The cafes claim to avoid laws against illegal gambling by supposedly selling a product, such as prepaid telephone cards, that include sweepstake entries permitting customers to play the games. The lawsuit said the company provided software to so-called “sweepstakes cafes” that offer Internet-based slot- and poker-style computer games with the possibility of getting cash prizes. But in the settlement, the company acknowledged that some of its operations were “unlawful, unfair or fraudulent” as alleged in the complaint, according to the indictment.īased in Ontario, Canada, Pong Game Studios makes video lottery and other game terminals along with casino-style games for mobile phones. An email to the company seeking comment wasn’t immediately returned.
