Suits must go on
US District Judge Edward Davila has tossed requests by Meta, Google, and Apple to dismiss “illegal gambling conspiracy” class action lawsuits.
promoted illegal Vegas-themed slot machine gambling
Over 20 plaintiffs began the litigation in 2021, claiming that Meta’s Facebook, Google’s Play Store, and Apple’s App Store promoted illegal Vegas-themed slot machine gambling by hosting addictive, casino-style apps and pocketing fat commissions.
On Tuesday, Judge Davila rejected the trio’s main argument that a rule under Section 230 of the federal Communications Decency Act protects online platforms from third-party content liability. Or, that the section covers the Silicon Valley giants from subsequent class actions.
In his 37-page decision, Davila essentially stated that the three firms processing payments from the casino app owners negated any lawful immunity.
Claims rejected
The judge also threw out another claim on Tuesday stating the digital giants should be excused from liability, because those filing the suits didn’t label Meta et al as “bookies.”
“The crux of plaintiffs’ theory is that defendants improperly processed payments for social casino apps,” Davila established. The District Judge added it was therefore “beside the point whether that activity turns defendants into bookies or brokers.”
Davila told Meta, Google, and Apple that partly because Section 230 issues are deemed high priority, the trio can immediately contest his ruling with the 9th US Circuit Court of Appeals.
trio can immediately contest his ruling
While the three firms can now appeal to the 9th Circuit, it’s the same court that dismissed the defendants earlier appeal in May 2024, citing a lack of jurisdiction.
Ultimately, the focus of the lawsuit implies the three firms formed a “social casino enterprise” and forged “dangerous” third-party ties with slots developers with the goal of luring Californians to play the games on social casino apps.
Addictive apps
After Tuesday’s ruling, Meta, Google, and Apple’s legal teams remain on the clock to appeal or eventually go to trial and fight the claim they allegedly triggered mental health issues, thoughts of suicide, and other outcomes among Californians by promoting “casino-style apps that addict users.”
The plaintiffs also claim the tech giants brokered and collected commissions estimated at over $2bn. Their lawsuits are seeking remedies that include unspecified compensatory and triple damages.
