What responsibility do sellers like Apple’s App Store have for the games they offer? This class action alleges that Apple, Inc. bears responsibility for selling gambling games created by Zynga, Inc., such as casino-style slot machines and table games that it claims are illegal under state gambling laws.
Apple permits developers to create with Apple’s iOS Software Development Kit. Players can download the Zynga games for free, but they may then make purchases while playing.
These in-app purchases must be processed by Apple. Apple takes a commission of up to 30% of sales of apps in its App Store and then from in-app purchases in those games. The complaint says, “Apple characterizes the commission as a fee for distribution of the App and the cost of running the App Store.”
The complaint thus alleges, “Apple permits and facilitates illegal gambling by operating as an unlicensed casino.”
Zynga apps offered in the Apple Store include YüzBir Okey Plus, Bid Whist Plus, Black Diamond Casino Slots, Game of Thrones Slots Casino, Gin Rummy Plus, Hit it Rich! Slots, Okey Plus, Solitaire, Spades Plus, Willy Wonka Slots, Wizard of Oz Slots, Zero21 Solitaire, and Zynga Poker.
Players begin with an allowance of “coins” or “chips” to play with. If they win, they earn more coins or chips; if they lose, they eventually use up their supply of coins or chips. However, they may obtain more by making in-app purchases with real money.
According to the complaint, “In 2019, people in the US lost approximately $3.5 billion playing ‘free-to-play’ Apps like the Zynga Casino Apps.” It further claims, “Most of the revenue earned from these casino-style Apps (i.e., 80-90%) is made from a small portion (i.e., about 3%) of their players, who are specifically targeted because of the large amounts they will spend.”
The complaint quotes from a journalist with Reveal from the Center for Investigative Reporting, who wrote about a woman who wanted to spend $400,000, even though she did not have that much money. He said, “In a regular casino, they would have seen that she didn’t have the income to be spending $400k. Further, she asked them nearly a dozen times to cut her off, told them she had a problem… They just gave her free chips and encouraged her to keep spending.”
The complaint alleges, “Paying money in a game of chance to win more playing time violates the antigambling laws of the twenty-five state that are at issue in this case.”
The Multistate Class for this action is all persons who paid money to Apple for coins to wager on the Zynga Casino Apps and who live in Alabama, Arkansas, Connecticut, Georgia, Illinois, Indiana, Kansas, Massachusetts, Minnesota, Mississippi, Missouri, Montana, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oregon, South Carolina, South Dakota, Tennessee, Vermont, Virginia, Washington, and West Virginia. The complaint also proposes a class for each of these states.
Article Type: LawsuitTopic: Consumer
Most Recent Case Event
Apple Alleged to Break Gambling Laws with Zynga Apps Complaint
February 16, 2021
What responsibility do sellers like Apple’s App Store have for the games they offer? This class action alleges that Apple, Inc. bears responsibility for selling gambling games created by Zynga, Inc., such as casino-style slot machines and table games that it claims are illegal under state gambling laws.
Apple Alleged to Break Gambling Laws with Zynga Apps ComplaintCase Event History
Apple Alleged to Break Gambling Laws with Zynga Apps Complaint
February 16, 2021
What responsibility do sellers like Apple’s App Store have for the games they offer? This class action alleges that Apple, Inc. bears responsibility for selling gambling games created by Zynga, Inc., such as casino-style slot machines and table games that it claims are illegal under state gambling laws.
Apple Alleged to Break Gambling Laws with Zynga Apps Complaint