A California-based sweepstakes casino faces a proposed class-action lawsuit, adding to growing legal challenges against online social gaming platforms.

Dennis Boyle filed the lawsuit in Orange County Superior Court against Yellow Social Interactive, which operates Pulsz.com. The Gibraltar-based gaming company markets itself as a free-to-play social casino, but attorneys argue it's actually running an illegal gambling operation.

The lawsuit seeks to shut down Pulsz.com's operations in California under the state's Business & Professions Code. Unlike similar cases in other states, this lawsuit doesn't seek financial damages due to California's Unfair Competition Law.

The legal complaint argues that while Pulsz.com offers free initial tokens, users are encouraged to purchase "Gold Coins" which come with "Sweepstakes Coins" that can be redeemed for real money. Attorneys claim this structure effectively creates an illegal gambling operation.

This case joins two other active sweepstakes lawsuits:

• A Connecticut case against VGW Holdings (operating Chumba Casino, Global Poker, and LuckyLand Slots)
• A federal class-action lawsuit against VGW in Georgia

The sweepstakes casino industry faces increasing scrutiny from multiple directions:

• The American Gaming Association calls for congressional action to ban such websites
• State gaming regulators are issuing cease-and-desist letters
• Legal gaming operators oppose their operations
• Multiple class-action lawsuits challenge their legitimacy

Gaming attorney Daniel Wallach explains that while the California lawsuit can't seek monetary damages, it aims to benefit the public by eliminating potentially deceptive practices through injunctive relief.

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