Illegal Gambling Class Actions Pile Up Against Firms Offering Online 'Sweepstakes'

Litigation and regulatory attorney Johnny ElHachem was interviewed for a Corporate Counsel article about a swath of lawsuits accusing companies of violating Utah's anti-gambling laws and what the cases mean for enforcement in other states. Utah maintains a strict ban on online gambling, and the plaintiffs argue businesses that allow customers to spend money to acquire in-game coins for use in casino-style games or monetary redemption run afoul of the prohibition. The article explains online gaming companies sometimes try to bypass state gaming laws by presenting their practices as "sweepstakes" that give players a free way to enter, but authorities and private actors have taken notice and are responding with litigation, especially in Utah. Mr. ElHachem, who co-leads the firm's Gaming Practice, commented that state regulations run the gamut between legality and prohibition and companies can reasonably decide to risk operating in some states while treating others as "radioactive" and preventing consumers in those places from accessing products.

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