A Funzpoints Kentucky settlement means players on the social casino site may be eligible for part of an $835,000 fund established to settle claims, provided they file before Jan. 29, 2024. Woopla, Funzpoints’ parent company, agreed to the settlement but has denied that it violated “any law.”
Social games aren’t regulated real-money gambling sites. However, some, like Funzpoints, offer opportunities to win cash prizes using a sweepstakes model. On Funzpoints Casino, players use virtual coins to play slots and Keno.
Social casinos say they don’t fit the legal definition of gambling because their chips have no cash value. However, various lawsuits have challenged that logic, arguing that the chips still count as a “thing of value” if they’re needed to play the game. Such suits have tended to end in settlement, so US courts haven’t yet made a final ruling on the issue.
In Kentucky, that happened in December when Virtual Gaming Worlds (VGW) agreed to pay $11.75 million to Kentuckians who used Chumba Casino and Luckyland Slots.
That also appears to be the situation for this Funzpoints Kentucky settlement and another similar one by Yellow Social Interactive (YSI), which owns Pulsz and Pulsz Bingo. The latter has agreed to pay $1.32 million to Kentuckians on the same timeline set out for Woopla.
Aside from the monetary settlements, both companies agreed to make changes to their games. These include responsible gaming controls, a self-exclusion option, and the ability to keep playing even after running out of play money chips.
Funzpoints Kentucky Settlement Details
So Kentuckians who believe they’re entitled to compensation for playing on Funzpoints.com can visit WooplaPlatformSettlement.com. There, they will find a green “Submit a Claim” button and instructions to follow.
The site also provides information about who may be eligible for part of the $835,000 Funzpoints settlement:
You are a Settlement Class Member if you spent $5.00 or more within a 24-hour period on www.funzpoints.com from June 27, 2018 to October 29, 2022 (the “Platform”), while located in the Commonwealth of Kentucky.
The settlement fund will be split between claimants based on how much they spent on Funzpoints during the period covered by the lawsuit. WooplaPlatformSettlement.com provides a “Payout Estimate Calculator” that Kentucky Funzpoints players can use to determine how much money they may receive if they file a claim.
The exact payout amount will depend on how many Kentucky residents opt in. However, the settlement site estimates that payouts will be in the following range:
- 10% of the first $1,000 spent by a player.
- 17.5% of additional spending up to $10,000.
- 30% of further spending up to $100,000.
- 60% of any spending beyond $100,000.
For instance, a player who spent $2,000 might be eligible for a $275 payout: $100 (10%) for their first $1,000 and $175 (17.5%) for the next $1,000.
Possible members of the class action settlement can also opt out or object by Nov. 17 if they want to reserve the right to pursue individual litigation or arbitration. Those who do nothing will not receive a settlement payment but also become ineligible to seek compensation individually.
On Dec. 11, the court will hold a hearing on Wyland vs. Woopla Inc. in the Kentucky Circuit Court for Henderson County. That’s the “final approval hearing for the settlement,” according to Top Class Actions.
Whiting vs. Yellow Social Interactive Ltd. is in the same court and has the same settlement timeline, Top Class Actions noted.
Funzpoints Kentucky Settlement Not First One
Kentucky is known for pursuing what it considers illegal gambling sites and getting settlements out of court. Perhaps its most notable one was PokerStars.
In 2010, Kentucky sued the online poker site. In 2021, the site’s new owner — Flutter Entertainment — settled the case for $300 million.
In 2022, then-state Rep. Adam Koenig proposed a problem gambling fund that would have used the $225 million from that settlement that was in the general fund. That bill failed.
Meanwhile, the state known for its legal horse racing betting finally added legal esports and sports betting in September 2023.
However, online casinos and poker sites are still illegal in Kentucky. So, social casinos may continue to serve the Bluegrass State in the absence of a real money option, unless there is a move to regulate them or a court issues a final ruling on their legality.