Amazon’s legal gambit in ’slots in the home’ lawsuit

Shirley Pulis Xerxen January 8, 2024

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Amazon’s legal gambit in ’slots in the home’ lawsuit

Amazon is seeking protection under a U.S. law that shields internet platforms from claims regarding third-party content on their websites. In their legal gambit, they want a federal judge in Seattle to pause the consumer lawsuit against them until an appeals court decides whether similar lawsuits can proceed against Google, Apple, and Facebook. The 9th U.S. Circuit Court of Appeals is expected to rule on the casino-app cases later this year.

Setting a precedent

The potential damages in the cases could amount to hundreds of millions of dollars or more. In 2022, a California federal judge ruled that consumers could pursue claims against Google, Apple, and Facebook for their involvement in processing payments for in-app transactions. This litigation carries the possibility of setting a new precedent for the scope of Section 230 of the federal Communications Decency Act, which grants certain protections to tech companies that host user-generated content.

Additionally, a 9th Circuit ruling from 2018 declared that casino-style apps violate a gambling law in Washington state. Previous consumer lawsuits against the casino games themselves have been settled, leaving the platforms to defend against allegations of facilitating illegal gambling enterprises.

Legal gambit

The law firm Edelson is leading the cases against Amazon and other platforms, and they opposed putting the case on hold, as requested by Amazon. The virtual casino apps mentioned in the lawsuit are free to play and do not offer cash prizes. Instead, users can win digital chips and purchase more to continue playing.

The lawsuit filed in November 2023 against Amazon accuses the company of distributing games from over 30 virtual casinos and placing its customers in danger. The lawsuit claims that Amazon acted as a bank for these illegal social casino apps, knowingly engaging in such activities. Amazon is also accused of misleading players by promoting free-to-play games in order to “smuggle slot machines into the homes of consumers throughout the United States, 24 hours a day, seven days a week, and 365 days a year.”

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