Washington State AG Files Lawsuit To Shutter Sweepstakes Casinos

Feb 4th, 2026 11:07 AM EST

(USA TODAY)

Washington just became the latest state to step into the growing legal pile-on against so-called “sweepstakes casinos.”

Attorney General Nick Brown filed a sweeping lawsuit targeting several companies accused of operating unlicensed casino-style gambling apps in violation of state law — a move that fits squarely into a broader, accelerating trend of states cracking down on gray-market gambling platforms.

According to the complaint filed Tuesday, companies including Playtika and Aristocrat have taken more than $225 million from Washington residents since September 2020, despite lacking the licenses required to offer gambling in the state. Together, the companies allegedly operate 16 casino apps used by more than 150,000 Washingtonians each month.

The lawsuit claims the companies violated both the state Gambling Act and Consumer Protection Act and seeks to shut down the apps while clawing back money lost by players.

Part Of Nationwide Sweep To End Sweepstakes Casinos

Washington’s action is not happening in a vacuum. It mirrors a nationwide enforcement trend in which regulators and lawmakers are increasingly targeting platforms that market themselves as “free-to-play” or sweepstakes-based while functioning like real-money casinos.

These apps typically rely on dual-currency systems, where users buy virtual coins — sometimes labeled as entertainment tokens or promotional currency — that are then wagered on games of chance such as slots, poker, and bingo. States are increasingly arguing that this structure is gambling by another name.

Tennessee lawmakers last week introduced legislation that would ban sweepstakes casinos. Enforcement actions or proposed legislation have emerged in Maine, Florida, Indiana, Utah, Mississippi, Maryland, Virginia, Oklahoma, and Iowa.

New York and California moved to shutter dual-currency, sweepstakes/social casinos last year.

The future of Sweepstakes Casinos remain a heated topic among legislators and regulators.

Allegations of Deceptive and Child-Focused Marketing

The Washington complaint goes further, alleging deceptive practices — including no age verification and marketing tactics that appear designed to appeal to children.

Playtika’s Bingo Blitz, for example, features cartoon characters, colorful animations, and a YouTube channel that resembles children’s programming, the suit claims. State officials say parents have reported kids using their phones to play casino-style apps, sometimes running up hundreds of dollars in charges.

“These companies repeatedly violated Washington law, engaged in deceptive practices, and fleeced Washingtonians out of hundreds of millions of dollars,” Brown said in a statement announcing the lawsuit. “It is especially troubling to see gambling apps targeting children.”

Virtual Currency Still Counts

Washington law prohibits internet gambling without a license, and regulators argue these apps clearly cross that line. In 2018, the Ninth Circuit Court of Appeals ruled that virtual casino currency qualifies as a “thing of value,” a key legal threshold under state gambling statutes.

Both companies were already on notice. Playtika settled a consumer class-action lawsuit in 2020 for $38 million over similar allegations, while Big Fish Games — now owned by Aristocrat — resolved a parallel case. Despite those settlements, the state says the companies continued operating.

Casino Feel, No Cash-Out

The lawsuit also highlights what regulators see as the core problem with sweepstakes casino apps: they replicate the casino experience without offering real withdrawals. Players can win more virtual currency — but the only way to use it is to keep gambling inside the app.

As Playtika itself has marketed, the goal is to deliver “the Las Vegas experience in the palm of your hand.” Washington regulators argue the difference is simple — Vegas pays out. These apps don’t.

Apps Named in the Lawsuit

The complaint names the following apps, among others:

Slotomania, House of Fun, Caesar’s Casino Slots, Vegas Downtown Slots, World Series of Poker, Poker Heat, Monopoly Poker, Governor of Poker 3, Bingo Blitz, Big Fish Casino, Jackpot Magic Slots, Lightning Link Casino, Cashman Casino, Heart of Vegas, Mighty Fu Casino, and NFL Superbowl Slots Casino.

Washington’s move adds more fuel to a fast-building national pushback — and sends another clear signal that states are done letting sweepstakes casinos operate in the gray area.