Judge Allows Lawsuit Against Google, Meta, and Apple Over Casino Apps

A federal judge ruled on Tuesday that Google, Meta Platforms, and Apple cannot avoid a lawsuit from gamblers who claim to have lost money on casino applications.

In a detailed 37-page ruling, U.S. District Court Judge Edward Davila from the Northern District of California dismissed the companies’ defense based on Section 230 of the Communications Decency Act, which generally shields interactive companies from liability for third-party content.

Davila clarified that Section 230 offers protection for activities like hosting gaming apps, but does not extend to the processing of payments for in-app gambling currency. He stated, “Payment processing is not an act of publishing,” and likened it to standard business operations common across various sectors.

While Davila narrowed the scope of the case by dismissing some claims, the lawsuit will proceed. Legal expert Eric Goldman from Santa Clara University remarked that the ruling raises “complicated questions” about the intersection of publishing and business models.

In an unusual step, Davila permitted the tech companies to request an immediate review of the ruling by the 9th Circuit Court of Appeals. It remains uncertain if they will pursue this option or if the appellate court will choose to hear the case.

The litigation commenced in 2020 when individuals alleged that they lost funds on virtual slot machines, claiming that Google, Meta, and Apple improperly distributed gaming apps and profited from in-app payments for virtual currency.

In previous arguments, the tech platforms continued to assert that Section 230 protected them from all claims. They stated that their payment systems do not differentiate between apps based on content. Counsel for the plaintiffs countered that the companies directly engage in illegal gambling due to their role in brokering virtual chip sales and retaining a 30% commission from those transactions.