A federal judge has cleared the path for lawsuits against Apple, Google, and Meta, rejecting the companies’ motions to dismiss claims that they facilitated illegal gambling through casino-style apps. The decision, handed down on Tuesday by U.S. District Judge Edward Davila in San Jose, California, challenges the tech giants’ reliance on Section 230 of the Communications Decency Act, which typically shields online platforms from liability for third-party content.
The lawsuits assert that Apple’s App Store, Google’s Play Store, and Meta’s Facebook promoted casino-style games simulating a “Vegas-style experience” and collected commissions from these apps. Plaintiffs argue that the platforms’ practices fostered addiction, depression, and even suicidal thoughts among users while taking approximately 30% of all transactions, estimated at over $2 billion. The legal actions seek unspecified compensatory and triple damages, among other remedies.
Judge Davila dismissed some claims under certain state laws but denied motions to dismiss all consumer protection claims, except those under California law. The court concluded that Apple, Google, and Meta did not act as “publishers” simply by processing payments, undermining their Section 230 defense.
“The crux of plaintiffs’ theory is that defendants improperly processed payments for social casino apps,” Davila wrote. “It is beside the point whether that activity turns defendants into bookies or brokers.”
He also rejected the argument that providing “neutral tools” or failing to label themselves as “bookies” absolved the companies of responsibility.
Immediate Appeal and Legal Implications
The ruling allows Apple, Google, and Meta to immediately appeal to the 9th U.S. Circuit Court of Appeals, emphasizing the importance of Section 230 issues in this case. Previously, the 9th Circuit dismissed earlier appeals in May 2024, citing a lack of jurisdiction.
The litigation began in 2021, targeting the Silicon Valley giants for allegedly profiting from addictive gaming. The specific cases in the U.S. District Court for the Northern District of California are:
- 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
- In re Facebook Simulated Casino-Style Games Litigation, No. 21-02777
Allegations and Potential Industry Impact
The lawsuits claim the platforms created a system where users were drawn into repetitive gambling-like behavior while the companies benefited financially. Plaintiffs contend this exploitation caused significant emotional and financial harm.
Google, Apple, and Meta have not immediately commented on the ruling, nor have the plaintiffs’ lawyers responded to requests for comment.
Legal experts note that this decision could reshape how digital platforms are held accountable for the content they host and profit from. By denying dismissal, the court emphasizes that processing payments for casino-style apps may be viewed as active participation rather than passive hosting. If upheld, this ruling could influence tech companies’ app management policies, revenue models, and user protections in the U.S., particularly around addictive gaming.
This case underscores the growing scrutiny of app ecosystems and the potential liabilities platforms face when their services facilitate high-risk behaviors, marking a potential turning point in regulating digital gambling content.
Source:
“Apple, Google, Meta must face lawsuits over casino-style gambling apps”, reuters.com, October 1, 2025
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