California resident Aubrey Carillo filed a lawsuit against the companies associated with operating ChumbaCasino.com, an online sweepstakes casino, and Ryan Seacrest. Seacrest, host of the television show “Wheel of Fortune” and “American Idol,” has been an official celebrity sponsor of Chumba Casino.
Key Takeaways
- Along with Seacrest, the lawsuit calls out Australian-based sweeps provider VGW Holdings and its associated businesses. VGW is the owner of the sweeps sites Chumba Casino, Luckyland Slots, and Global Poker.
- More state regulators and lawmakers are cracking down on unlicensed sweepstakes operators.
The lawsuit, filed in the Superior Court of the State of California for the County of Riverside, alleges that Seacrest is promoting illegal gambling through his social media posts and related content on ChumbaCasino’s website.
Can I buy a vowel?
Carillo is seeking an injunction to shut down the sweeps website in California and to prevent Seacrest from profiting from the unlicensed casino. The lawsuit further alleges that Seacrest is contributing to the rise of gambling addiction.
The suit claims, “Seacrest has a reported net worth of $450M and has had estates or penthouses in Beverly Hills, Napa Valley, Bel-Air & Manhattan. Someone this blessed in life does not need to hurt people for more money, but Seacrest does just that by serving as the official celebrity endorser.”
This isn’t the first California lawsuit targeting sweeps. In March, a lawsuit was filed against the sweepstakes operator Stake. Meanwhile, other states are attempting to beef up laws to prohibit sweepstakes gambling.
Sweepstakes gambling sites allow customers to wager with free coins. Additional coins, however, can also be purchased with real money and/or cryptocurrency and exchanged for cash and prizes. These types of online casinos, which are unlicensed and unregulated, have recently come under fire from lawmakers and regulators.
Just this week, the Louisiana State Senate unanimously passed a bill banning sweeps. Other states with sweeps banning bills in the works include Nevada, New York, and Connecticut.
When his Chumba Casino endorsement deal was announced, Seacrest said, “Who doesn’t love games? I’m now excited to announce my partnership with Chumba to bring the fun home all year long, making it accessible and easy to all.” Seacrest has yet to make an official statement about the case.
