Washington State Attorney General Nick Brown filed a lawsuit this week against Playtika and Aristocrat Leisure for operating unlicensed social casino apps in the state.

According to the AG, the two companies’ 16 social casino apps engaged more than 150,000 state residents in gambling activities every month, taking more than $225 million since September 2020.

The complaint alleges the companies violated the state’s Gambling Act and the Consumer Protection Act, and seeks to halt the unlawful activities and recover all the money Washingtonians have lost to this scheme.

The social casino operators are also alleged to have engaged in deceptive practices in violation of the Consumer Protection Act, with none of the apps asking players for their age or date of birth.

The AG accused Playtika of targeting children with its gambling activities, with its Bingo Blitz app featuring a blue cartoon cat named Blitzy and his pink mouse pal named Moxie. The complaint also alleges that Bingo Blitz has an associated Youtube channel that produces content akin to children’s television.

“These companies repeatedly violated Washington law, engaged in deceptive practices, and fleeced Washingtonians out of hundreds of millions of dollars,” said AG Brown. “It is especially troubling to see gambling apps targeting children.”

The apps include Caesar’s Casino Slots, World Series of Poker, Big Fish Casino, Heart of Vegas, and NFL Superbowl Slots Casino.

In 2006, the state legislature amended the 1973 Gambling Act to make it clear that internet gambling is prohibited under Washington law unless the operator has a license. 

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 is a “thing of value.” 

The AG said that Playtika and Aristocrat should be well aware of this after Playtika settled a consumer class action lawsuit for $38 million over claims of violating Washington law in 2020. Big Fish Games, which is now part of Aristocrat, settled a similar suit. 

Shares in Playtika Holding Corp. (NASDAQ:PLTK) closed 0.29 per cent higher at $3.46 per share in New York Thursday, while shares in Aristocrat Leisure Ltd (ASX:ALL) closed 2.74 per cent lower at A$50.79 per share in Sydney Friday.