Class Action Lawsuit Claims SpinBlitz Operates Online Gambling Games Illegally in Illinois

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A proposed class action lawsuit claims that SpinBlitz’s operation of its online casino business in Illinois is illegal, given that gambling games in the state may only be offered by licensed operators at approved physical locations.

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According to the 30-page lawsuit, SpinBlitz advertises itself as a social casino that offers users thousands of online, casino-style games purely for fun and without the risk of losing any real money or similarly valuable items. However, the suit alleges that SpinBlitz, contrary to its representations, facilitates real-money games of chance through its Sweepstakes Coins system, which allows players to wager items of tangible value in exchange for real-world prizes.

The case states that gambling is strictly regulated in Illinois, with the state’s laws mandating that gambling games can be offered only by licensed operators at certain physical locations.

“SpinBlitz’s operations flout these legal requirements by providing unlicensed gambling services to Illinois residents via the internet,” the class action lawsuit summarizes.

The complaint explains that in order to play the casino games offered by SpinBlitz, a player must wager one of two types of in-game coins: Gold Coins or Sweepstakes Coins. While Gold Coins can be obtained for free and cannot be exchanged for any items of real monetary value, the filing says that Sweepstakes Coins can be redeemed for cash prizes and gift cards, making them a proxy for real money with a value of one U.S. dollar per coin, the lawsuit says.

The complaint contends that Sweepstakes Coins effectively represent and can be exchanged for real money or items of real monetary value, and that SpinBlitz thus allows, enables and encourages players to engage in real-money gambling.

Additionally, while Sweeptakes Coins can be obtained through promotional giveaways and participation in various SpinBlitz events, the lawsuit contends that the most common way players acquire Sweepstakes Coins is when they are bundled as a “free” bonus with purchases of Gold Coins. The complaint also claims that players repeatedly make these purchases even when they have large amounts of Gold Coins, meaning that the transactions are primarily made for the purpose of acquiring more Sweepstakes Coins.

In light of this, the filing argues that the sale of Gold Coins is simply a mechanism to disguise the sale of Sweepstakes Coins and obscure the real-money nature of the Sweepstakes Coins and any purchases thereof.

Further, SpinBlitz also makes it difficult for players to redeem their Sweepstakes Coins for any of the promised prizes by enforcing a “1x playthrough” rule, the lawsuit says. The “1x playthrough” rule means that players must wager the amount of Sweepstakes Coins they wish to redeem before the redemption can occur, making it more difficult for players to redeem the coins through the randomized potential to lose them in one of SpinBlitz’s casino games. Per the suit, this serves to compel players to continue to gamble and risk further losses under the guise of redeeming rewards they earned previously.

The SpinBlitz class action lawsuit seeks to represent all Illinois residents who lost money wagering on SpinBlitz’s online casino games during 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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