More Class Actions Allege Google, Apple Profit from ‘Illegal’ Gambling Game Apps

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More proposed class action lawsuits allege Google and Apple profit from their distribution and sale of gambling game apps that afford players only the opportunity to win more playing time, and not actual cash “winnings.” 

The four separate lawsuits, filed in California in February and March, center respectively on casino-style gambling games developed by Grande Games Limited; DoubleU Games Co., Ltd.; Product Madness, Inc.; and Zynga, Inc. The cases, which utilize similar formatting and were filed by the same two law firms, allege Google and Apple “permit[] and facilitate[] illegal gambling by operating as an unlicensed casino,” particularly by offering through the Play and App stores casino-style games in which players have no chance to recover the real money they’ve lost during gameplay.

According to the lawsuits, Apple and Google have run afoul of gambling statutes in 25 states—Alabama, Arkansas, Connecticut, Georgia, Illinois, Indiana, Kentucky, Massachusetts, Minnesota, Mississippi, Missouri, Montana, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oregon, South Carolina, South Dakota, Tennessee, Vermont, Virginia, Washington, and West Virginia—all of which have established civil remedies aimed at curtailing excessive gambling losses. 

While the casino-style games at issue are free to download and play, they offer additional content and services within the app via “in-app purchases,” the suits read. Money spent by players on in-app purchases goes directly through Apple and Google, who take a cut, before the rest makes its way to the game’s developer, according to the cases. Per the lawsuits, developers are mandated by Apple and Google to use the companies’ billing systems as a method of payment if they offer in-app purchases. The service fees Google and Apple retain are equivalent to 30 percent of the in-app payment, according to the complaints. 

When a player loses – that is, runs out of coins or chips – in a casino-style game made available by Apple or Google, they have the opportunity to spend actual money to buy additional coins or chips for the chance to get back into the game, the lawsuits say. According to the suits, however, therein lies the issue: while consumers can spend money on the games, they cannot win back money, only more playing time. 

Each of the 25 states listed above has some version of a law that makes it illegal for a player to not have an opportunity to recover money, property or other things of value paid during a gambling enterprise or activity, the suits summarize. 

The four complaints can be found below. 

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