Amazon’s Social Casino Lawsuit Moves Closer to Settlement

The long-running legal dispute between plaintiff Steven Horn and Amazon may be heading toward a settlement as new signs indicate that they are likely conducting private talks. The case could have significant implications for Amazon, potentially serving as a precedent for other similar claims and changing how the tech giant conducts its platform practices.

The Suit Alleges Amazon Facilitated Illegal Gambling

According to a joint filing submitted to the US District Court for the Western District of Washington on October 6, the two parties have made substantial progress during mediation sessions earlier this year. Horn and Amazon have jointly requested to keep the case on hold until October 10 to allow further discussions. They are expected to provide another update outlining the state of negotiations if they do not reach an understanding.

Horn initiated the lawsuit in November 2023, alleging that Amazon facilitated and profited from illegal gambling through its app distribution network. The consumer class action accuses the tech giant of supporting social casino games. These are digital offerings that mimic slot machines and other casino-style gambling activities, blurring the line between gaming and gambling.

Horn’s complaint alleges that Amazon’s app store facilitates an environment where users can gamble on their mobile devices. The lawsuit alleges that these apps, often created by the same developers who make physical slot machines, have turned virtual gambling into a 24/7 pastime, accessible from any smartphone, tablet, or browser.

Amazon Denied Responsibility for Third-Party Apps

Social casino games are facing growing legal scrutiny in the USA. Other high-profile tech firms, such as Meta and Apple, have also faced similar suits alleging that they hosted or promoted gambling products disguised as entertainment. The outcome of such cases often revolves around whether the sale of virtual chips constitutes wagering under state gambling laws.

Amazon previously moved to dismiss the case, arguing that it just operated the Amazon marketplace. The company claimed protection under Section 230 of the Communications Decency Act, a federal statute that keeps online platforms free from liability for content created or distributed by third parties. Nonetheless, the case has drawn media attention due to its implications for broader digital commerce.

A settlement could clarify the extent to which high-profile online distribution platforms are responsible for the nature and functions of the apps they host. The implications could extend beyond this individual case, affecting the tech sector’s responsibilities regarding consumer protection, regulation of microtransactions, and the blurred boundaries between entertainment and gambling.