Amazon is resolving a lengthy legal dispute over the distribution of virtual casino chips that could allow members of a class-action lawsuit to receive more than $200m.
According to court documents filed with the U.S. District Court for the Western District of Washington, Amazon filed a motion for preliminary approval to settle the suit that was initially filed in November 2023 by Nevada resident Steven Horn.
Horn accused Amazon of violating the Consumer Protection Act and Washington gambling law by “brokering illegal gambling transactions on social casino apps available through the Amazon Appstore.” The suit takes issue with Amazon being the “exclusive payment processor for in-app purchases of virtual casino chips in those apps.” It also concerns developers and acknowledges Amazon taking a 30% cut of each transaction.
Amazon immediately disputed the allegations made by Horn, but is now settling the matter.
What an approved settlement for Amazon could look like
The proposed settlement would allow class members of the lawsuit to pursue $201m in damages, but with a caveat that places a burden on 32 gaming developers.
If a District Court judge approves the proposed settlement, class members in the suit agree not to execute the judgment against Amazon. Rather, the settlement agreement establishes a litigation trust with the class members as the sole beneficiaries.
The trust allows class members to pursue reimbursement from developers through “Amazon’s contractual indemnification rights” against the developers of those apps.
- The settlement figure represents 30% of every dollar class members spent with social casino apps during the relevant period.
- Amazon’s agreement requires the company to “contribute $2.5 million to cover the up-front costs of class notice and other settlement administration.”
- The litigation trust would be coined as the Edelson PC Amazon Social Casino Litigation Trust.
“Under this framework, the class stands to recover from the developers themselves a significant percentage of the class’s damages in an amount that falls directly in line with the prior developer settlements,” reads the unopposed motion for preliminary approval.
Amazon’s agreement to settle the lawsuit resolves all claims made against the company.
Google & Apple facing RICO charges over online casinos
In addition to Amazon, Apple, Meta, and Google are also facing suits tied to social casinos.
In 2024, a New Jersey resident filed a class-action lawsuit against Apple, Google, and a group of sweepstakes casino operators. Apple and Google are included in the suit for enabling and facilitating the operation of sweepstakes casino sites. The tech giants are facing Racketeer Influenced and Corrupt Organizations Act (RICO) charges.
Apple and Google are also featured in class-actions that include Meta.
Last September, U.S. District Court Judge Edward Davila in California denied requests filed by Apple, Google and Meta to dismiss class-action lawsuits accusing the companies of profiting from social casino platforms that expose residents to gambling addiction.
