A federal judge has denied requests by Apple, Google, and Meta Platforms to dismiss class-action lawsuits accusing them of promoting illegal gambling through casino-style apps on their platforms, according to Reuters.
US District Judge Edward Davila in San Jose, California, rejected the tech companies' central defense that Section 230 of the Communications Decency Act—which typically shields online platforms from liability for third-party content—protected them from the legal claims.
The lawsuits allege that Apple's App Store, Google's Play Store, and Meta's Facebook promoted what plaintiffs describe as an "authentic Vegas-style experience of slot machine gambling" through an illegal racketeering conspiracy.
Dozens of plaintiffs claim the companies collected 30 percent commissions—estimated at more than $2 billion—on transactions processed through these casino-style apps, which allegedly addicted users and triggered depression, suicidal thoughts, and other harmful consequences.
In his 37-page ruling issued Tuesday, Judge Davila determined that Apple, Google, and Meta did not function as "publishers" when processing payments, which undermined their Section 230 immunity claims. The judge wrote that "the crux of plaintiffs' theory is that defendants improperly processed payments for social casino apps."
While Davila dismissed some claims involving violations of certain state laws, he allowed most claims under consumer protection laws to proceed, except those in California.
The judge has authorised the companies to immediately appeal his decision to the 9th US Circuit Court of Appeals, citing the significance of the Section 230 legal issues involved. The litigation against the Silicon Valley defendants began in 2021.
The plaintiffs are seeking unspecified compensatory and triple damages, among other remedies. Google, Apple, and Meta did not immediately comment on the ruling.
