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U.S. District Judge Edward Davila denied motions to dismiss from Apple, Google and Meta, holding that the companies were not acting as neutral “publishers” under Section 230 of the Communications Decency Act when they processed payments for casino-style apps and took a cut of in-app purchases. The ruling keeps core consumer-protection claims alive in the multidistrict litigation.

Davila also authorized an immediate interlocutory appeal to the 9th U.S. Circuit Court of Appeals given the precedent-setting stakes. A prior attempt to appeal was tossed in May 2024 for lack of jurisdiction; this time, the judge expressly cleared the path.

Plaintiffs allege addiction and billions in platform commissions

The suits, filed in 2021, claim the platforms promoted an “authentic Vegas-style” experience that hooked users on slot-machine mechanics, leading to addiction, depression and even suicidal ideation. Plaintiffs say Apple’s App Store, Google Play and Facebook brokered the chip purchases that fuel gameplay.

According to the complaints, the companies collected up to a 30% cut from transactions, generating more than $2 billion in fees. The plaintiffs seek treble damages and other relief under consumer-protection laws.

What survives and what’s next

While Davila trimmed some state-law counts, he refused to dismiss most of the consumer-protection claims (with limited exceptions), ensuring the cases move forward in the Northern District of California. The defendants did not immediately comment on the ruling.

The matters proceed under the consolidated captions “In re Apple Inc. App Store Simulated Casino-Style Games Litigation (No. 21-md-02985)”, “In re Google Play Store Simulated Casino-Style Games Litigation (No. 21-md-03001)” and “In re Facebook Simulated Casino-Style Games Litigation (No. 21-02777)”. The Ninth Circuit appeal will determine how far platform liability can extend when stores host apps and process their payments.

Source: https://www.reuters.com/sustainability/boards-policy-regulation/apple-google-meta-must-face-lawsuits-over-casino-style-gambling-apps-2025-09-30/