Ryan Seacrest, the renowned host of American Idol and Wheel of Fortune, is being sued over his involvement in promoting Chumba Casino, an online social slot game app, which is accused of operating illegally in California. The lawsuit, filed by Aubrey Carillo, claims that Seacrest’s endorsement of Chumba Casino led to financial losses and contributed to the rise of gambling addiction.

Allegations of illegal gambling and unregulated operations:

The legal action was prompted by Chumba Casino’s operations, which Carillo contends violate California’s Penal Code 322. This law prohibits individuals from assisting in the operation of a lottery or gambling system without proper authorization. The lawsuit claims that, by promoting Chumba Casino, Seacrest is aiding an illegal gambling operation in the state.

Chumba Casino, which boasts over one million daily players, offers a social casino experience that allows users to purchase virtual coins and play slot-style games. While these games do not technically involve real money bets, they offer players the chance to exchange coins for cash or prizes, blurring the line between legal sweepstakes and illegal gambling.

The lawsuit further accuses Seacrest of profiting from an operation that promotes gambling addiction, particularly among vulnerable individuals. Carillo argues that the advent of online gambling platforms has exacerbated gambling problems across the United States, citing a 45% increase in calls to the National Problem Gambling Helpline from 2021 to 2022. The complaint suggests that online casinos like ChumbaCasino.com could contribute to a “gambling addiction crisis” similar to the opioid epidemic.

Seacrest has been actively promoting Chumba Casino through his social media channels and appeared in several advertisements for the company. The lawsuit criticizes him for leveraging his celebrity status to endorse what it calls an unregulated, harmful gambling platform. It also claims that one of Carillo’s children accessed ChumbaCasino.com, heightening concerns about underage access to online gambling.

The legal complaint argues that Chumba Casino’s operations mirror the illegal internet cafes that were prevalent in the 2000s, where patrons could purchase phone cards or computer time and, in turn, receive credits for gambling. These types of operations were ruled illegal in California due to the “consideration” involved—essentially, players were paying to participate in gambling-like activities. Carillo asserts that the same logic should apply to Chumba and other similar sweepstakes websites.

Legal and financial implications for Seacrest and Chumba Casino:

The plaintiff is seeking an injunction to stop Chumba Casino from operating in California and to prevent Seacrest from profiting off the platform. While Chumba Casino has stated that it operates within the bounds of the law, with a spokesperson claiming the lawsuit has “no merit,” the legal challenges surrounding online gambling in the U.S. are becoming increasingly significant. The company insists that it follows all applicable laws and that Seacrest’s role is purely as a brand ambassador, not involved in the daily operations of the casino.

The lawsuit is part of a growing wave of legal scrutiny over unlicensed gambling operations, especially those utilizing sweepstakes as a workaround for gambling laws. Several U.S. states, including Louisiana, Nevada, and New York, have introduced or are considering bills to regulate or ban sweepstakes-style gambling, which has been widely criticized for its potential to facilitate illegal activities and encourage gambling addiction.

As the lawsuit progresses, public sentiment is divided. Some view the legal action as a necessary step to curb the unregulated spread of online gambling, while others see it as an overreach that could stifle the industry. Ryan Seacrest, however, has not publicly commented on the lawsuit, and it remains unclear how the case will impact his endorsement deals and future partnerships.

As The U.S. Sun reports, Chumba Casino’s parent company, Virtual Gaming Worlds (VGW), is also under scrutiny. The company operates several online gaming sites, including Global Poker and Luckyland Slots. VGW has been the subject of several lawsuits, which claim that its platforms, while marketed as sweepstakes, function as unlicensed casinos, violating state laws and exposing consumers to financial risk.