Californian Sues Ryan Seacrest for Advertising Illegal Gambling

Ryan Seacrest is facing legal trouble over his endorsement of an online casino platform. A California woman claims his promotion contributed to her financial losses. 

The Sweepstakes Nuance

The lawsuit, filed by Aubrey Carillo, accuses the “American Idol” and “Wheel of Fortune” host of advertising ChumbaCasino.com, which she says is operating illegally in the state.

According to TMZ, which first reported the lawsuit, Carillo alleges that Chumba’s business model violates California gambling laws and that Seacrest’s involvement has helped normalize and spread online gambling, particularly to vulnerable groups, including minors and those struggling with addiction.

While Carillo maintains that Chumba is unlawful in California, the legal status of the platform tells a more nuanced story. 

ChumbaCasino.com is run by Virtual Gaming Worlds (VGW), an Australia-based company established in 2012. Unlike typical online casinos, Chumba operates under a sweepstakes model. 

This approach allows users to play games using virtual currencies, with any real-world winnings categorized as sweepstakes prizes rather than gambling earnings.

This model, expected to lead to double the number of sweepstake casinos in the next two years, has made it possible for Chumba to function in most U.S. states, including California, without needing the kind of gambling licenses traditional online casinos require. 

However, it is blocked in a handful of states, including Connecticut, Michigan, Montana, Nevada, and Washington, and under severe scrutiny in states like New York. 

In California, while real-money online gambling is prohibited, sweepstakes casinos like Chumba are allowed because they don’t involve direct cash wagering. 

Instead, players purchase virtual “Gold Coins,” and can receive “Sweeps Coins” as a bonus, which can be used to win prizes redeemable for cash.

“Just a Nuisance Lawsuit”

Seacrest began working with VGW through a 12-month partnership announced in December 2023. Details of the financial agreement were not made public. 

The lawsuit not only targets Seacrest but also VGW, and it demands that the website be barred from operating in California. It also seeks to prevent Seacrest from making any future income tied to the platform.

A source quoted by TMZ dismissed the complaint, calling it “just a nuisance lawsuit.”

According to a Chumba Casino spokesperson in an interview for TMZ, the venue “operates its social casino in strict compliance with all applicable laws and regulations.”

The representative also explained the lawsuit “has no merit”, adding “Chumba will vigorously defend its legal right to operate its business.”

“Our brand ambassador Ryan Seacrest is not involved in the operation of Chumba’s business, and it is unfortunate that he has been unfairly targeted as part of this suit.”, the rep added.