Apple has been hit by a lawsuit alleging that it hosts, facilitates and benefits from an illegal gambling enterprise on the App Store.
The lawsuit, filed with the United States District Court for the Northern District of California, targets free-to-play social casino apps that allow users to purchase in-game currency for real money.
Like real slot machines and casinos, the lawsuit claims that social casino apps are “extraordinarily profitable and addictive.” Unlike real casinos, however, it also notes that users cannot withdraw real money chips.
While the lawsuit focuses on casino apps, it is targeting Apple specifically for hosting the apps and cutting in-app purchases by 30%.
“By using Apple for distribution and payment processing, social casinos have entered into a mutually beneficial business partnership,” the complaint says.
He goes on to say that Apple’s App Store aids in game distribution, provides app developers with user data and insights, and enables in-app payment processing. Apple, for its part, takes a cut that the plaintiffs claim is much higher than the “house” of regular casinos.
“The result (and intent) of this dangerous partnership is that consumers become addicted to social casino apps, maximizing their credit cards with purchases that add up to tens or even hundreds of thousands of dollars,” the lawsuit claims.
He adds that consumers spent $ 6 billion on virtual casino chips in 2020.
The lawsuit claims Apple violates California law, which bans slot machines. It also accuses Apple of racketeering and illegal debt collection.
The lawsuit names plaintiffs Donald Nelson and Cheree Bibbs, both social casino users who spent “at least $ 15,000 each” in the virtual casino’s currency. The cause seeks class status.
Along with an order declaring Apple’s alleged conduct illegal, the lawsuit also seeks damages in the amount of losses suffered and the “removal of all of Apple’s ill-gotten gains,” among other forms of relief.
- According to this source The lawsuit claims that Apple facilitates and benefits from illegal gambling on the App Store
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