Apple hit with lawsuit claiming it benefits from illegal gambling apps

[The Buzz]

A class action lawsuit, lodged in the U.S. District Court for the Northern District of California on Tuesday, claims that Apple profits from illegal gambling apps on the App Store. The complaint names casino apps developed by DoubleU Games Co. and alleges that the apps constitute illegal gambling pursuant to various state laws.

In addition, the lawsuit claims that Apple operates as an "unlicensed casino" by permitting and facilitating illegal gambling, taking issue with free-to-play casino games, which use in-game currency in lieu of actual money. The lawsuit notes that users can purchase more coins or chips using actual currency.

From AppleInsider.com:

"Paying money in a game for a chance to win more playing time violates the anti-gambling laws of" at least 25 states, the complaint reads. It seeks class action status in those 25 states.

It also cites research that states most of the revenue earned from casino apps is made from a small portion of players, who are "specifically targeted" because of the large amounts of money they will spend.

"Accordingly, Apple actively enables, permits, promotions, and profits from illegal gambling," the complaint contends.

The plaintiffs named in the lawsuit are Joshua McDonald and Michael Helsel. The former plaintiff is said to have spent $4.99 on in-game currency, while Helsel is said to have made at least five separate coin purchases of at least $107.99 each, as well as additional purchases.

The lawsuit, which demands a jury trial, asks for an injunction prohibiting Apple from taking part in the allegedly illegal action. It also seeks statutory damages and other costs.

This isn't the first lawsuit claiming that Apple hosts or benefits from illegal gambling apps.

Back in October 2020, a woman sued Apple for hosting illegal gambling apps after she spent thousands on in-game coins. Another lawsuit from January targeted Apple for its 30% cut of casino app revenue. In January, a class action lawsuit homed-in on Apple and casino-style apps developed by Zynga.

Read the article and the entire complaint here: https://appleinsider.com/articles/21...-gambling-apps

[mickyfu]

I have been waiting for this for years, I'm surprised the UKCG are not all over these "free play" games where children can gamble real money to win fake money. They seem more interested in telling working adults how much they are allowed to spend of their own money.

[universal4]

Interesting.

My guess is they will fight against the the general games apps being removed, but this could lead them to fairly quickly dumping many other apps.

Only time will tell what kind of response this may generate.

Rick
Universal4

[Cash Bonus]

It will be interesting to see where this goes. But honestly, there are people out there who will do whatever it possibly takes for a money grab.