Apple, Google, Facebook illegal casino game class actions trimmed

Update: 

• A California judge dismissed claims in a multidistrict litigation that alleges Facebook, Google and Apple participated in “illegal internet gambling” conspiracies through their online social casino game apps. 
• On Sept. 9, U.S. District Judge Edward J. Davila granted in part and denied in part motions to dismiss from the tech companies; however, he certified an order for immediate appeal, saying the case could benefit from the Ninth Circuit’s input.
• Judge Davila ruled that the social media companies had immunity regarding third-party content published on their platforms under the Communications Decency Act but allowed that “reasonable minds could differ” on the outcome of the case.
• The class action lawsuits claim the free-to-play casino games offered by the tech giants are supposed to be illegal in California. The companies allegedly made “dangerous partnerships” with the games’ developers to turn a profit despite the risk of losing money for those who play the games.

Apple Google Facebook gambling conspiracy class action lawsuit overview:

• Why: The class action lawsuits contain similar charges against the tech companies for participating in an illegal gambling enterprise.
• Who: A California federal judge consolidated a number of class action lawsuits against Facebook, Google, and Apple.
• Where: The consolidated claims are pending in California federal court.

(Dec. 1, 2021)

Facebook, Google, and Apple will face a number of consolidated class actions lawsuits that allege each company participated in “illegal internet gambling” conspiracies through their online social casino game apps. 

US District Judge Edward J. Davila granted a motion to consolidate all Facebook actions with each other, all Apple actions with each other, and all Google actions with each other, for pretrial purposes. However, the class action lawsuits against one company will not be consolidated with those against another company, ruled the judge. 

The class action lawsuits claim the free-to-play casino games offered by the tech giants are supposed to be illegal in California. The companies allegedly made “dangerous partnerships” with the games’ developers in order to turn a profit, despite the risk of losing money for those who play the games. This joint conspiracy allegedly damages interstate commerce and interstate commercial activity.

There are 25 plaintiffs across the three class action lawsuits. They seek to win relief for Class Members, prevent Google, Facebook, and Apple from continuing to offer the social casino games, and make the companies return their supposedly ill-gotten profits. 

Casino games pose risk for players, profit for hosts, claims class action

The casino games in question are free to download and play from Facebook, Google, and Apple, but require players to buy virtual chips with real money. 

Once bought, the virtual chips are valuable only in the game and cannot be withdrawn again as real money, points out the class action. 

Indeed, the class action lodged against Facebook details several examples of players who lost money from playing these games. 

Further, the casino games allegedly turn a massive profit for the hosting platforms. The complaint claims that Facebook stands to gain 30 percent of profits from the games for promoting and hosting the apps, while also acting as the bank that collects players’ purchases.

For example, it is expected that game developer DoubleDown Interactive will sell about $400 million in virtual chips to DoubleDown Casino players. DoubleDown Interactive would make about $240 million from that amount, and Facebook would receive $120 million. 

The three tech giants aren’t the first companies to land in hot water for these types of games. In June of 2020, a $155 million settlement was reached between Big Fish Games, a game developer, and two class action lawsuits after plaintiffs lost an unspecified amount of money from playing the Big Fish Casino game.

Did you play a “free” casino game on Facebook, Google, or Apple? Sign up to start a class action lawsuit here!

The plaintiffs are represented by Rafey S. Balabanian, Todd Logan, and Brandt Silver-Korn of Edelson PC.

The Apple Google Facebook Gambling Conspiracy Class Action Lawsuits are In Re: Apple Inc. App Store Simulated Casino-Style Games Litigation, Case No. 5:21-md-02985-EJD; In Re: Google Play Store Simulated Casino-Style Games Litigation, Case No. 5:21-md-03001-EJD; and Wilkinson, et al. v. Facebook Inc., Case No. 5:21-cv-02777-EJD, all in the US District Court for the Northern District of California San Jose Division.

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• Google May See End to Play Store Loot Boxes Class Action Lawsuit
• Google Chrome Users Ask Judge to Certify Class Action Claiming Google Illegally Collects Browser Data