Lawsuit Alleges Ryan Seacrest's Endorsement of Chumba Casino was Misleading
Celebrity TV Host Ryan Seacrest Faces Legal Challenge Over Chumba Casino Endorsement
In a twist of events, TV personality Ryan Seacrest finds himself in hot water due to his affiliation with Chumba Casino, a sweepstakes-style online gaming platform. A new lawsuit, filed by Aubrey Carillo of California, alleges Seacrest is promoting an illegal gambling operation. The lawsuit targets both Seacrest and the Australian company behind Chumba Casino, VGW Holdings.
Carillo accuses Seacrest of pushing an illicit gambling operation through his promotion of Chumba Casino on social media and the site itself. The legal action seeks to ban the site from operating in California and to put an end to Seacrest's financial gains through the partnership.
The lawsuit contends that "Seacrest, boasting a fortune of $450M residing in Beverly Hills, Napa Valley, Bel-Air, and Manhattan, has no need to jeopardize others for financial gain. However,Seacrest ignorantly aids in this illegal practice by serving as the celebrity endorser" [1].
Chumba Casino operates under a sweepstakes model that utilizes virtual currency. Users can purchase extra coins with real money or crypto, which can be converted into cash prizes. Critics argue this setup resembles traditional online gambling and circumvents regulation [2].
A similar lawsuit, aimed at Stake, another sweeps-based gambling operator, surfaced in California in March [3]. Other states, including Louisiana, Nevada, New York, and Connecticut, are pondering legislation to counter these casinos [3].
As pressure mounts against unauthorized gambling, lawmakers are zeroing in on celebrity endorsements such as Seacrest's. The outcome depends upon whether the court perceives Chumba's sweepstakes model as distinct from gambling under California law [2][4]. No trial date or settlement details have been announced [2][4].
Thus far, Seacrest remains mum about the lawsuit. In announcing the partnership, Seacrest expressed enthusiasm for bringing fun and games to people, stating, "Who doesn't love games? 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" [1].
References:
- Wall Street Journal
- Variety
- Casino.org
- Bloomberg Law
- Ryan Seacrest, the celebrity TV host, is facing a legal challenge over his endorsement of Chumba Casino, a casino-and-gambling platform that operates as a sweepstakes-style online gaming platform.
- Seacrest's alleged involvement in promoting an illicit gambling operation, as claimed by Aubrey Carillo from California, has led to a lawsuit targeting both Seacrest and the Australian company behind Chumba Casino, VGW Holdings.
- As a high-profile endorser, Seacrest receives financial gains through his association with Chumba Casino, and the lawsuit seeks to ban the site from operating in California and put an end to these earnings.
- The entertainment industry and its personalities like Seacrest are under increasing scrutiny as lawmakers explore legislation against unauthorized gambling operations, including Chumba Casino's casino-games.
- The outcome of the lawsuit against Seacrest remains uncertain, with the court's decision likely to hinge upon whether Chumba's sweepstakes model is considered distinct from gambling under California law.
