By Manisha Sahu, America News World
October 1, 2025
Tech giants Apple, Google, and Meta Platforms are set to face a wave of lawsuits alleging that their platforms profited from promoting and facilitating casino-style gambling apps. A federal judge has denied the companies’ attempts to dismiss the cases, marking a significant setback for the Silicon Valley powerhouses.
The lawsuits, which have been ongoing since 2021, accuse Apple’s App Store, Google’s Play Store, and Meta’s Facebook of hosting, promoting, and profiting from apps that simulate Las Vegas-style slot machine gambling. Plaintiffs argue that these companies orchestrated an illegal racketeering conspiracy by providing a marketplace for addictive apps, collecting commissions, and enabling gambling-like transactions that have left some users struggling with financial ruin, depression, and even suicidal thoughts.
Judge Rejects Section 230 Shield
U.S. District Judge Edward Davila, based in San Jose, California, issued a 37-page ruling on Tuesday. In his decision, he rejected the companies’ primary defense that they were shielded from liability under Section 230 of the Communications Decency Act (CDA). Section 230 has long provided internet platforms immunity from lawsuits tied to third-party content hosted on their services.
However, Davila emphasized that this case was different. “The crux of plaintiffs’ theory is that defendants improperly processed payments for social casino apps,” Davila wrote. He noted that Apple, Google, and Meta acted not as publishers but as active participants in the payment processing system. This, he said, undermined their claim to Section 230 immunity.
Davila added that it was irrelevant whether the companies provided “neutral tools” for app developers, or whether plaintiffs had specifically labeled them “bookies.” What mattered, the judge said, was that these companies processed transactions and earned substantial revenue through commissions.
Billions in Alleged Profits
According to court filings, the plaintiffs claim the three companies collected an estimated $2 billion in commissions, taking a 30% cut from user transactions within these gambling-style apps. These apps offered virtual slot machines and casino games, giving users an “authentic Vegas-style experience” without requiring a trip to Nevada.
But plaintiffs argue the consequences for users were anything but virtual. They allege that many players became addicted to these apps, leading to devastating personal consequences, including financial losses, depression, and even suicidal thoughts. The lawsuits seek unspecified compensatory and triple damages under federal racketeering and consumer protection laws.
Mixed Outcome, But Major Claims Move Forward
While Davila did dismiss some claims tied to violations of specific state laws, he allowed the majority of consumer protection claims to proceed—except those brought under California’s own consumer laws. The ruling means the lawsuits will move forward toward trial unless the appeals court intervenes.
Apple, Google, and Meta did not immediately respond to requests for comment. Google’s parent company Alphabet stated it had “no immediate comment,” while lawyers representing the plaintiffs also declined to provide a public statement following the ruling.
Immediate Appeal Allowed
Recognizing the high stakes of the case, Judge Davila said the defendants could pursue an immediate appeal to the 9th U.S. Circuit Court of Appeals, particularly on the Section 230 issue. In May 2024, the 9th Circuit had dismissed earlier appeals from the companies, ruling that it lacked jurisdiction at that stage of the litigation.
By granting leave for immediate appeal this time, Davila acknowledged the broader implications of the case. The interpretation of Section 230 has been central to numerous disputes involving tech companies, and a ruling from the 9th Circuit could reshape how much legal protection major platforms enjoy in connection with apps and digital transactions.
Broader Legal and Industry Implications
The lawsuits—consolidated as multidistrict litigation in the Northern District of California—highlight growing scrutiny of the role Big Tech plays in online gambling and addictive digital platforms. While the companies argue they are simply providing digital marketplaces and advertising platforms, plaintiffs contend that they are far more involved, acting as brokers who facilitate and profit directly from gambling-like behavior.
Legal experts suggest this case could have far-reaching consequences. If courts continue to erode Section 230 protections in cases involving financial transactions, tech companies could face heightened exposure to lawsuits tied to everything from gambling and gaming apps to digital marketplaces.
“This is not just about slot machine apps,” one legal analyst noted. “It’s about whether Big Tech can profit from addictive or harmful services and then hide behind Section 230 when people are harmed.”
Next Steps
The cases moving forward include:
– In re Apple Inc App Store Simulated Casino-Style Games Litigation, No. 21-md-02985
– In re Google Play Store Simulated Casino-Style Games Litigation, No. 21-md-03001
– In re Facebook Simulated Casino-Style Games Litigation, No. 21-02777
The lawsuits represent dozens of plaintiffs but could expand into class-action claims covering potentially millions of users across the United States.
As Apple, Google, and Meta prepare for the next phase of litigation, the outcome could reshape not only their legal liability but also the future of digital marketplaces and the regulation of gambling-style apps in America.