In this episode of Upwardly Mobile, we dive into the significant legal challenges facing major technology companies—Apple, Google (Alphabet), and Meta Platforms—as they are forced to defend themselves against class action lawsuits alleging that they promoted and profited from illegal social casino gambling apps. A recent ruling by U.S. District Judge Edward Davila in San Jose, California, denied the companies' requests to dismiss the lawsuits. The plaintiffs, numbering in the dozens, contend that the companies' platforms—Apple’s App Store, Google’s Play Store, and Meta’s Facebook—promoted an “authentic Vegas-style experience of slot machine gambling” through an allegedly illegal racketeering conspiracy. Key Takeaways from the Litigation:
- The Liability Claim: The core claim is that the defendants "willingly assist, promote and profit from" allegedly illegal gambling. This is achieved by:
- Offering users access to the apps through their stores.
- Taking a substantial percentage of consumer purchases (estimated at 30% commission, totaling over $2 billion) on in-app transactions for items like Game Coins and Sweeps Coins.
- Processing these allegedly illicit transactions using proprietary payment systems.
- Using targeted advertising to "shepherd the most vulnerable customers" to the casino apps.
- The Section 230 Defense Rejected: Apple, Google, and Meta argued that Section 230 of the federal Communications Decency Act protected them from liability because this law shields online platforms from lawsuits over third-party content. Judge Davila rejected this argument, finding that the companies did not act as "publishers" when processing payments. The judge emphasized that the "crux of plaintiffs’ theory is that defendants improperly processed payments for social casino apps".
- "Neutral Tools" Argument Undercut: The court called it irrelevant that the companies provided "neutral tools" (like payment processing) to support the apps.
- Damages Sought: The lawsuits seek unspecified compensatory and triple damages, among other remedies.
- Appeals and Case History: Judge Davila allowed the defendants to immediately appeal his decision to the 9th U.S. Circuit Court of Appeals, acknowledging the importance of the Section 230 issues. The litigation against the Silicon Valley-based companies began in 2021.
- Additional Suits: Separately, a new lawsuit was filed against Apple and Google by lead Plaintiff Bargo (not naming the social casino operators), alleging the distribution of "patently illegal gambling software" in New Jersey and New York. This complaint includes legal claims under NJ and NY gambling loss recovery statutes, consumer protection laws, and RICO laws.
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approov.io. Relevant Source Materials & Case Information:
- Article Reference (Legal Analysis): Excerpts from "Apple and Google Hit with New Social Casino Gambling Lawsuit," National Law Review (October 02, 2025). (Article written by James G. Gatto of Sheppard, Mullin, Richter & Hampton LLP).
- Article Reference (News): "Apple, Google, Meta must face lawsuits over gambling apps," Honolulu Star-Advertiser (Oct. 1, 2025).
- Article Reference (Judicial Denial): "Judicial Denial for Tech Giants in Casino App Lawsuits" (Sept 30).
- Amicus Brief Reference: In re: Casino-Style Games Litigation (Nos. 22-16914, 22-16916, 22-16888, 22-16889, 22-16921, 22-16923) U.S. Court of Appeals for the Ninth Circuit.
- District Court Case Reference (Northern District of California): 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...
