LA authorities claim company was offering casino games as legal sweepstakes.
Internet gambling in the US state of Los Angeles isn’t legal yet, but software developer Figure 8 Technologies has found a way around it. At least that’s what LA city attorney Mike Feuer believes. He recently filed a suit against the company, claiming they were selling casino-style games to local cyber cafes.
The games spun reels and players were dealt virtual cards – just like in casino games – after buying and wagering points which they later redeemed for money, so attorneys figured these games are nothing more than masked illegal gambling.
If the court decides against Figure 8 Technologies, the offense is punishable under American gambling laws.
Gambling masked as legal sweepstakes
Figure 8 is one of the biggest developers working with Internet “sweepstakes” cafes in America. The North Carolina-based company was sued for unfair competition and false advertising, with LA prosecutors claiming it sold illegal games as legal sweepstakes.
Owners of the five cyber cafes offering casino-style games are also mentioned in the lawsuit. The venues are currently out of business. These types of businesses have become very popular across Los Angeles and local authorities are closely monitoring them.
Last year, nine cafes were raided by the LA County Sheriff’s Department, as officials were suspecting that computers are acting as slot machines.