Apple Sued for Losses to Gambling Apps Connecticut Class Action

The complaint for this class action alleges that Apple, Inc. facilitates the purchase of apps from its App Store “that are no more and no less than casino-style slot machines, casino[-]style table games, and other common gambling games. Because of this, the complaint alleges, Apple is responsible for facilitating illegal gambling for customers in Connecticut and should pay for their losses, as provided for in Connecticut laws.

The class for this action is all Connecticut residents who downloaded, played, and paid money for additional coins in games from the Apple App Store that featured slots, roulette, blackjack, poker, keno, craps, and other kinds of casino-style gambling games, bingo, or simulations thereof, where a player had a chance to win coins or other means to play for additional periods of time, between July 22, 2020 and a date to be set by the court after the class is certified.

Apple maintains tight control of its operating system. Applications made for its iOS are sold exclusively through the Apple App Store, with Apple insisting on reviewing and approving programs sale. Apple takes up to 30% of all money spent on them.

The gambling apps are generally free to download. They offer the user an initial supply of “coins” for playing games. When users lose a game, they lose coins. Users eventually run out of coins, at which point they may buy additional coins for real money.

The plaintiff in this case, Karen Workman, downloaded the game Jackpot Mania from the App Store sometime in 2017. In January of that year, she began buying additional coins so that she could keep playing the game. The complaint alleges, “In the six months prior to the filing of this complaint, she paid $3,312.19 to Apple for the privilege of continuing to play the illegal gambling game(s).”

While users do not win money from the games, they can win more playing time. According to the complaint, “Connecticut’s gambling statutes make it clear that paying money in a game of chance to win more playing time constitutes illegal gambling.” This is because winning more playing time can be construed as winning a “credit” or “thing of value” in the game.

The complaint alleges that Apple is not an incidental participant in the games but “the principal promoter and facilitator of the illegal activity.” For example, Apple requires that app developers use Apple’s payment processing for their iOS apps.

The complaint claims that Apple “has the ability with existing technology it currently uses to prevent the games at issue here from being played in this state.”

According to the complaint, Connecticut’s “strong public policy against gambling includes a statutory right of persons who spend money on gambling to recover their money” within the following three months. The complaint therefore asks that Apple be required to refund plaintiff Workman’s losses of the last three months.

Article Type: Lawsuit
Topic: Consumer
Tags: Entertainment, Gambling Losses, Gambling or Gambling Games