First Sweepstakes Lawsuit Filed in California Against Pulsz.com

A recent lawsuit filed in Orange County Superior Court has brought new focus to the legality of sweepstakes-style gambling platforms in California. Dennis Boyle, the plaintiff, initiated this action against Pulsz.com, a website owned by Yellow Social Interactive Ltd., alleging that the platform conducts unlawful gambling activities. The suit seeks a public injunction to cease the site’s operations in California, arguing that Pulsz functions as an unlicensed online casino.

Pulsz.com allows s to engage in casino-type games such as slots and blackjack by purchasing virtual coins. These coins, which the platform claims are without real-world value, allow players to participate in various games. Additionally, s receive another form of currency that can potentially be redeemed for cash or prizes under specific conditions, creating a framework that the site insists does not constitute real-money gambling.

Legal Loophole Debate in Sweepstakes Operations

Sweepstakes casinos like Pulsz often defend their legality through a dual-currency model, asserting that it separates their services from traditional gambling. However, Boyle’s lawsuit claims this structure merely exploits a legal loophole to mask genuine gambling activities. The complaint argues that by bying California’s strict online gambling regulations, Pulsz is effectively running an online casino without authorization, thus violating state laws.

This California case adds to a wave of Critics argue that these platforms, under the guise of “sweepstakes,” often lure vulnerable individuals, including younger adults and those at risk of gambling addiction, by portraying gameplay as an easy path to winnings.

Broader Implications for the Sweepstakes Casino Industry

This lawsuit could set a significant precedent for the status of sweepstakes casinos in California, especially if the court finds in favor of the plaintiff. California, known for its stringent stance on gambling, could influence how other states address sweepstakes platforms. With California’s considerable influence, industry stakeholders are closely monitoring the case’s outcome, which could prompt further legal scrutiny and legislative action against similar businesses operating nationwide.

If the lawsuit is successful, it may lead to additional restrictions on sweepstakes casinos, compelling operators to comply with stricter standards or cease operations entirely. Boyle’s legal team is also reportedly pursuing similar claims against other companies, like VGW’s Chumba Casino, highlighting an ongoing battle over the legality of these platforms in California and beyond.

Source:

WALLACHLEGAL. (2024, November 5). California has its first sweepstakes casino lawsuit. The operator of Pulsz.com was sued in Orange County Superior Ct. [Tweet]. X.