Share
Matthew Joyce, a North Carolina resident, is suing two sweepstakes platforms and a lending platform in a gambling-related case. He accuses the three companies of fueling and exploiting his gambling addiction.
The multi-count lawsuit targets DBA Modo Casino, DBA McLuck Casino, and Affirm Inc. The Law Office of Reshma Kamath filed the lawsuit in U.S. District Court for the Eastern District of California, Sacramento Division.
Joyce alleges that the platforms caused him severe financial and emotional harm. According to the lawsuit, they also violated the Unruh Civil Rights Act and the California Financing Law. Other claims include fraud, unjust enrichment, breach of contract and negligent misrepresentation.
Addicted gambler says platforms played him, not the games
Joyce suffers from a recognized gambling disorder. He also has anxiety, depression and bipolar disorder. Despite clear signs of his condition, the lawsuit alleges that the sweepstakes platforms failed to implement responsible gambling measures. Instead, they deliberately exploited his vulnerability through actions that encouraged his addiction.
The complaint highlights what Joyce describes as a pattern of manipulation in his wins and losses, based on timing. Larger wins came at the beginning of weekends, when withdrawals were not available.
The lawsuit also notes that withdrawals require two business days to process and that players can cancel pending withdrawals to continue gambling. Joyce claims the platforms relied on this feature, knowing he was likely to cancel his requests and keep playing, effectively limiting his ability to cash out winnings.
The complaint further alleges that the platforms elevated Joyce to the “Black Diamond” tier of their loyalty program, which offered benefits such as bonus credits and personal hosts. He argues this preferential treatment intensified his addiction.
Affirm kept lending despite spiraling debts, lawsuit says
In addition to the sweepstakes platforms, Joyce is suing Affirm Inc., a loan provider. He accuses Affirm of colluding with the casinos by extending him high-interest loans that he used exclusively for gambling.
According to the lawsuit, many loans carried annual percentage rates of 24% to 25%. Despite Joyce’s escalating addiction and mounting debt, Affirm allegedly continued to approve and collect on the loans.
Casinos marketed as fair, but lawsuit says otherwise
Joyce also accuses ARB Gaming LLC (DBA Modo Casino) and B2Services OU (DBA McLuck Social Casino) of operating illegal gambling platforms disguised as sweepstakes. He alleges they engaged in false advertising by marketing their games as fair and transparent and promising prompt withdrawals, while in practice restricting them.
The lawsuit also claims they advertised consumer protections that were never enforced, leaving players with gambling disorders vulnerable. Joyce alleges these practices caused him significant financial losses, including gambling expenditures and loan interest, as well as emotional and psychological harm.
He is seeking damages against ARB Gaming LLC, B2Services OU and Affirm Inc. The lawsuit requests restitution of funds, disgorgement of profits, punitive damages and attorney fees.
Lawsuit adds to rising scrutiny of sweepstakes casinos
The case underscores growing questions about how online sweepstakes casinos are regulated. It is not the first lawsuit of its kind: The Los Angeles city attorney recently sued Stake.us for allegedly operating an illegal online casino under the guise of a sweepstakes platform. That lawsuit marked the first such case filed by a state authority, signaling heightened scrutiny.
Other sweepstakes platforms, including Crown Coins and Thrillzz Casino, also face lawsuits in multiple states. Beyond sweepstakes casinos, the case raises concerns about financial technology companies that finance gambling-related debt without offering consumer protections.
