Apple, Google, and Meta are set to face major lawsuits in the United States after a federal judge refused to dismiss claims that the companies promoted illegal casino-style gambling apps. The decision was issued by U.S. District Judge Edward Davila in San Jose, California, who ruled that the companies cannot rely on Section 230 immunity from the Communications Decency Act to shield themselves from liability.
According to Reuters, plaintiffs allege that the App Store, Google Play Store, and Facebook promoted simulated slot-machine experiences that functioned like illegal gambling operations. The lawsuits argue that by processing payments and collecting commissions of up to 30% – reportedly totaling more than $2 billion – the companies acted as participants in the alleged scheme.
The plaintiffs claim these apps caused users to develop gambling addictions, leading to depression, suicidal thoughts, and other serious harms. While Judge Davila dismissed some state law claims, he allowed most consumer protection claims to proceed outside California. He also rejected the argument that the companies were merely offering “neutral tools” to developers, emphasizing instead that payment processing was central to the alleged misconduct.
This is not the first time Apple has faced legal scrutiny over its App Store practices. In previous disputes, Elon Musk alleged that Apple’s policies unfairly targeted his businesses, which led to multiple legal challenges. As covered in Apple rejects Elon Musk’s App Store bias claims, Apple has repeatedly defended its role as a platform operator. Musk even went as far as filing a lawsuit against Apple over his AI app Grok, which we detailed in Elon Musk files lawsuit against Apple over Grok app. Earlier, he also raised concerns about Apple’s dominance in app distribution, as seen in Elon Musk makes antitrust claim against Apple’s App Store.
Judge Davila also noted that the importance of the Section 230 interpretation allows Apple, Google, and Meta to immediately appeal the ruling to the 9th U.S. Circuit Court of Appeals. Previous appeals were dismissed on jurisdictional grounds, but this latest decision paves the way for a broader legal battle. The underlying cases began in 2021 and are being treated as multidistrict litigation against the three tech giants.
If the lawsuits succeed, the companies could be required to pay triple damages in addition to compensatory damages, marking a significant precedent in how platforms are held accountable for the apps they host and monetize. This development also raises questions about whether digital marketplaces should face stricter regulation, especially around apps that simulate gambling but operate outside traditional casino oversight.
