Class Action Lawsuit Claims MyPrize.us Online Casino Operates Illegally in California

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A proposed class action lawsuit claims that MyPrize.us illegally operates online casino games in California, a state with a longstanding policy against gambling.

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The 26-page lawsuit says that MyPrize.us offers gambling and casino games on its online platform under the guise of being a free-to-play social casino, where casino games are played purely for enjoyment, with no monetary risk. However, the suit claims that MyPrize.us users can and do wager, win and lose real money and other items of real monetary value during these games, in violation of California law.

“By law, these games can only be offered by licensed operators in licensed, physical locations,” the complaint states, accusing MyPrize.us of flouting state law by offering unlicensed gambling services to California residents.

MyPrize.us, the complaint says, allows users to wager with either of its proprietary digital currencies, Gold Coins or Sweeps Cash. While Gold Coins do not bear any real monetary value, Sweeps Cash can be redeemed for gift cards and cash prizes, with one Sweeps Cash equivalent to one U.S. dollar, the filing says.

Although users can acquire Sweeps Cash through promotions and participation in daily events, they acquire the majority of their Sweeps Cash when it is bundled in a purchase of Gold Coins from the MyPrize.us online store, the complaint relays. The listings on the store are designed such that Sweeps Cash is framed as a free add-on with the purchase of a certain number of Gold Coins, the suit says.

However, the lawsuit claims that most MyPrize.us users buy additional Gold Coins bundles when they have run out of Sweeps Cash, even if they haven’t run out of Gold Coins, indicating that the majority of these transactions are made with the intention of acquiring Sweeps Cash for continued real-money gambling.

Additionally, the lawsuit says that MyPrize.us structures its Sweeps Cash redemptions and withdrawals to coerce users into further real-money gambling, and to make it difficult for them to actually claim their supposed winnings. It does this, the complaint alleges, by forcing players to wager their intended Sweeps Cash withdrawals on a game of chance before being allowed to redeem them.

The lawsuit claims that MyPrize.us’ operation of such games of chance with real-money stakes is illegal in California, and that it is not a purely social casino as it represents.

The MyPrize.us class action lawsuit seeks to represent all California residents who played and lost money wagering on any MyPrize.us online casino games within the applicable statute of limitations period.

If you or someone you know has a gambling problem, please call the National Problem Gambling Helpline at 1-800-GAMBLER for support, information and referrals to local services that can help.

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