Washington attorney general files suit against illegal gambling apps

Washington Attorney General Nick Brown has filed a sweeping lawsuit against several companies that run unlicensed casino-style gambling apps, alleging they illegally took more than 225 million dollars from Washington residents since 2020.

What the lawsuit claims

• The suit targets major operators including Playtika and Aristocrat, which together run 16 casino-style apps such as Slotomania, House of Fun, Caesars Casino Slots, World Series of Poker, Bingo Blitz, Big Fish Casino, Jackpot Magic Slots, Lightning Link Casino, and others.

• State lawyers say these apps are illegal because they sell virtual chips or coins that players wager on games of chance (slots, poker, scratchcards) for the chance to win more virtual currency, which Washington law treats as a “thing of value.”

• The complaint alleges violations of Washington’s Gambling Act and Consumer Protection Act and seeks to shut down the apps in the state and recover money lost by players.

Scope of the alleged harm

• More than 150,000 Washington residents are said to use these apps each month.

• The Attorney General’s Office estimates Washingtonians have lost over 225 million dollars buying virtual currency in these apps over about the last five years, with some individuals allegedly losing hundreds of thousands of dollars.

Concerns about children and deceptive practices

• The lawsuit says the apps generally do not verify users’ ages and fail to ask for birth dates, which the state characterizes as a deceptive practice.

• Playtika’s Bingo Blitz is specifically called out for using cartoon characters, map-style progression, and a YouTube channel with content resembling children’s TV, which the state argues appeals to and targets minors.

Legal background and prior cases

• Washington tightened its laws in 2006 to ban most internet gambling unless the operator is licensed in the state.​

• A 2018 Ninth Circuit decision involving Big Fish Casino held that virtual chips in such apps are a “thing of value” under Washington law, bringing social casino apps within state gambling rules.

• Playtika and Big Fish previously settled private class-action cases over similar allegations, including a 38 million dollar settlement by Playtika and prior settlements involving Big Fish Casino, but the Attorney General now argues the companies continued the same conduct.

What the state is asking the court to do

• Stop the companies from offering these apps as currently operated in Washington (effectively shutting down or radically changing their Washington access).

• Force the companies to disgorge or refund the money Washington residents spent in the unlawful gambling, potentially returning more than 225 million dollars to players.

As an example of how this plays out for a user, someone who spends real money to buy chips in an app like Slotomania or Big Fish Casino, loses them on slots, and then buys more to keep playing is exactly the kind of “illegal internet gambling” transaction the lawsuit aims to stop and claw back under Washington law.