Internet Companies Slapped With Suit Over Gambling Ads

SAN FRANCISCO — Sex.com is among a list of Internet firms named in a class-action suit filed Tuesday that claims the companies sell rights to web advertisements that are illegal in California.

The suit demands that the companies stop accepting the advertisements based on searches for terms such as "illegal gambling," "Internet gambling" and "California gambling." It also asks for the companies to give consumers in California "millions of dollars in ill-gotten gains," according to attorney Ira Rothken, who is representing plaintiffs Mario Cisneros and Michael Voight.

The 60-page suit, filed in San Francisco Superior Court, also claims the Internet companies use geotracking software to target certain regions or illegal gambling ads.

More than a dozen high-profile online companies are named as defendants, including Google, Alta Vista and Overture. The suit also names 100 John Doe defendants, which could include other online adult companies.

“Defendants obtain revenue from these websites when they convince users to ‘click-through’ to the advertisers’ websites,” the suit says. “In the case of illegal gambling, this ‘click-through’ directs California users to Internet gambling websites where persons in California are enticed to gamble away their hard-earned savings using their home and work computers.”

The plaintiffs of the suit, acting for all Californians, say the companies raked in a majority of the millions of dollars gambling firms spent on advertising, despite the fact that it is illegal in the state.

Sex.com, the suit says, uses paid advertisement listings for Casino Tropez, Showdown online casino and Lucky Nugget Casino.

Sex.com also operates a directory service with special websites for casinos called Casino.sex.com, the suit says. That site provides paid advertising content for numerous Internet gambling sites. Results from Sex.com note that the search is being conducted in the United States by using the notation “(US)” with its search results.

Calls to Gary Kremen, owner of Sex.com, were not returned to XBiz at posting time.

Voight of Scotts Valley, Calif., one of the lead plaintiffs in the case, said he used search engines in the state to find Internet gambling websites, and as a result lost over $100,000 in Internet bets.

The plaintiffs, led by the class-action specialist William Lerach of San Diego, seek restitution, forfeiture and disgorgement of illegal gambling proceeds.

The suit asks that proceeds be distributed to spouses of gamblers who have had community property taken from them as a result of the gambling, as well as to California Indian Tribes, other licensed gambling businesses and to the state treasury.

In its complaint for violations of California’s Business and Professions Code Sections 17200, the plaintiffs also seek to enjoin the online firms from participating in, and continuing to market, sell, and display advertising for Internet gambling in California.

Tuesday’s lawsuit is the latest to involve online gambling, which has become a multibillion-dollar-a-year industry and is usually focused on online poker or blackjack.

Wireless interests, including some Western European cell phone service providers, also offer gambling opportunities to their subscribers.

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

NYC Adult Businesses Seek SCOTUS Appeal in Zoning Case

Attorneys representing a group of New York City adult businesses are asking the U.S. Supreme Court to hear an appeal of a lower court’s decision allowing enforcement of a 2001 zoning law aimed at forcing adult retail stores out of most parts of New York City.

Teasy Agency Launches Marketing Firm

Teasy Agency has officially launched Teasy Marketing firm.

Ofcom Investigates More Sites in Wake of AV Traffic Shifts

U.K. media regulator Ofcom has launched investigations into 20 more adult sites as part of its age assurance enforcement program under the Online Safety Act.

MintStars Launches Debit Card for Creators

MintStars has launched its MintStars Creator Card, powered by Payy.

xHamster Settles Texas AV Lawsuit, Pays $120,000

Hammy Media, parent company of xHamster, has settled a lawsuit brought by the state of Texas over alleged noncompliance with the state’s age verification law, agreeing to pay a $120,000 penalty.

RevealMe Joins Pineapple Support as Partner-Level Sponsor

RevealMe has joined the ranks of over 70 adult businesses and organizations committing funds and resources to Pineapple Support.

OnlyFans Institutes Criminal Background Checks for US Creators

OnlyFans will screen creators in the United States for criminal convictions, CEO Keily Blair has announced in a post on LinkedIn.

Pineapple Support to Host 'Healthier Relationships' Support Group

Pineapple Support is hosting a free online support group on enhancing connection and personal growth.

Strike 3 Rejects Meta 'Personal Use' Defense in AI Suit

Vixen Media Group owner Strike 3 Holdings this week responded to Facebook parent company Meta’s motion to dismiss Strike 3’s suit accusing Meta of pirating VMG content to train its artificial intelligence models.

Pornhub, Stripchat: VLOP Designation Based on Flawed Data

In separate cases, attorneys for Pornhub and Stripchat this week told the EU’s General Court that the European Commission relied on unreliable data when it classified the sites as “very large online platforms” (VLOPs) under the EU’s Digital Services Act, news organization MLex reports.

Show More