A U.S. District Judge ruled on Tuesday that Apple, Google, and Meta Platforms must face lawsuits accusing them of promoting illegal gambling by hosting and profiting from casino-style apps, reports Reuters.
Judge Edward Davila, based in San Jose, California, rejected the companies’ claims that Section 230 of the Communications Decency Act, which protects online platforms from liability over third-party content, shielded them from the lawsuits. While some state law claims were dismissed, the judge allowed the lawsuits to proceed under consumer protection laws, except in California.
The plaintiffs argue that the companies facilitated an illegal gambling operation by hosting apps that simulate casino games, such as slot machines, and taking up to 30% in commissions on user transactions—estimated to exceed $2 billion. The lawsuits claim these apps contributed to addiction, depression, and other psychological harms.
In his 37-page ruling, Judge Davila found that the companies did not act as “publishers” in processing payments for the apps, which undercuts their Section 230 defense. He stated that the key issue was whether they improperly processed payments for gambling apps, not whether their actions made them "bookies."
The companies have the option to appeal the ruling immediately to the 9th U.S. Circuit Court of Appeals, which had previously dismissed an appeal in May 2024 due to jurisdiction issues. The litigation, which began in 2021, continues in the U.S. District Court for the Northern District of California.
Apple, Google, and Meta did not immediately comment on the ruling, and the plaintiffs’ lawyers also declined to respond.
The cases are consolidated under the following names: 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.
Bd-pratidin English/ Jisan
