Washington AG Sues Illegal Gambling Apps Accused of Taking $225M From Residents
Washington’s attorney general has sued unlicensed gambling app operators, alleging they illegally took more than $225 million from residents.
The Washington State Attorney General’s Office has filed lawsuits against several unlicensed gambling app operators, alleging the companies illegally took more than $225 million from Washington residents through casino-style mobile games that violated state law.
Attorney General Nick Brown announced the actions this week, accusing the operators of running illegal gambling enterprises disguised as free-to-play or entertainment apps while profiting heavily from in-app purchases tied to casino-style gameplay.
The lawsuits seek to halt the operations, recover consumer losses, and impose civil penalties under Washington’s gambling and consumer protection laws.
What the State Alleges
According to court filings, the defendants operated mobile apps that mimicked traditional casino games such as:
- Slot machines
- Blackjack and poker-style games
- Other chance-based casino mechanics
While the apps were marketed as games, the state alleges users were required to spend real money to continue playing, acquire virtual currency, or gain meaningful chances to win prizes, crossing the legal threshold into gambling under Washington law.
Washington prohibits casino-style gambling outside of licensed tribal and regulated gaming operations.
$225 Million Taken From Washington Players
The Attorney General’s Office says its investigation found that the apps collectively generated more than $225 millionfrom Washington users over several years.
Key allegations include:
- Players losing substantial sums of real money
- Apps encouraging repeated spending through psychological triggers
- Misleading representations about odds and winnings
- Lack of consumer protections required of licensed operators
The state argues that consumers were exposed to financial harm without the safeguards present in Washington’s regulated gaming environment.
Violations of State Law
The lawsuits allege violations of:
- Washington’s Gambling Act, which strictly regulates casino-style gaming
- The Consumer Protection Act, prohibiting unfair or deceptive business practices
According to the AG’s office, operating unlicensed gambling platforms not only violates state law but also undermines regulated gaming systems that fund public programs and enforce responsible gambling standards.
Why Washington Is Taking Action Now
Attorney General Brown said the lawsuits reflect a broader effort to crack down on illegal online gambling, particularly as mobile apps make unregulated wagering more accessible.
State officials have expressed concern that:
- Mobile apps blur the line between gaming and gambling
- Consumers may not realize they are participating in illegal gambling
- Unlicensed operators avoid taxes, oversight, and accountability
Washington has some of the strictest gambling laws in the country, especially when it comes to online casino-style games.
Consumer Impact and Recovery Efforts
In addition to shutting down the operations, the state is seeking:
- Restitution for affected consumers
- Civil penalties against the operators
- Injunctions preventing future violations
The Attorney General’s Office has encouraged Washington residents who believe they lost money through illegal gambling apps to monitor the case and follow updates regarding potential restitution.
Part of a Broader Enforcement Trend
Washington’s action fits into a wider national trend of states increasing scrutiny of unlicensed gambling apps, sweepstakes-style casinos, and mobile platforms that operate outside traditional regulatory frameworks.
Regulators in multiple states have raised concerns that such apps:
- Exploit legal gray areas
- Target vulnerable consumers
- Bypass responsible gambling protections
Unlike regulated casinos and sportsbooks, unlicensed apps are not required to verify age, offer self-exclusion tools, or contribute to problem gambling resources.
What Happens Next
The lawsuits will now move through Washington courts, where judges will determine whether the apps violated state law and what remedies are appropriate.
Potential outcomes include:
- Court-ordered shutdowns of the apps in Washington
- Financial penalties and restitution
- Precedent for future enforcement actions
State officials say the cases send a clear message that illegal gambling, regardless of whether it is offered through a mobile app, will not be tolerated.
The Bigger Picture
As online gaming and app-based entertainment continue to evolve, regulators are increasingly focused on ensuring that gambling laws keep pace with technology.
For Washington, the lawsuits reinforce a long-standing policy stance: casino-style gambling must be licensed, regulated, and accountable.
For consumers, the cases serve as a reminder to understand how apps make money and whether the games they play are legal in their state.
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