Yellow Social Interactive, the operator behind Pulsz and Pulszbingo, has agreed to an estimated $14 million class action settlement over allegations that its sale of virtual coins violated gambling laws in six states. The agreement received preliminary court approval on Aug. 31, 2026, although the settlement still requires final approval.
The case targeted the way consumers spent money playing Pulsz and Pulszbingo. The lawsuit alleged those purchases ran afoul of gambling laws in Alabama, Ohio, New Jersey, Massachusetts, Tennessee and Kentucky. The settlement resolves the claims without requiring the litigation to continue through a final determination on the underlying allegations.
Eligibility varies by state. Alabama players are covered for purchases made from March 8, 2022, through Aug. 31, 2026, while Tennessee’s period begins Nov. 12, 2022. Kentucky’s starts June 29, 2023. Ohio, New Jersey and Massachusetts players are covered for purchases beginning Feb. 19, 2024. All six periods end Aug. 31, 2026.
The case also fits into a longer legal history surrounding Yellow Social Interactive’s business model. In a separate federal dispute involving an Ohio Pulsz player, court records show claims were brought under Ohio statutes allowing recovery of money or other items of value lost through certain games or wagers. That case involved an arbitration dispute and was separate from the $14 million settlement.
Under the new settlement, eligible class members who take no action are slated to automatically receive virtual Gold Coins equal to 27% of their net purchase amount during the applicable period, after settlement administration expenses and fees. The conversion rate used for that benefit is 10,000 virtual coins per dollar.
Players who prefer money can submit an election form for a cash payment equal to 23% of their net purchase amount, again subject to applicable expenses and fees. However, cash elections come with an additional limitation. If valid cash requests exceed 25% of the settlement’s estimated total benefit, cash payments will be reduced proportionally, with the remainder of a class member’s benefit provided as virtual Gold Coins.
Eligible players who want the cash option have until Nov. 30, 2026, to submit an election form online or have a mailed form postmarked. People receiving the automatic virtual-coin benefit do not need to file a claim form.
The court has scheduled a final approval hearing for Dec. 31, 2026. Settlement benefits will not begin to go out until final approval is granted and any appeals are resolved, meaning preliminary approval does not make payments immediate.
The settlement comes against a broader backdrop of court disputes involving social casino-style games. In a January 2025 federal ruling involving Yellow Social Interactive, the U.S. District Court for the Northern District of Alabama described litigation alleging that online casino-themed games violated Alabama law. The court noted that the parties disputed whether the games at issue qualified as illegal gambling under state law.
That distinction remains important. The roughly $14 million agreement resolves the claims brought against Yellow Social Interactive rather than serving as a blanket judicial ruling that Pulsz’s model violates gambling law nationwide. For affected players, the immediate questions are whether their purchases fall within one of the six state-specific periods and, if so, whether they want the automatic virtual-coin benefit or elect the cash alternative before the November deadline.
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