Betting Apps May Take Advantage of Gambling Addicts and Others

Almost every cell phone user has seen advertisements for mobile betting apps and may have even downloaded these apps to give them a try. Although casino apps may initially seem like a low-stakes way to enjoy casino-themed games, gambling apps may come with a financial impact on users through repeated microtransactions.

Most casino games are free to play—meaning that consumers do not have to pay to download the apps from their app store of choice. However, in order to keep playing these games, users may be encouraged to make in-game purchases or microtransactions which provide in-game currency which is then used to play the games.

Unfortunately, these microtransactions can quickly add up to thousands of dollars. In 2019 alone, Americans lost $3.5 billion while playing “free” to play betting apps.

Betting apps can be especially harmful to consumers struggling with a gambling addiction. According to the North American Foundation for Gambling Addiction Help, compulsive gambling costs the United States around $6 billion. Unfortunately, the accessibility of betting apps may make it too easy for recovering gambling addicts to indulge.

Last year, NBC News interviewed 21 players of mobile gambling apps who revealed their addiction to the betting apps. Due to the aggressive marketing from the betting app developers, the interviewed players allegedly spent a significant amount of money despite wanting to quit. One couple interviewed by NBC allegedly spent around $150,000 over the course of just two years.

A 2017 article published in the Journal of Gambling Issues by several psychology researchers from Canadian Universities explains that the very structure of betting apps may encourage disordered gambling behaviors by exposing users to casino models. As a result, consumers may be at risk for developing a gambling addiction or backsliding into a previous addiction.

“The point here is that the potential harms of social casino games, namely, the potential for these games to develop into an addiction and thus undermine the player’s well-being, should not be understated,” the researchers write.

“While empirical investigation into social casino games is in its infancy, we […] feel that a proactive stance toward regulation and policy are needed to prevent the potential harm of these immensely popular free-play gambling-like games.”

Due to casino apps attempting to carefully skirt federal and state gambling laws, consumers who have been injured by these apps may feel that they can’t seek restitution. However, attorneys are interested in speaking to consumers who made in-app purchases through betting apps after downloading the games from the Apple App Store or Google Play Store.

Specifically, legal professionals are interested in speaking to qualified users from Alabama, Arkansas, Connecticut, Georgia, Illinois, Indiana, Kentucky, Massachusetts, Minnesota, Mississippi, Missouri, Montana, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oregon, South Carolina, South Dakota, Tennessee, Vermont, Virginia, Washington, and West Virginia.

Some consumers have already taken legal action against app store operators such as Google, including a recent betting app class action lawsuit. A February 2021 class action lawsuit argues that Apple knowingly markets and profits off of illegal gambling apps. If you are eligible for legal action, you could join other consumers in seeking compensation for abusive behaviors and illegal gambling schemes.