A California federal judge has rejected motions by Apple, Google, and Meta Platforms to dismiss lawsuits accusing them of promoting social casino apps and profiting from them.
The corporations cited Section 230 of the US Federal Law, which protects online platforms from liability for third-party content. However, District Judge Edward Davila rejected their arguments, stating that this immunity does not apply to in-app payment processing, where the platforms themselves act as intermediaries and receive commissions.
Dozens of plaintiffs are known to be accusing Apple’s App Store, Google’s Play Store, and Meta’s Facebook of promoting Vegas-style slot machine gambling apps.
The plaintiffs allege that the defendants actively promoted social casino apps and exploited users’ vulnerabilities. According to them, such games led to psychological problems, including addiction, depression, and even suicidal thoughts. It is known that companies take a commission of about 30% from in-game transactions. According to the plaintiffs’ calculations, this amount exceeded $2 billion on social casino apps alone.
In their lawsuits, the victims are seeking triple damages and other legal remedies.
In the 37-page ruling, Judge Davila noted that the companies provided neutral tools to support social casino apps. He concluded that Apple, Google, and Meta did not act as ‘publishers’ when processing payments and therefore cannot use Section 230 as a defence.
“The essence of the plaintiffs’ theory is that the defendants unlawfully processed payments for social casino apps. It does not matter whether this activity makes the defendants bookmakers or brokers”, Davila said.
Judge Davila reportedly allowed Apple, Google, and Meta to immediately appeal his decision to the US Court of Appeals for the Ninth Circuit due to the importance of the issues surrounding Section 230.
However, in May 2024, the 9th Circuit Court of Appeals had already rejected previous appeals by the corporations, citing a lack of jurisdiction.
It is known that the companies have not yet provided any official comments on the claims.
The cases are currently being heard in the US District Court for the Northern District of California under separate case numbers for each company: In re Apple App Store Simulated Casino-Style Games Litigation, In re Google Play Store Simulated Casino-Style Games Litigation, and In re Facebook Simulated Casino-Style Games Litigation.
