Key points:
- Boyle alleges that Pulsz operates as an illegal gambling website, and if successful in his lawsuit, could cease the site’s operations
- Sweepstakes has gained notable popularity, but also drawn scrutiny from regulators and lawmakers around the country
Dennis Boyle has filed a lawsuit in the state of California against Yellow Social Interactive, which operates online sweepstakes casino website Pulsz. The case represents the first in California to target sweepstakes offerings.
Boyle alleges in his lawsuit that Pulsz operates as an illegal gambling website, also filing for public injunctive relief. If successful in court, Pulsz could be compelled to cease operations entirely.
The complaint filed against Yellow Social Interactive alleges that Pulsz’s operations constitute gambling and that the company is, in effect, conducting an online casino without a proper license. According to the lawsuit, Pulsz violates California’s stringent regulations on gambling, including the state’s ban on most forms of online gambling.
Sweepstakes offerings have gained notable popularity, but also drawn scrutiny from regulators and lawmakers across the US. On August 21, the American Gaming Association (AGA) released a memo on potential sweepstakes gaming threats.
The Association stated in the memo that there are “an increasing number of entities that have intentionally designed business models to circumvent or exploit ambiguity in state gambling laws and the regulatory frameworks within which the legal gaming industry operates.”
Good to know: Launched on September 5, the Social and Promotional Gaming Association provides stakeholder information and advocates for the responsible operation of social and promotional games
“The lack of regulatory oversight presents many risks for consumers as well as the integrity and economic benefits of the legal gaming market through investment and tax contributions. These sweepstakes-based operators have weak (if any) responsible gaming protocols and few, if any, self-exclusion processes,” AGA said.
“There is no independent product testing to ensure basic fairness to players, and although many claim players must be 18+, age verification procedures, if they exist, are often questionable. The opaque nature of these operations also presents a prime opportunity for illegal activity and enriching bad actors.”
Boyle’s case status is currently “not classified by court,” indicating that the court has yet to assign it to a specific category or schedule hearings.
