Television personality Ryan Seacrest is facing legal action for his endorsement of Chumba Casino, an online gambling platform that operates under the so-called sweepstakes model.
The lawsuit, filed on behalf of California resident Aubrey Carillo, alleges that Seacrest promoted illegal gambling through his association with the platform.
Carillo claims to have suffered significant financial losses on Chumba Casino, described in the lawsuit as a “criminal scam.”
The legal complaint, first reported by sports betting lawyer Daniel Wallach, targets both Seacrest and Virtual Gaming Worlds (VGW), the Australian-based owner of Chumba Casino.
Along with Seacrest, slots influencer Brian Christopher was sued for his role promoting VGW’s products.
Ryan Seacrest gambling endorsement allegedly causes harm
The lawsuit asserts that the activities of Seacrest and VGW violate California law prohibiting unlicensed gambling operations. The state of California doesn’t sanction any form of online casino or online sports gambling.
Carillo is seeking to halt Chumba Casino’s operations within California and to prevent Seacrest from profiting from his association with the platform.
The lawsuit accused Seacrest of helping fuel problem gambling in the US.
“Seacrest promotes illegal gambling, and in doing so, contributes to the rise of online gambling addiction among adults and adolescents,” the lawsuit said.
People who gamble online are far more likely to develop problems than people who gamble in person, with as many as 70% of monthly online bettors experiencing harm, a recent Australian study found.
Sweepstakes gambling under pressure
The Ryan Seacrest gambling lawsuit goes to the heart of sweepstakes gambling.
Chumba Casino operates under a sweepstakes model, allowing users to play games using virtual currency that can be purchased with real money and, in some cases, redeemed for cash prizes.
The model functions under legal loopholes and has been scrutinized in several states.
For instance, Louisiana recently passed legislation banning such sweepstakes casinos, and similar measures are being considered in states like Nevada, New York, and Connecticut.
According to Chumba Casino’s website, it has blocked users from Connecticut, Delaware, Michigan, Montana, Nevada, and Washington.
‘Who doesn’t love games?’
Seacrest’s partnership with Chumba Casino began in December 2023, with promotional materials featuring him appearing on the company’s website and social media channels.
In a statement at the time, Seacrest expressed enthusiasm about the collaboration.
“Who doesn’t love games?” he said. “I’m now excited to announce my partnership with Chumba to bring the fun home all year long, making it accessible and easy to all.”
As of writing, Seacrest has not publicly commented on the gambling lawsuit. A source close to the celebrity described the legal action as a “nuisance lawsuit,” TMZ reported.
Image via court documents.
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