Amazon Sued Over Claim That It Offers Illegal Casino Apps

e-commerce giant Amazon, is facing a proposed consumer class-action lawsuit accusing the company of operating an “illegal internet gambling enterprise.”

The lawsuit, filed by a Nevada resident who claims to have been addicted to illegal online slot games, alleges that Amazon distributed over 30 illegal casino-style apps to consumers, thereby engaging in a “dangerous partnership” with virtual casinos. The complaint cites a 2018 U.S. appeals court ruling that declared “social casino” apps illegal under Washington state gambling law. This case is just one among many targeting online gambling platforms.

According to the lawsuit, Amazon and social casinos have found a way to bring slot machines into the homes of consumers throughout the United States, operating 24/7, 365 days a year. The games in question are free to play and do not offer cash payouts. Instead, users can win virtual chips and are encouraged to buy more to continue playing. However, despite the knowledge that social casinos are deemed illegal, Amazon allegedly maintains a 30% financial interest in these apps by brokering slot machine games, driving customers to them, and acting as the bank.

Social casino apps has led to a series of legal challenges and debates surrounding their classification and regulation. In 2022, a California federal judge ruled that Apple, Meta (formerly Facebook), and Google could be held liable for processing payments related to virtual chips used in social casino apps. This decision has sparked appeals from these tech giants, with the cases still pending in the 9th U.S. Circuit Court of Appeals. The outcome of these appeals will have significant implications for the future of the online gambling industry.

The class-action lawsuit against Amazon seeks damages, restitution, and other court orders on behalf of “tens of thousands of consumers.” The plaintiffs’ law firm, Edelson, has a track record of securing substantial settlements in similar litigation related to virtual casino apps. Todd Logan, who leads Edelson’s gambling practice, expressed his anticipation for trying the case before a jury of Amazon’s peers. The outcome of this lawsuit may set a precedent for future legal battles involving online gambling platforms and their partnerships.