Federal judge denies Apple, Google, and Meta’s bid to dismiss gambling lawsuits

A federal judge has rejected Apple, Google, and Meta’s attempt to dismiss lawsuits claiming the companies promoted illegal gambling through casino-style apps and profited from user addiction.

U.S. District Judge Edward Davila ruled the companies could not use Section 230 of the Communications Decency Act to shield themselves from the claims, Reuters reported. While some state law claims were dismissed, most consumer protection claims will move forward.

The lawsuits, filed by dozens of plaintiffs, argued that Apple’s App Store, Google’s Play Store, and Meta’s Facebook promoted an “authentic Vegas-style experience” via social casino apps. The plaintiffs claim this led to depression, suicidal thoughts, and other harms while the companies collected 30% commissions on in-app transactions—estimated to exceed $2 billion.

The suits seek unspecified compensatory damages, as well as treble damages and other remedies.

In a 37-page ruling, Davila noted that the companies did not act as “publishers” when processing payments for the apps, undermining their Section 230 defense. He dismissed arguments that providing “neutral tools” or the plaintiffs’ failure to label the companies as “bookies” excused them from liability. 

"The crux of plaintiffs' theory is that defendants improperly processed payments for social casino apps," Davila wrote. "It is beside the point whether that activity turns defendants into bookies or brokers."

Davila noted that the companies could immediately appeal his ruling to the 9th U.S. Circuit Court of Appeals, citing the significance of the Section 230 issues. Previous appeals were dismissed in May 2024 for lack of jurisdiction.

The litigation, originating in 2021, continues in the U.S. District Court for the Northern District of California under the following cases:


* 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
* In re Facebook Simulated Casino-Style Games Litigation, No. 21-02777