A California-based sweepstakes casino faces a proposed class-action lawsuit, marking the third active legal challenge against similar gaming platforms.

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

The lawsuit alleges that Pulsz.com misleads users by offering minimal free "Sweepstakes Coins" that are quickly depleted, encouraging players to purchase "Gold Coins" to continue playing. When users buy Gold Coins, they receive additional Sweepstakes Coins, which can be redeemed for real money.

This case follows similar legal actions against VGW Holdings in Connecticut and Georgia. VGW operates several sweepstakes platforms, including Chumba Casino, Global Poker, and LuckyLand Slots.

Unlike the Georgia and Connecticut cases seeking financial damages, the California lawsuit only pursues public injunctive relief under the state's Unfair Competition Law. This means while the platform could be shut down if the lawsuit succeeds, plaintiffs won't receive monetary compensation.

The American Gaming Association (AGA) has urged Congress and state lawmakers to ban such gaming websites, with several state gaming regulators issuing cease-and-desist letters to suspected unlicensed iGaming operators.

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