Chapel Hill, North Carolina resident Matthew Joyce has sued ARB Gaming LLC, B2Services OU, and Affirm, Inc. in the U.S. District Court for the Eastern District of California.
According to the complaint, the defendants ran online gaming platforms and sweepstakes in a manner that allegedly took advantage of Joyce’s gambling disorder, which is a disability recognised by the Americans with Disabilities Act and California law.
The complaint alleges that to maximise Joyce’s financial losses, the defendants employed strategies such as ‘VIP’ programmes, inducements and special financing options.
ARB Gaming (doing business as “MODO”) and B2Services OU (doing business as “MCLUCK”) allegedly designed its platforms to resemble casino operations rather than genuine sweepstakes, while Affirm offered loans with annual percentage rates of up to 25% for purchases related to gambling.
Allegations of Targeted Exploitation
Joyce was allegedly given preferential treatment and a personal host after being promoted to “Black Diamond” status following significant financial losses.
In one email cited in the filing, a MODO representative wrote: “As your host, I am the only one able to send you free SC gifts…”, indicating that Joyce received special benefits unavailable to other players.
Joyce says he lost over $1m (£740,000) over ten years and over $200,000 (£148,000) in a single year.
Joyce allegedly played between 18.5 and 21 hours a day during specific periods, with platform payout percentages allegedly falling below industry standard ranges of 90–98%.
Joyce’s gambling behavior and losses deteriorated as a result of these payout changes, which also happened to coincide with significant financial events.
A breach of contract, negligent misrepresentation, fraud, unfair business practices, unjust enrichment, and a violation of the California Financial Lenders Law are among the causes of action asserted in the lawsuit.
Joyce is requesting more than $10m (£7.4m) in damages, which include statutory penalties, restitution, and compensation for emotional distress.
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