Amazon Fights Back Against Social Casino App Lawsuit

Article by : Erik Gibbs Jan 10, 2024

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Last week, legal representatives from Amazon issued a response to their inclusion as a defendant in a potential class-action lawsuit. The lawsuit alleges that Amazon colluded with developers of social casino apps to facilitate what the plaintiffs claim amounts to illicit gambling activities.

In November, Amazon found itself implicated in a legal challenge that questions the online marketplace’s approval of free-to-play social casino applications.

Despite games like Slotomania and Double Down Vegas Slots being accessible for free, users have the option to buy extra gameplay credits when they exhaust their initial allocation of spins.

It’s important to note that users are unable to recoup the money spent on acquiring these credits.

Steve Horn, the plaintiff from Nevada, alleges that he developed an addiction to social gaming applications and engaged in over 320 financial transactions while playing games downloaded from the Amazon Apps & Games Store.

In the legal proceedings initiated in the Western District of Washington, Amazon’s legal representatives argue for the dismissal of the case.

They contend that Section 230 of the Communication Decency Act (CDA) of 1996 provides immunity to internet platforms against legal claims related to third-party content.

Horn’s lawsuit asserts that Amazon functioned as the financial institution for the social casino apps. Amazon, according to the allegations, also played a role in facilitating the operation of what he deems “illegal slots.”

Amazon contests the validity of the social gaming lawsuit, asserting that it lacks merit.

However, if the case is not dismissed, legal representatives for the tech giant propose that the litigation be temporarily halted until similar lawsuits against Apple, Google and Meta’s Facebook conclude.

The Ninth US Circuit Court of Appeals is anticipated to address these cases in April or May, as reported by Reuters.

In its legal filing, Amazon argues that due to the anticipated resolution of the Ninth Circuit’s consolidated appeal, which is expected to either dismiss this case entirely or significantly simplify the Communication Decency Act (CDA) immunity issue, the company respectfully urges the Court to suspend proceedings until the Ninth Circuit renders its decision temporarily.

This approach is suggested to avoid unnecessary allocation of resources by both the involved parties and the Court on a complex matter that the Ninth Circuit is soon expected to clarify. Additionally, pausing the case would allow the Court to benefit from the Ninth Circuit’s guidance before assessing the viability of Mr. Horn’s claims.

The Communication Decency Act (CDA) provides legal protections to app stores, but it does not exempt a company from knowingly violating criminal law.

Steve Horn alleges that Amazon allowed illegal casino apps on its platform, citing a 2018 Ninth Circuit ruling on Big Fish Casino as a precedent for illegal online gambling.

Despite awareness, Amazon maintains a 30% financial stake in the profits from slot machine games, making it liable as a co-conspirator in an illicit gambling operation.

Social gaming apps in the US generated over $6 billion in revenue last year.