A US federal judge has decided that Apple, Google, and Meta must handle class-action lawsuits. These lawsuits claim they made money from illegal gambling through casino-like mobile apps. This decision is a blow to the tech companies, which tried to get rid of the claims by using protections under federal law.
Judge Rejects Tech Giants’ Section 230 Defense
People first filed the lawsuits in 2021. They say the three big tech companies hosted and pushed social casino apps that copy slot machines and other gambling experiences. The people suing claim these platforms did not just share these apps. They also handled payments for fake in-game chips and kept about 30% of the money. The lawyers representing the claimants think this has brought in over $2 billion in revenue.
In a 37-page ruling on September 30, US District Judge Edward Davila shot down the companies’ main defense that Section 230 of the Communications Decency Act protected them from liability, reported Reuters. Courts interpret this law to shield online platforms from responsibility for content that third parties create. However, Davila decided that handling money transfers went beyond a neutral publisher’s role, weakening the Section 230 argument.
The judge stressed that the plaintiffs’ case focused on how the companies enabled payments for the casino apps, not on the apps’ content. He pointed out that it did not matter whether the firms acted as “bookies” or “brokers” when it came to the main allegations.
Ruling in Social Casino Lawsuit Could Redefine Tech’s Legal Protections Under Section 230
Davila threw out some claims based on individual state laws, but let most consumer protection claims move forward, except those tied to California statutes. He also recognized how important the Section 230 issues were and allowed Apple, Google, and Meta to appeal right away to the Ninth US Circuit Court of Appeals.
The plaintiffs, who represent dozens of users, say the casino-style apps pushed people to gamble, which sometimes led to depression and thoughts of suicide. They want unspecified compensatory damages, plus triple damages and other remedies.
As of now, none of the three companies has said anything about the ruling. When asked, a Google spokesperson would not comment, and Apple and Meta did not answer requests right away.
Legal experts say this ruling might shake up the tech world big time. Section 230 has been seen as a key shield for online platforms for a long time, cutting down their responsibility for what others post. If higher courts agree with Davila’s reasoning, it could shrink this protection and pave the way for more lawsuits aimed at how major tech companies do business.The case is still going on in the US District Court for the Northern District of California, combining three separate suits against Apple, Google, and Meta.