Apple, Google, and Meta must defend themselves in court after a judge refused to dismiss a class-action lawsuit accusing the companies of promoting illegal gambling apps. The ruling, handed down by Judge Edward J. Davila, keeps alive claims that the firms processed payments for social casino apps in ways that harmed users .
The Core of the Case
Plaintiffs argue that by handling transactions for casino-style apps, the tech giants acted like unlicensed bookies. Judge Davila clarified that the central issue is not whether they operated as “bookies or brokers” but whether they improperly managed payments. Users in earlier cases alleged significant financial losses, depression, and even suicidal thoughts tied to these apps .
Section 230 Debate
The companies leaned on Section 230 of the Communications Decency Act, which shields platforms from liability for third-party content. They argued this protection should cover them against the lawsuits. However, the judge dismissed that reasoning, at least in part, allowing the case to move forward. He did, however, permit the firms to appeal the decision to the 9th U.S. Circuit Court of Appeals.
What Happens Next
The legal battle is far from over. The appellate court has previously dismissed similar appeals, saying the cases were too broad. In 2020, the U.S. Supreme Court also avoided ruling on the scope of Section 230. For now, Apple, Google, and Meta will continue to face scrutiny over how their platforms manage gambling-style apps and user payments.
Broader Implications
This case could influence the future of online platform liability. If the courts rule against the companies, it may open the door for more lawsuits targeting app store practices and revenue-sharing models. It also adds to the ongoing debate in Washington about whether Section 230 protections should be limited or redefined for modern digital platforms.
