A U.S. federal judge on Tuesday rejected bids by Apple, Google, and Meta Platforms to dismiss lawsuits alleging they profited from illegal casino-style apps that exploit users.
U.S. District Judge Edward Davila said Section 230 of the Communications Decency Act, which shields platforms from liability over user content, does not apply to payment processing. “The crux of plaintiffs’ theory is that defendants improperly processed payments for social casino apps,” Davila wrote.
Plaintiffs accuse the companies of promoting addictive slot-machine-style apps, collecting commissions of up to 30%, and fueling harms including depression and suicidal thoughts. Damages sought include compensatory and treble damages.
Davila allowed immediate appeals to the 9th U.S. Circuit Court of Appeals, citing the importance of the Section 230 issues. The consolidated cases, first filed in 2021, are pending in the U.S. District Court for the Northern District of California.
