Alabama citizen sues High 5 Entertainment over sweepstakes casinos

An Alabama citizen is the latest to put the boot to sweepstakes casinos, as they are now suing High 5 Entertainment. The operator is being accused of running an illegal sweepstakes casino in the state under a statewide class action complaint.

Filed by Michael Sumerel, it aims to recoup the losses from the pseudo gambling platform for Alabama residents. Alabama is one of the states in the US that has pretty much outlawed gambling.

By legal definition, gambling devices are banned, which prohibits any casinos from getting a foothold. This could change soon, as the Poarch Band of Creek Indians is making moves to bring both sportsbooks and table games to the state.

While Sumerel’s case is just getting started, a similar suit is happening in California. A judge moved the case to arbitration, who will decide whether the cash settlement will be awarded.

Sweepstakes casinos have managed to get around gambling restrictions by presenting themselves through a technicality. Companies operating these platforms claim it isn’t gambling due to a “Prize-Chance-Consideration” method, which relies on the virtual currency that players buy.

As there’s no direct cash being exchanged, but “Gold” and “Sweep” coins, with these sweep coins used for monetary gain, these sites have managed to stay live in states where gambling isn’t legal. New York has recently cast out the style of casinos, with its goal to eliminate any potential for illegal, unregulated gambling and to avoid minors getting involved. While other states are in the midst of banning it, sweepstakes casinos still seem to thrive elsewhere in the US.

Meanwhile, High 5 Entertainment has gone through it in the last few months, as US states begin to collectively come down hard on sweepstakes casinos. At the top of June, it had to pay $1.5 million to Connecticut, and Maryland issued a cease-and-desist order as it tackles the sweepstakes problem.

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