Online Gambling is a pastime that brings about a lot of controversy no matter where it is. We won’t go into where and why since it is a global occurrence without an end to it. In the latest gambling news, three individuals believe Facebook Operating an Illegal Gambling Enterprise is true. Thus, they are taking the social media company to court.
According to them, since Facebook is allowing social casino advertising and casino apps, they are part of the gambling industry. Therefore, they need to be held accountable for their actions. The filing for the lawsuit was made last Friday in the Northern District of California.
Furthermore, the lawsuit states that Facebook is participating in an “illegal internet gambling enterprise. Even though they do not actually have their own gambling software and platform, they are profiting from it. In fact, the lawsuit says they are earning 30% commission from the net losses of real-money gamblers from their site.
Gambling affiliate programs are nothing new in the world of gambling. However, the legality of it in the U.S. depends on the state and the available license for advertisers.
Facebook Operating an Illegal Gambling Enterprise
According to the lawsuit, from the top 12 grossing apps on Facebook, 9 earn are social casinos. These social casinos of course offer online slot machines, and other type of casino games to Facebook users. Furthermore, the lawsuit claims that these apps use Facebook as their payment platform.
Some legal gambling experts are skeptical about the grounds of the lawsuit. This is because they are accusing Facebook of violating the RICO Act and the California’s Unfair Competition law. However, since Facebook does not allow players to cash out their winnings then is it really gambling? Players that win, only win virtual money any real value. Since no investment is obligatory with no real prizes then it is not gambling.
On the other hand, the representing law firm is the Edelson PC Law Firm. They are known for taking on large companies around the world. Thus, they must have some substantial argument for the deciding to take this lawsuit.
This is of course not the first-time large internet companies are being taken to court over gambling. Google and Apple both have come under fire over gambling in the past and in the present. In most of these lawsuits, it is about facilitating gambling on their apps while making a profit from it.