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Alabama residents are stepping up legal pressure against online sweepstakes operators, claiming these sites run illegal casinos right in people’s homes.
Good to know
- Alabama strictly bans commercial gambling, including online casinos and sports betting.
- Operators like Blazesoft, High 5 Games, ARB Interactive, and Stake.us are facing lawsuits.
- Players purchase virtual currencies on these sweepstakes sites that they can later cash out.
Tamara Hester recently sued Blazesoft Limited and A1 Development in Franklin County court. Blazesoft operates websites such as Sportzino, Zula, and Fortune Coins, while A1 owns Funrize Casino and NoLimiteCoins. Hester says these operators turn phones and computers into nonstop gambling devices.
Laura Hall filed another lawsuit earlier in May against Stake.us, alleging their sweepstakes gambling cost her financially and hurt her family. Her complaint also compares sweepstakes gaming to previously banned internet cafes.
Sweeping Money from Alabama
Michael Sumerel’s case against High 5 Games claims these sweepstakes sites drain Alabama’s economy. His lawsuit states:
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“Even if Alabama consumers represent but a small percentage of [High 5’s $15 million annual revenue], the reality is that a great deal of money is being removed from the state’s economy each year.”
The lawsuit notes these operators contribute no local jobs or state tax revenue. High 5 Games this year was already forced to withdraw in over a handful of states.
Another recent class-action suit from Hunter Black Jackson targets ARB Interactive, operator of Modo Casino. Plaintiffs argue that these sweepstakes operators exploit smartphones and computers to illegally deliver gambling games straight into homes.
Alabama is among a few states with no legal commercial gambling options, making it particularly tough for sweepstakes companies to claim legitimacy. Similar lawsuits have appeared recently in states like California, Illinois, and New York. Additionally, New York, Nevada, Montana, and Connecticut have passed laws restricting sweepstakes gaming, and California just proposed similar measures.
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