Kentucky Lawsuit Claims Aristocrat’s Social Casinos Are Illegal Gambling

Social casino games are a popular form of entertainment that is not classified as gambling. Such games allow players to engage in casino-style games by using virtual currency.

While that currency can be purchased with real money, it cannot be converted back into real money. At the same time, social casino games winnings can be used for more spins for example.

Despite the niche status of social casino games, some jurisdictions that have strict gambling-related laws recognize them in the same way as gambling products. In one recent lawsuit filed against a leading global gaming content and technology company, a Kentucky resident argues that social casino games represent illegal gambling.

The legal claim was filed with the Kentucky Western District Court earlier this month by plaintiff James Scott Tipmore. The lawsuit names Aristocrat Leisure as the defendant and alleges that the company’s social casino games represent illegal gambling.

The lawyers representing Tipmore, who were recently quoted by NEXT.io argued that the definition of illegal gambling in Kentucky includes social casino games. This is because per the established rules, it is illegal to win “something of value,” the lawyers explained.

Moreover, Tipmore alleged that businesses such as Aristocrat took advantage of modern technology such as computers and smartphones to expand the reach of their illegal casino games. The Kentucky resident argued that companies such as Aristocrat used this technology to “smuggle illegal slot machines into the homes and workplaces of Americans, where gamblers can satisfy their gambling addiction 24 hours a day, 365 days a year, without having to leave their homes or places of work.”

Social Casino Games Are Misleading, Argues Plaintiff

According to Tipmore, the definition of social casino games is misleading as the applications offer slot machine gambling. In his legal claim, the Kentucky resident said that thanks to smartphones, the applications can be reached at the touch of a screen and in people’s pockets everywhere.

“These new slot machine applications, misleadingly referred to as ‘social casino games,’ are nothing more than slot machines that can be carried in one’s purse or pocket,“

reads the lawsuit filed by James Scott Tipmore

This is not the first time a lawsuit in Kentucky has been filed under the Loss Recovery Statute that permits gamblers who incurred losses to try to recover their funds from gambling businesses. Several years ago, Stars Interactive, one of Flutter Entertainment’s brands, was subject to a similar action in the state which resulted in a $300 million settlement.

Elsewhere, Aristocrat’s social casino games are subject to another lawsuit. A class action claim filed with the Federal Court in Australia in mid-July alleged that the supplier’s social casino games breach the country’s gambling laws.