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Post by : Rameen Ariff
A federal judge has ruled that Apple, Google, and Meta Platforms cannot dismiss lawsuits accusing them of promoting illegal casino-style gambling apps that target users and earn billions in commissions.
The lawsuits claim that the App Store, Play Store, and Facebook offered an “authentic Vegas-style experience” through apps that allegedly triggered addiction, depression, and other mental health issues. Plaintiffs argue that the tech giants collected around 30% commissions, amounting to over $2 billion, while exploiting users.
U.S. District Judge Edward Davila in San Jose, California, rejected the companies’ argument that Section 230 of the Communications Decency Act protects them from liability over third-party app content. He noted that processing payments for these gambling apps does not make the companies neutral “publishers,” and therefore, they remain responsible under consumer protection laws.
While some state law claims were dismissed, the judge allowed most claims to proceed, opening the way for immediate appeals to the 9th U.S. Circuit Court of Appeals due to the legal significance of Section 230 issues. The appeals court had previously dismissed earlier cases in May 2024 for lack of jurisdiction.
The lawsuits, which began in 2021, seek compensatory and triple damages for affected users. They are part of three cases in the Northern District of California: 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.
This ruling marks a significant step in the legal battle over social casino apps, highlighting growing concerns about online gambling, consumer protection, and tech company accountability.
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