By Top Class Actions  |  February 19, 2021

Category: Legal News

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woman playing casino game online

In February 2021, Apple customers filed a gambling app class action lawsuit alleging that casino games in the Apple App Store violate gambling laws in 25 states. Apple unlawfully profits from these games at the expense of consumers, the class action lawsuit claims.

In 2019, Americans lost $3.5 billion playing “free to play” gambling apps. Although the apps are initially free, consumers may be encouraged to make in-app purchases in order to continue playing the games, the Apple lawsuit says.

Consumers may be left with significant losses as a result of gambling apps and in-app purchases purchased through the Apple App Store or Google Play Store.

Casino Games & Betting Apps: Overview

Gambling apps allow users to play casino-like games on their mobile phones without actually going to the casino. Although these apps may be free to download, they do include in-app purchases.

As a result, users may end up gambling with real money. Gambling apps typically do not offer actual cash winnings from the games. Instead, won games provide more in-app currency — allowing users to play for longer.

Are Gambling Apps Legal?

Many states have strict gambling laws which limit how businesses can offer gambling opportunities. Although casino apps are not a traditional form of gambling, these games may violate state gambling laws based on the money spent by consumers in order to play the place bets using in-app currencies.

Despite these laws, Google and Apple have been accused of promoting, enabling, and profiting from illegal gambling apps.

Casino Gambling App Class Action Lawsuits

Several gambling app class action lawsuits have been filed, accusing casino game operators, Google, and Apple of profiting from illegal gambling schemes.

In February, Apple was hit with a 25-state class action lawsuit alleging that gambling apps in the Apple App Store violate gambling laws. The company was previously hit with another casino app class action lawsuit in Tennessee.

Countless consumers lost significant funds as a result of these apps, one of the lawsuits explains. In fact, in 2019 alone, Americans allegedly lost $3.5 billion through “free to play” gambling apps. The plaintiff herself says that she lost over $250 over the past three years through in-app purchases while playing Wizard of Oz slots.

A significant portion of these losses directly benefited app store providers such as Apple, the lawsuit contends. The lawsuit says that Apple receives up to 30 percent of all gambling app revenue as a part of its app store commissions.

Apple faced similar allegations surrounding “loot boxes” — in-app purchases that provide randomized rewards. Parents took Apple to court over these boxes, arguing that their children fell victim to an illegal gambling scheme using their parents’ money.

Apple is not the only company to face illegal gambling class action lawsuits. In June 2020, Google customers filed a loot box class action lawsuit alleging an illegal gambling scheme. In December, Big Fish Casino agreed to pay $155 million to resolve claims that their Big Fish Casino, Jackpot Magic Slots, and Epic Diamond Slots violated gambling laws.

Do you lose significant money on online gambling apps? Tell us about it in the comment section below. 

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69 thoughts onApple and Google Gambling Apps Class Action Lawsuit

  1. angela mcfarquhar says:

    I have lost over $10000.00 between 2023 and 2024 on completely free casino sites(Hearts of Vegas, Cashman, and Doubledown casinos) promising things that never materialized. Also I have lost over $25,000 maybe more in the last year on sweepslots casinos. Many of them have dead spins, kick you off when you hit large win and claim technical issues therefore I lose, tiers that promises reward that you never receive and ongoing support emails that have bot responses and never discuss your questions directly. Also many other issues like not verifying identities before accepting deposits.

  2. Nichole monson says:

    I have lost in the 6 figures with online casinos and addictive gaming apps with in app purchases I purchased in the Apple Store

    1. Michael Yeager says:

      Likewise

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