North Carolina resident Matthew Joyce has filed a federal lawsuit accusing ARB Gaming LLC (doing business as Modo.us or Modo Casino) of predatory and exploitative practices that allegedly took advantage of his known disabilities, including a gambling disorder and bipolar disorder with psychotic features.
Joyce, represented initially by the Law Office of Reshma Kamath and later in amendments by the Mack Law Firm, filed the original complaint in June 2025 in the U.S. District Court for the Eastern District of California (Sacramento Division). A Corrected Amended Complaint was filed around April 14, 2026, expanding the defendants to include not only ARB Gaming but also Affirm, Inc. (a buy-now-pay-later lender), Goldman Sachs Bank USA, Apple Inc., Amazon.com, Inc., and unnamed parties.
According to the complaint, Joyce gambled extensively on the Modo platform from approximately September 2024 through April 2025. During this period, he claims he suffered nine months of documented psychosis tied to his bipolar disorder with psychotic features. This included delusional beliefs that he was “meant to absorb the platform’s losses so other players could win,” as well as ideas involving time travel and the ability to defeat the site’s random number generator (RNG).
Joyce has also been diagnosed with attention deficit hyperactivity disorder (ADHD), anxiety, dissociation, and a gambling disorder—the latter recognized as a disability under both California law and the Americans with Disabilities Act (ADA). He alleges that he directly communicated his delusions to ARB staff, including a request that they “crown” him, which representatives allegedly dismissed as a joke.
The lawsuit claims Modo Casino knowingly targeted Joyce during his vulnerable psychotic episodes by elevating him to the highest “Black Diamond” VIP tier. This status came with personalized perks, gifts, incentives, promotions, and a dedicated VIP host named Timothy Cramblin. According to the complaint, the host reinforced Joyce’s delusions by adopting his self-proclaimed title “Modo’s Martyr” (abbreviated as “MM”) in communications, which allegedly encouraged further compulsive play rather than intervening.
Joyce reportedly spent 5,631 hours on the platform—averaging nearly 14 hours per day. In an attempt to curb his activity, he asked his VIP host to revoke his Black Diamond status and reduce perks, but the requests were allegedly denied repeatedly. His total losses reached approximately $240,000 on Modo alone. The platform later issued him a 1099 tax form reporting about $61,000 in winnings, which was submitted to the IRS.
The complaint further disputes Modo’s payout practices, alleging Joyce’s personal return-to-player (RTP) rate was only around 47%—significantly below the 84–95% range the casino has advertised or that is typical for many slots in the industry. Broader player complaints about Modo have included accusations of inconsistent RTP, delayed redemptions, and games that feel “rigged” after wins, though independent audits are not publicly detailed in the same way as regulated casinos.
Joyce’s attorneys are seeking more than $1.6 million in compensatory and statutory damages in the amended filing focused on Modo (with much higher overall demands across defendants in earlier versions, including up to $10.5 million from ARB Gaming in the initial complaint). The claims include violations of the ADA, California’s Unruh Civil Rights Act (disability discrimination), unfair business practices under Business & Professions Code § 17200, fraud, negligent misrepresentation, breach of contract, unjust enrichment, and related financial lending violations tied to Affirm financing.
The suit portrays Modo as operating an illegal lottery disguised as a lawful sweepstakes model (using dual-currency Gold Coins and Sweepstakes Coins), accessible nationwide except in certain prohibited states. Critics of the sweepstakes casino model argue it exploits regulatory loopholes while functioning like real-money gambling.
Broader Context and Industry Scrutiny
This case is part of growing legal and regulatory pressure on sweepstakes casinos. Joyce’s earlier complaint also targeted B2Services OU (dba McLuck Social Casino) and Affirm for similar alleged exploitation, including high-interest loans used to fund gambling (e.g., dozens of Affirm loans in January 2025 alone for Gold Coin packages ranging from $299.99 to $499.99). He claimed total losses across platforms exceeded $1 million and gambling time surpassed 5,300 hours.
Sweepstakes platforms like Modo have faced bans or restrictions in multiple states, including California (where AB 831 effectively prohibited them starting January 1, 2026), Washington, and others. In Washington, D.C., a bill introduced in 2026 (Council Bill 260656, the Internet Gaming and Consumer Protection Act) seeks to legalize regulated iGaming while heavily limiting or banning dual-currency sweepstakes operations by expanding authority of the Office of Lottery and Gaming. Similar proposals have emerged in states like Maryland and Indiana.
Modo.us, operated from Scottsdale, Arizona, by ARB Gaming LLC, markets itself as a social/sweepstakes casino with games like slots and live dealer options. It has introduced programs like Modo Stars Rewards amid shifting regulations. However, player reviews and complaints have mixed: some praise wins and usability, while others report rapid losses, redemption issues, and perceptions of manipulated RTP.
The lawsuit remains ongoing as of April 2026. It highlights tensions around responsible gaming in unregulated or lightly regulated online platforms, especially when operators have access to player data showing extreme play patterns and known mental health vulnerabilities. ARB Gaming has not publicly commented in detail on the specific allegations in available reports.
This case underscores ongoing debates about whether sweepstakes casinos provide harmless entertainment or enable addiction through aggressive VIP tactics and financing partnerships. Joyce’s attorneys argue the defendants not only failed to implement responsible gaming tools but actively profited from his disabilities.