California wins $3.5M payoff in illegal gambling lawsuit

OAKLAND, Calif. (AP) — A company that made and operated casino-style games used for illegal gambling will pay $3.5 million and permanently stop its California operations under a court settlement announced Thursday. Pong Game Studios Corp. agreed to settle a lawsuit that alleged it provided software to gambling dens that offered slot- and poker-style computer games with cash prizes. The so-called “sweepstakes cafes” claimed to be legal, but they were ruled unlawful by the California Supreme Court in 2015. The settlement bars Pong from making, selling or providing any unlawful gambling device, software or computer system in California.