Google Profiting from Allegedly Illegal Gambling Games Class Action

Google, LLC runs the Google Play Store, which sells apps for devices running the Android operating system. This class action concerns gambling game apps developed by Grande Games Limited that are sold there, with the complaint claiming that Google profits from these allegedly illegal games.

Google publishes an Android development kit that can be used to develop games and other apps. Games may be offered for free download or for a cost. Some games, including the gambling games at issue in this case, are free to download, but offer players the option of making in-app purchases at a later date.

When players make a payment, whether for the initial purchase of an app or for a later, in-app purchase, the payment must be processed by Google Payment Corporation (GPC). Google deducts its service fee of 30% of each purchase before sending the remaining 70% on to the developer.

Google helps promote these games, the complaint says: “Google also provides marketing guidance, tools, promotional offers, and more to help drive discovery of Apps and in-app purchases. For example, Google offers App Campaigns to promote Apps through Google Play and ensure that developers’ Apps are shown to consumers who are most likely to drive the Apps’ business by optimizing installations and engagement.”

The complaint charges, “Google permits and facilitates illegal gambling by operating as an unlicensed casino.” It does this, the complaint claims, by offering casino-style gaming apps in the Google Play Store, such as Cash Frenzy and Lotsa Slots.

These games all operate in a similar way. When players first open the app, they have a supply of free “coins” or “chips” they can use to play. When they win, they win more coins or chips. When they lose, they lose coins or chips. Eventually, players run out of coins or chips. At that point they are offered the chance to use real money to buy more.

The complaint states, “Paying money in a game for a chance to win more playing time violates the antigambling laws of the twenty-five states that are at issue in this case.” Those states include 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.

According to the complaint, players in the US lost approximately $3.5 billion playing “free-to-play” apps like the Grande Games casino apps. The complaint asserts, “Google permits and facilitates illegal gambling by operating as an unlicensed casino.

The Multistate Class for this action is all persons who paid money to Google for coins to bet on the Grande Games casino apps who live in the states named above. A class has also been defined for each state.

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