games of chance and games of chance found in casinos has caused governments across the world to intervene to limit their availability,” according to one of the lawsuits. “Unfortunately, such games have eluded regulation in the United States. As a result, and as described below, Defendant’s Huuuge Casino has thrived and thousands of consumers have spent millions of dollars unwittingly playing Defendant’s unlawful games of chance.”

The Big Fish case still has a long way to go before it’s settled, but it appears that the floodgates have opened for people to challenge mobile gaming companies under Washington law. Only one of the gaming companies named in the suit has a Washington presence.

Venkat Balasubramani, an attorney at Focal PLLC who is not involved in any of these cases but is representing gamers in a California case focused on violations of false advertising and consumer laws, told GeekWire following the Big Fish ruling last month that the lack of federal laws throws a wrench into this online gambling debate.

The fact that it’s state law is a wrinkle because it’s not easy for Washington to reach outside its borders and enforce Washington law against foreign companies,” Balasubramani said. “That’s always a tricky issue in the legal arena.”

 

Source: geekwire.com

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Gambling in the USA

Gaming Americas Weekly Roundup – October 28-November 3

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Welcome to our weekly roundup of American gambling news again! Here, we are going through the weekly highlights of the American gambling industry which include the latest news and new partnerships. Read on and get updated.

Latest News

Elray Resources Inc. has announced a significant milestone in the company’s growth strategy. The company has completed the sale of proprietary technology to 180 Life Sciences Corp. (NASDAQ:ATNF), a NASDAQ-listed company in exchange for preferred stock convertible into a 40% stake in ATNF and warrants to purchase 3 million shares of ATNF common stock, the conversion/exercise of which is subject to stockholder approval. The technology stack contained within Elray’s technology package will assist ATNF in launching an iGaming Blockchain casino.

PrizePicks, the largest daily fantasy sports operator in North America, has announced that it has been awarded Daily Fantasy Sports Operator Licenses in Delaware and Missouri. The company will launch Arena, its innovative peer-to-peer fantasy sports contest, in both states. With these new state launches, Arena will now be available in 15 states across the US.

The Pennsylvania Gaming Control Board (Board) unanimously voted to renew the Category 2 stand-alone casino license of Wind Creek Bethlehem LLC, operator of Wind Creek Bethlehem casino in Northampton County. In making the decision, the Board determined that Wind Creek Bethlehem LLC had fulfilled the obligations under its previously approved casino operator’s license and therefore qualified to have its license renewed for an additional five-year period.

Aristocrat announced that the company was the first international slot and online technology company to be granted a Gaming-Related Vendor license by The General Commercial Gaming Regulatory Authority (GCGRA), the federal entity overseeing commercial gaming activities in the United Arab Emirates (UAE). This announcement grants Aristocrat the ability to provide the company’s land-based electronic gaming machines (EGMs) and online games and technology solutions to commercial gaming operators licensed by the GCGRA.

Partnerships

SCCG Management, a leading global advisory and consulting firm in the gambling industry, has entered into a strategic partnership with Slot Machines Unlimited, a premier provider of refurbished slot machines and gaming equipment. The partnership between SCCG Management and Slot Machines Unlimited leverages both companies’ strengths: Slot Machines Unlimited’s expertise in refurbished gaming equipment and SCCG’s deep industry insight, global network and strategic growth capabilities. The collaboration will enhance Slot Machines Unlimited’s international sales and service operations, ensuring gaming establishments worldwide have access to high-quality slot machines and support.

Galaxy Gaming Inc. has announced that the Galaxy Operating System (GOS) is now live on over 50 ships worldwide with Carnival Corporation & PLC, the world’s largest leisure travel company. Since the installation, tables powered by GOS have awarded over $5 million in jackpot payouts to players. GOS is the jackpot progressive system for all Carnival Corporation ships, including Carnival Cruise Line, Holland America Line and Princess Cruises. Launched in 2024, GOS is the next-generation game management system developed by the industry’s leading table game experts.

The hottest new game from Aristocrat Gaming, Phoenix Link, is now live on casino floors, with Yaamava’ Resort & Casino being the first in North America to offer the highly-anticipated game. As the next evolution of the international hit game, Dragon Link, Phoenix Link features player-favourite mechanics from top games with all-new themes, features and bonuses.

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Gambling in the USA

Gaming Americas Weekly Roundup – October 21-27

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Welcome to our weekly roundup of American gambling news again! Here, we are going through the weekly highlights of the American gambling industry which include the latest news and new partnerships. Read on and get updated.

Latest News

Bally’s Interactive, the digital and sports betting division of Bally’s Corporation, announced the official launch of the Bally Bet Sportsbook app in Tennessee, marking its expansion into the tenth state. This milestone comes on the heels of recent successful Bally Bet launches in Massachusetts and Maryland. Sports enthusiasts across the Volunteer State can now revel in the comprehensive offerings of the Bally Bet sportsbook app. With a wide array of betting options, including spread, money line and total bets, as well as in-game betting and same game parlays, Tennessee sports fans will have an unparalleled wagering experience.

