Online Sweepstakes Casinos Face Legal Torrent: Five Class Actions Hit in Just 48 Hours

The sweepstakes casino industry just can’t seem to catch a break these days. After the massive news about California approving AB 831, which effectively bans sweepstakes casino operations starting January 1st, 2025, a series of lawsuits have been filed against popular operators in different states. 

Daniel Wallach, in a LinkedIn post, identified five class action suits in just 48 hours, targeting the following defendants: FSG/Schorr in Utah, High 5 Games in Ohio, Stake/Drake in Missouri, Yellow Social Interactive/Pulsz in Utah, and  Money Factory in Utah. This wave of lawsuits reflects the tightening regulations in the sweepstakes casino space, pushing operators against the wall.

FSG/Schorr (Utah)

In a class action lawsuit filed in a Utah court, the plaintiff argues that FSG Digital and its co-founder, Seth Schorr, have been running an illegal sweepstakes casino operation through its “JefeBet” brand. According to state laws, players who lost money through illegal gambling may recover twice the amount of their financial losses. 

The complaint further explains that while FSG markets JefeBet as a legitimate online business, it’s actually a risky platform that offers unlawful games and services.

High 5 Games (Ohio)

In Ohio, Daryl Simonich has filed a class action suit against High 5 Games LLC. Simonich also represents other players who have lost money while playing sweeps-style casino games on the High 5 website. 

Filed last October 28th, Simonich and other complainants argue that the operator has violated state laws through its Terms and Conditions.

Yellow Social Interactive/Pulsz (Utah)

Bailey Gardner is suing Pulsz for running an unlawful sweepstakes casino operation.

Money Factory (Utah)

Nathan Walker has filed another lawsuit in the Utah court, alleging that The Money Factory LLC is also running an unlawful sweepstakes casino operation. Walker also represents the interests of other local players who have wagered and lost money on the platform.

Stake/Drake (Missouri)

Rapper Drake and influencer Adin Ross are now caught in the sweepstakes casino saga due to their association with Stake US. A class suit filed in the Jackson County Circuit Court alleges that Stake US has been running an illegal online casino. And since Drake and Ross partner with Stake in advertising and promoting the games, they also become respondents in the case.

What Can We Learn from These Five Lawsuits?

All five class lawsuits have been filed in less than 48 hours in Utah, Ohio, and Missouri, and share a common theme, they’re targeting the alleged unlawful operations of sweepstakes casinos. Also, some of the plaintiffs seek to recover their losses, as allowed under certain state laws.

Missouri’s lawsuit against Drake and Ross is slightly different from the other four since it highlights the growing role of influencer marketing. However, the case puts Drake and Ross on defense for their involvement in an illegal business enterprise.

REFERENCES:

• Daryl Simonich's class action suit
• Bailey Gardner’s complaint in Utah
• Utah Gambling Law
• Daniel Wallach’s LinkedIn page