Deputy Editor
Washington state announced on Tuesday that it has filed suit against “illegal gambling apps that have taken more than $225 million from Washingtonians.” A World Series of Poker-branded free poker app is among the named defendants.
The WSOP Poker app is not to be confused the company’s real-money online poker app, WSOP.com. Rather, it’s a “freemium” product — its games are free to play, but many players spend real money to purchase in-game currency that has no real-money value.
Playtika owns and runs the free WSOP app. WSOP’s only involvement with the game app is licensing its name and brand.
Popular retail casino game manufacturer Aristocrat, which also owns a number of freemium games, was the other primary defendant in the suit.
“The main companies, Playtika and Aristocrat, do not have licenses to operate their gambling apps in Washington, yet combined they operate 16 apps that more than 150,000 Washingtonians use to engage in gambling activities every month,” the state announced in a press release.
Washington’s lawsuit requests an injunction to stop Playtika and Aristocrat from operating in the state. Additionally, Washington has asked for restitution of “all money Washingtonians have lost at illegal gambling games” and “a civil penalty in the amount of $7,500.00 for each and every violation of Washington’s Consumer Protection Act.”
Free Games Can Still Be Illegal Gambling in Washington
Washington has some of the strictest gambling laws of any state in the country. When describing each game, the complaint notes that players cannot exchange their chips for real currency. However, Washington law forbids even games without cash prizes, classifying them as illegal gambling because the play money “has value” in that it is available to purchase and necessary to enjoy the games.
From the state’s press release:
The definition of gambling under Washington law involves wagering a ‘thing of value.’ The Ninth Circuit Court of Appeals ruled in 2018 that virtual currency in casino apps are a ‘thing of value.’ Playtika and Aristocrat should be well aware of this. In 2020, Playtika settled a consumer class action lawsuit for $38 million over claims of violating Washington law, while Big Fish Games (which is now part of Aristocrat) settled a similar suit.
However, these companies have continued to operate in Washington after this 2018 ruling and also settling prior class actions.
Following past settlements, social apps have attempted to skirt that particular legal argument by adding game modes that remain always available even when the player is out of virtual currency. However, the state alleges these companies have continued to operate there and that they remain in violation despite the changes. A PokerScout contact confirmed that he was able to download and play the WSOP-branded app while located in Washington.
According to the lawsuit, Washington residents have spent approximately $151 million on Playtika’s free games since September 2020. They have spent a further $74 million on Aristocrat’s games.
Some Washington Residents Spent Six Figures on Free Slot and Poker Games
Some of the sums allegedly spent by Washington residents on the Playtika and Aristocrat apps were staggering. In several cases, these purchases totaled more than $100,000.
- “User 1020906: regularly spends over $500 a day, and when all of those $500+ days are added together they total $441,187.62”
- “User 103109960: spent $208,331.55 over the course of one year, which translates to $17,361 per month on average”
- “User 10088203: spent $175,349.97 over the course of one year, which translates to $14,612.50 per month on average”
- “User 22232351: made 2,019 purchases of virtual chips over approximately 45 months from 2020 to 2024, totaling $193,719.81. This is a monthly average spend of $4,304.88”
- “User 21045402: spent $109,542.11 over the course of approximately 39 months, making 1,115 purchases and a monthly average spend of $2,808.77. In the last month before they quit playing, November 2023, this player spent $7,788.13 in just one month”
Much akin to some forms of real-money gambling, these ultra-high-value “whales” account for a large chunk of the companies’ revenue. And, much like real-money whales, the lawsuit alleges that Playtika sent gifts and sweepstakes offers to customers to entice them to continue purchasing and playing on its apps.
Washington Lawsuit Alleges Free Gambling Apps Accessible to Children
While the WSOP app says it’s only available to those 18 or older, the Washington suit alleges that it welcomes players of any age.
Defendants’ Casino Apps do not ask for the age or date of birth of any of their players, nor do they ask for or require any documentation or proof of a user’s age and/or identity. Anyone of any age can access Defendants’ Casino Apps to participate in gambling activities.
Further, only one of Playtika’s Casino Apps, Monopoly Poker, gives notice regarding an age-use restriction on the launch page when opening the application.
Additionally, Washington’s lawsuit alleges that one game, Bingo Blitz, specifically targets minors via kid-friendly cartoon characters.
Washington Attorney General Nick Brown called such targeting of minors “especially troubling.”
Image credit: Logan Ingalls/Flickr (license)