ESE Entertainment Inc., a gaming company that provides a range of services to leading video game developers and publishers, has announced that it has acquired Bombee Global Entertainment (Bombee Americas), the North American arm of Bombee Event Production AB, (Bombee), a global production company specialised in live production, special effects, broadcast and event management for the gaming sector. Bombee has successfully collaborated with ESE to bring its premier event production services and world class customer service to North America and beyond. The North American arm of Bombee, Bombee Americas, will continue to grow and scale in this new organisational structure under ESE, while maintaining its entire team and global support.

Matthew Wantman has become the overall champion of the PokerGO Tour PLO Series II presented by PLO Mastermind. Wantman secured the prestigious honor after an impressive showing at PokerGO Studio in Las Vegas, outperforming a talented field of the best PLO players in the world to earn the $10,000 PGT Passport bonus. The PGT PLO Series II featured a series of high-stakes pot-limit Omaha tournaments. Wantman’s consistent performance set him apart from the competition and solidified his spot atop the leaderboard.

Partnerships

SYNOT Games has announced its further expansion into the Colombian market through a partnership with BetPlay. This alliance highlights SYNOT Games’ commitment to increasing its presence in Latin America and providing its engaging and innovative games to a wider audience. Through this partnership, BetPlay’s online platform will feature a curated selection of SYNOTGames’ top-performing titles, including fan favourites like Aztec Jaguar, Diamond Fever, Realm of Lions.

Internet Sports International, a global provider of turnkey race and sportsbook software solutions, announced its partnership with the We-Ko-Pa Casino Resort in Fort McDowell, Arizona. Through this consultancy, ISI is powering the casino’s sportsbook and retail sports wagering operations on its gaming floor with its award-winning system. WKP Sportsbook is currently operating, allowing patrons to elevate their excitement by wagering on their preferred sporting events with up-to-the-minute odds and live action. The automated sportsbook kiosks provide access to a wide range of sports propositions for both the beginner and expert bettor.

Aristocrat Gaming, a leading designer, manufacturer and distributor of regulated slot games, announced it is now a promotional partner for Princess Cruises, one of the world’s most iconic cruise lines. Through this exciting collaboration, Aristocrat Gaming will design innovative gaming experiences for guests onboard Princess ships as well as create promotions with land-based casinos that offer Princess cruises as rewards.

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Gambling in the USA

Gaming Americas Weekly Roundup – October 14-20

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Welcome to our weekly roundup of American gambling news again! Here, we are going through the weekly highlights of the American gambling industry which include the latest news and new partnerships. Read on and get updated.

Latest News

Konami Gaming’s President & Chief Executive Officer Steve Sutherland has received the Association of Gaming Equipment Manufacturers’ (AGEM) 2024 Jens Halle Memorial Award during the official awards ceremony at the Global Gaming Expo (G2E) Las Vegas. He was selected for excellence in commercial gaming professionalism, as the embodiment of business success, attention to detail, evident humanity, willingness to “go the extra mile” and long-lasting dedication to the health of the industry as a whole. Investing more than three decades of his career in the gaming supplier sector, Steve Sutherland is a central figure and longtime advocate in responsible gaming industry advancement.

RotoUnderworld, a technology company that analyzes statistical data for fantasy sports, announced that it has raised $1.5 million in a pre-seed funding round to build the next-generation fantasy gaming platform. The round was led by iGaming mavens and technology investors recognising the company’s hyperactive user base and mobile development capabilities. RotoUnderworld’s new FastDraft app is revolutionising the iGaming sector with high-engagement fantasy contests that appeal to both low and high-volume customers.

Scientific Games announced the appointment of Patrick Homm as Vice President, Systems Engineering for the company’s international lottery systems technology. Patrick Homm brings over a decade of experience in innovative gaming systems, software engineering, technology leadership and large-scale systems architecture to his new role.

FanDuel, North America’s premier online gaming company and an Official Sports Betting Partner of the National Basketball Association (NBA), is tipping off the NBA season by bringing back a promotion to provide fans with a three-month subscription to NBA League Pass. Fans who opt-in can also view an enhanced broadcast experience featuring live odds from FanDuel during NBA League Pass games.

Partnerships

Community Gaming, the leading esports platform for automated tournament payouts and sponsor of the Mobile Legends: Bang Bang’s professional league for the Latin America Region, MPL LATAM, now supports developing esports communities in Latin America in collaboration with Moonton. This partnership is a significant boost to CG’s existing advantages associated with its grant programme, a partner-backed initiative to provide organisers with economic resources based on the performance and growth of their local gaming communities.

WPT Global has partnered with Triton Poker Series as the official sponsor of the renowned Triton Poker Super High Roller Series. This partnership ushers in a new era of growth for the Triton Poker Super High Roller Series, as it continues its journey as a leader in high-stakes tournament poker. WPT Global – now offers players the exclusive opportunity to qualify for Triton Poker Super High Roller Series events, expanding accessibility to one of the poker world’s most prestigious tournament circuits.

SCCG Management, a global leader in Tribal gaming advisory and management services, has announced a strategic partnership with Steelhead Compliance Solutions, a leader in tribal gaming compliance and regulatory affairs. This partnership aims to create significant opportunities for tribal nations by connecting them with SCCG’s expansive network of over 200 affiliated gaming companies and service providers. Together, SCCG and Steelhead will work to strengthen tribal gaming operations, enhance regulatory compliance and uphold tribal sovereignty.

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