A federal judge in California has denied attempts by Apple, Google, and Meta Platforms to dismiss lawsuits accusing them of promoting illegal gambling through casino-style mobile apps. On 30 September (Tuesday), US District Judge Edward Davila in San Jose rejected the companies’ core argument that Section 230 of the Communications Decency Act shielded them from liability. The law typically protects online platforms from being held responsible for third-party content, but Davila concluded that the claims in these cases go beyond simple publishing.
Allegations of racketeering and addiction
The lawsuits allege that Apple’s App Store, Google’s Play Store, and Meta’s Facebook platform helped facilitate an “authentic Vegas-style experience” through casino-style games. Plaintiffs say the companies ran an illegal racketeering conspiracy by promoting apps that addict users, trigger depression and suicidal thoughts, and profit from addictive gambling behaviours.
The tech giants are accused of collecting 30 percent commissions on in-app transactions, with estimates suggesting the companies earned more than $2 billion from social casino games. Dozens of plaintiffs argue that the platforms acted as more than passive hosts, claiming their payment processing systems and promotional tools directly contributed to the spread of illegal gambling.
According to the court filing, the companies allegedly worked closely with casino app developers by providing marketing tools, featuring the apps to increase downloads, and using targeted advertising to attract “whales”—high-spending users. They also acted as payment processors, collecting money for virtual chips, taking their share, and remitting the rest to developers, which plaintiffs likened to the role of bookmakers.
Section 230 defence rejected
In his 37-page ruling, Judge Davila stated that Apple, Google, and Meta did not act as “publishers” when processing payments for the games, undermining their reliance on Section 230. “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.”
The court further noted that Section 230 immunity does not apply where platforms materially contribute to or co-develop unlawful practices, and here, the claims target the companies’ own conduct in distribution, promotion, and payment processing rather than mere third-party content.
While Davila dismissed some claims under certain US state laws, he allowed the majority of consumer protection claims to proceed, with the exception of those brought under California law.
Path to appeal and next steps
The judge authorised Apple, Google and Meta to immediately appeal his ruling to the 9th US Circuit Court of Appeals, citing the importance of the Section 230 issues at stake.
The litigation, which began in 2021, is being heard in the US District Court for the Northern District of California. Cases include:
- 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)
The plaintiffs are seeking unspecified compensatory damages and treble damages, among other remedies.
Lawsuits and amendments
In March, Apple and Google were named in a refiled federal class-action lawsuit alleging their direct involvement in facilitating illegal gambling operations via sweepstakes casinos. The case, filed in the US District Court for the District of New Jersey, accuses both companies of violating the federal Racketeer Influenced and Corrupt Organizations (RICO) Act by profiting from what plaintiffs call an unlawful gambling enterprise.
Meanwhile, Meta announced a new set of restrictions governing gambling and gaming-related ads in July, with precise rules on licenses, mandatory approvals, and advertiser responsibilities. A move that industry observers see as part of a broader global trend toward tighter, more transparent regulation of the online gambling sector. These signal a push to close loopholes in influencer marketing and ensure uniform accountability across all promotional channels. By requiring full transparency from affiliates and banning underage targeting, Meta is aligning its platform with rising global standards for responsible gambling advertising.
The latest decision highlights growing scrutiny of tech platforms over their role in hosting and monetising apps that resemble unregulated online gambling
Subscribe HERE to SiGMA’s Top 10 News countdown and SiGMA’s weekly newsletter to stay up to date with all the latest iGaming News from the world’s iGaming authority, and benefit from subscriber-only offers.
