Apple, Google and Meta in Huge Legal Battle Over Social Casino Apps

Casino apps were the focal point in a San Jose courtroom as a legal battle hots up involving three of the ‘big tech’ firms, Apple, Google, and Meta, in San Jose this week.

At the heart of the case, the three tech giants asked a federal judge to throw out the case in which they are all accused of profiteering from casino-style gambling apps on their platforms.

Apple, Google, and Meta are looking to leverage Section 230, a law that shields platforms from liability over third-party content. While plaintiffs argue they are providing user data to the casino game makers which is allowing them to target vulnerable users and problematic gamblers.

The case’s argument focuses on the commission rates generated by user app downloads, which can be anywhere up to 30%.

Granted, it’s not just the major platforms who are keeping an eye on the proceedings, as should the adjudication go against the tech giants, it could open the door to lawsuits against payment processors such as MasterCard and VISA, who likewise generate revenues from in-game purchases.

Pointing to the fact that the tech companies aren’t sharing in the gambling profits and are utilizing its existing transactional fee model instead, Apple’s representative Colin McGrath of DLA Piper stated, “It’s not profit-sharing. It’s simply facilitating a transaction.”

However, Todd Logan of Edelson PC, who is acting attorney for the plaintiffs, doesn’t buy that, singling out casino app names such as ‘Infinity Slots’ and ‘Lots of Slots’ as obvious indicators of real-money gambling.

It will likely be hard to dissuade the court that virtual chips purchased in casino-style apps don’t equate to real-world gambling, when an estimated $6 billion worth of social casino virtual chips were purchased in 2020 alone.

Then, when you consider that nine of Facebook’s twelve highest-grossing apps in 2021 were social casinos, the extent to which Meta is the financial beneficiary of this trend seems hard to quarrel with.

As of yet, Judge Edward Davila has not ruled on Apple, Google, and Meta’s recent motion to have the case thrown out, but should the verdict go against them, the outcome could set a new precedent for social-style casino gambling.

For sports bettors and gambling enthusiasts, the lasting impact of this legal battle could result in them being denied access to these casino gambling apps available through the trio’s platforms in favor of real money slot games instead.