A US judge has denied Apple, Google, and Meta’s request to dismiss lawsuits claiming they helped promote illegal gambling through casino-style apps. As reported by Reuters, the lawsuits say these apps were addictive and the companies earned large commissions from them. The plaintiffs argue that hosting these apps caused harm to users, including depression and suicidal thoughts, and earned the companies billions in commissions.
While some state law claims were dismissed, most consumer protection claims are allowed to continue, meaning the case against the tech giants can move forward.
Judge Rejects Section 230 Defence
US District Judge Edward Davila in San Jose, California, said Section 230 of the federal Communications Decency Act, which usually protects platforms from liability for third-party content, does not apply here.
The judge said Apple, Google, and Meta were involved in processing payments for these apps, which goes beyond just hosting content, as further reported by Reuters.
He dismissed some claims under certain state laws but allowed most consumer protection claims to continue, except in California.
This ruling means the companies could be held responsible for their role in running and earning from the apps.
Allegations & Impact On Users
The lawsuits, filed by dozens of plaintiffs, claim that Apple’s App Store, Google Play Store, and Facebook promoted a “Vegas-style” gambling experience. Plaintiffs say the apps caused serious harm, including depression and suicidal thoughts.
They also claim the companies collected around 30% in commissions, reportedly over $2 billion. Judge Davila noted that the companies did not act as “publishers” when handling payments, so Section 230 protections don’t apply.
He added that whether the companies were “bookies” or brokers does not change their responsibility. The companies are allowed to appeal immediately to the 9th US Circuit Court of Appeals.
This case, which started in 2021, has been closely watched for its impact on online platforms and Section 230 law.