Apple, Google, and Meta face ongoing litigation over casino-style apps after court ruling

A federal judge has ruled that Apple, Google, and Meta cannot dismiss lawsuits accusing them of promoting and profiting from casino-style apps offered on their platforms, rejecting their reliance on Section 230 of the Communications Decency Act as a defense, as reported by Reuters.

The class actions, filed in the Northern District of California, claim that the companies violated state consumer protection laws by distributing so-called “social casino” apps, which allow users to purchase virtual chips to continue gambling-like play. Plaintiffs argue these apps are designed to mimic the addictive qualities of slot machines and other casino games, with tech platforms allegedly collecting commissions from user spending. Some claims even accuse the companies of engaging in racketeering.

In a 37-page opinion, U.S. District Judge Edward Davila concluded that Section 230 does not shield the defendants in this context because the claims focus on payment processing and profit-taking, rather than the publication of third-party content. Davila emphasized that whether the companies acted as “bookies” was irrelevant to the central argument: they allegedly facilitated and benefited from transactions tied to simulated gambling.

While some state law claims were dismissed, the lawsuits will move forward on key consumer protection allegations outside California. Davila also granted Apple, Google, and Meta the right to immediately appeal to the Ninth Circuit due to the broader legal implications of Section 230 in cases involving digital marketplaces and financial transactions.

The lawsuits, first filed in 2021, allege that Apple’s App Store, Google’s Play Store, and Meta’s Facebook platform promoted “Vegas-style” gaming experiences that drove users to spend heavily. Plaintiffs claim the companies took commissions estimated at more than $2 billion from in-app purchases, while users reported harms ranging from financial loss to depression and suicidal thoughts.

The cases are being heard under multidistrict litigation: In re Apple Inc. App Store Simulated Casino-Style Games Litigation (No. 21-md-02985), In re Google Play Store Simulated Casino-Style Games Litigation (No. 21-md-03001), and In re Facebook Simulated Casino-Style Games Litigation (No. 21-02777).