Washington State Attorney General Nick Brown has filed a lawsuit against unlicensed casino-style gambling app operators, accusing them of violating Washington’s Gambling Act and the Consumer Protection Act. The lawsuit alleges that the apps, which have been offering online gambling services to Washington residents without proper licensing, have taken more than $225 million from users since September 2020.
The lawsuit targets illegal operators who have exploited gaps in the state’s regulatory framework to provide online gambling services that are outside the control of Washington’s gaming regulators. The apps in question offer a variety of casino-style games but are not licensed by the Washington State Gambling Commission (WSGC), making their operations illegal.
Attorney General Nick Brown has stated that the lawsuit is necessary to protect consumers and ensure that gambling in Washington occurs only through legal and regulated avenues. He emphasised that the action aims to hold unlicensed operators accountable for exploiting Washingtonians through unregulated gambling apps that prey on unsuspecting consumers. In his statement, Brown said:
These illegal gambling apps are violating state laws and putting the interests of consumers at risk. This lawsuit is about enforcing Washington’s laws and ensuring that consumers are protected from harmful, illegal gambling practices.
Legal Action Against Unlicensed Operators
The lawsuit targets operators who are violating the Gambling Act, which mandates that all gambling operators within Washington must obtain a licence from the state. Washington’s Gambling Act is designed to ensure that gambling is carried out in a manner that protects consumers, prevents fraud, and generates revenue for the state’s economy.
The Consumer Protection Act is another key aspect of the lawsuit, aiming to prevent businesses from engaging in unfair or deceptive practices that harm consumers. The lawsuit seeks restitution for affected individuals and injunctive relief to prevent the operators from continuing to offer their services in Washington.
Consumer Protection and Impact on Washington Residents
The unlicensed apps have reportedly been taking advantage of loopholes in state regulation to operate outside the jurisdiction of the Washington State Gambling Commission (WSGC), which regulates all legal gambling activities within the state. With no regulatory oversight, users have been exposed to potential risks, including fraud, data breaches, and gambling addiction.
The lawsuit is part of an ongoing effort to protect consumers from illegal gambling practices and ensure that all gambling activity in Washington is fair and regulated. AG Nick Brown has expressed concern over the negative social impacts of illegal gambling, including financial losses and the potential for problem gambling.
A Global Push to Combat Illegal Gambling
Washington’s lawsuit comes amid increased global and regional efforts to curb illegal gambling activities. For example, in Greece, a recent crackdown on illegal gambling has seen new laws implemented to shut down unlicensed operators and increase penalties for violations.
Similarly, in the Netherlands, the Dutch Gambling Authority (KSA) has announced a comprehensive player protection agenda for 2026 as part of its ongoing fight against illegal gambling and to ensure that operators comply with local regulations.
These efforts underscore the global trend of increasing regulatory scrutiny aimed at illegal gambling operators and a stronger push to protect consumers from the harmful effects of unregulated gambling.
The lawsuit is part of an ongoing legal battle in the U.S. to regulate the online gambling space, particularly illegal operators that circumvent state laws. As Washington State continues to clamp down on unlicensed apps, other states may follow suit in pursuing similar actions to protect consumers and ensure that gambling is conducted within a safe, regulated framework.
This lawsuit also highlights the increasing importance of robust regulatory frameworks and enforcement mechanisms in the online gambling industry, as illegal operators continue to exploit gaps in regulation.