Tech Giants Apple, Google, and Meta to Face Lawsuits Over Casino-Style App Promotion
SAN FRANCISCO – Apple, Google, and Meta will proceed to defend themselves in court against allegations they facilitated illegal gambling through casino-style applications available on their platforms. A California court rejected the companies’ attempts to dismiss a consolidated lawsuit filed in 2021, opening the door for a full trial.
The suit alleges the tech companies created a “bona fide betting surroundings” by hosting and promoting apps offering online slot games. Plaintiffs claim apple and Google’s app stores,alongside Meta’s Facebook platform,actively participated in processing payments and collecting a 30% commission on transactions – generating over $2 billion in revenue. The plaintiffs are seeking unspecified damages, characterizing the arrangement as a concealed exploitation scheme.
The companies argued for dismissal under Section 230 of the Communications Decency Act, which generally shields online platforms from liability for third-party content. However, Judge Davila ruled this protection did not apply, stating the companies’ direct involvement in payment processing undermined their claim of immunity. “The essence of the plaintiffs’ theory is that the defendants improperly processed payments for social casino applications.It is not importent if that activity makes the defendants ‘books’ or intermediaries,” Davila wrote in the ruling, as reported by reuters.
While claims based on certain state laws were dismissed, the majority of demands based on consumer protection norms will move forward, excluding those from California. Judge Davila has granted the companies permission to immediately appeal to the Court of Appeals, which previously declined to rule on the case in May 2024 due to jurisdictional concerns.
