Apple facing new “unlicensed casino” lawsuit over US App Store purchases
Tech giant comes under fire for allegedly breaking gambling laws in 25 states as social casino developers weigh in on issue
Apple has been hit with another class action lawsuit in the US that claims the tech giant profits from illegal gambling apps via its App Store.
The complaint, which has been lodged in California by plaintiffs Joshua McDonald and Michael Helsel, is seeking statuary damages and costs, as well as the implementation of an injunction against Apple prohibiting the company from taking part in further alleged illegal activity.
The lawsuit claims Apple operates as an “unlicensed casino” by facilitating illegal gambling via its App Store, breaking regulations in at least 25 states.
The plaintiffs specifically take issue with free-to-play social casino games with which in-game chips and credits can be purchased with real money yet have no redeemable value and can’t be withdrawn.
The lawsuit reads: “Paying money in a game for a chance to win more playing time violates the anti-gambling laws of [at least 25 states].”
“Apple actively enables, permits, promotes, and profits from illegal gambling,” the complaint continued.
Both McDonald and Helsel have made in-game purchases, with the latter making at least five separate purchases at a minimum of $107.99 each.
The lawsuit specifically names casino apps developed by Korean firm DoubleU Games.
In a statement, DoubleU Games said: “First of all, it is clear that this lawsuit is not a lawsuit filed against DoubleU Games.
“Social casinos have not been specified as illegal gambling in any US state statutes so far, and the plaintiff of the lawsuit is based on a broad interpretation of the laws on virtual coins, social casino purchase chips, etc.
“The impact on the corporate value of our company and its rivals SciPlay and Playtika in the US due to lawsuits filed against platform operators is considered limited,” the statement concluded.
In February, Apple was hit with a $5m (£3.6m) class action lawsuit for allegedly profiting from casino-style games advertised on its App Store, including a Game of Thrones slot developed by Zynga.
Eilers & Krejcik Gaming forecasts that the social casino segment, including slots, table games, bingo and poker, will be worth $7.6bn by the end of 2023, up from $6.19bn in the trailing 12 months to June 2020.