Lawsuit claims Apple facilitates, benefits from illegal gambling on the App Store
Apple has been hit with a lawsuit claiming that it hosts, facilities, and benefits from an illegal gambling enterprise on the App Store.
Credit: Apple
The complaint, lodged in the U.S. District Court for the Northern District of California, takes aim at free-to-play social casino apps that allow users to buy in-game currency with real money.
Like real slot machines and casinos, the lawsuit alleges that social casino apps are "extraordinarily profitable and high addictive." Unlike real casinos, however, it also notes that users cannot cash out chips for real money.
While the lawsuit focuses on casino apps, it targets Apple specifically for hosting the apps -- and for taking a 30% cut of in-app purchases.
"By utilizing Apple for distribution and payment processing, the social casinos entered into a mutually beneficial business partnership," the complaint says.
It goes on to claim that Apple's App Store helps distribution of the games, provides the app developers with data and insights on users, and enables processing of in-app payments. Apple, for its part, takes a cut that the plaintiffs allege is much higher than the "house" at normal casinos.
"The result (and intent) of this dangerous partnership is that consumers become addicted to social casino apps, maxing out their credit cards with purchases amounting to tens or even hundreds of thousands of dollars," the lawsuit says.
It adds that consumers spent $6 billion on virtual casino chips in 2020.
The lawsuit claims that Apple is in violation of California law, which bans slot machines. It also accuses Apple of racketeering and collection of unlawful debts.
The complaint names plaintiffs Donald Nelson and Cheree Bibbs, both of whom are social casino users who have spent "at least $15,000 each" in virtual casino currency. The lawsuit seeks class status.
Along with an order declaring Apple's alleged behavior unlawful, the lawsuit also seeks damages in the amount of the losses suffered and "disgorgement of all of Apple's ill-gotten gains," among other forms of relief.
Credit: Apple
The complaint, lodged in the U.S. District Court for the Northern District of California, takes aim at free-to-play social casino apps that allow users to buy in-game currency with real money.
Like real slot machines and casinos, the lawsuit alleges that social casino apps are "extraordinarily profitable and high addictive." Unlike real casinos, however, it also notes that users cannot cash out chips for real money.
While the lawsuit focuses on casino apps, it targets Apple specifically for hosting the apps -- and for taking a 30% cut of in-app purchases.
"By utilizing Apple for distribution and payment processing, the social casinos entered into a mutually beneficial business partnership," the complaint says.
It goes on to claim that Apple's App Store helps distribution of the games, provides the app developers with data and insights on users, and enables processing of in-app payments. Apple, for its part, takes a cut that the plaintiffs allege is much higher than the "house" at normal casinos.
"The result (and intent) of this dangerous partnership is that consumers become addicted to social casino apps, maxing out their credit cards with purchases amounting to tens or even hundreds of thousands of dollars," the lawsuit says.
It adds that consumers spent $6 billion on virtual casino chips in 2020.
The lawsuit claims that Apple is in violation of California law, which bans slot machines. It also accuses Apple of racketeering and collection of unlawful debts.
The complaint names plaintiffs Donald Nelson and Cheree Bibbs, both of whom are social casino users who have spent "at least $15,000 each" in virtual casino currency. The lawsuit seeks class status.
Along with an order declaring Apple's alleged behavior unlawful, the lawsuit also seeks damages in the amount of the losses suffered and "disgorgement of all of Apple's ill-gotten gains," among other forms of relief.
Comments
You could (and some people have about games by EA and others with loot boxes) say exactly the same thing about freemium games of all types.
On the other hand, Gambling assumes there is a chance of getting money or some other price in return. You explicitly can't do that here "Unlike real casinos, however, it also notes that users cannot cash out chips for real money." The definition for "Slot Machine" also implies some sort of material reward.
I suspect it will get thrown out.
Apple didn't have to create any of these restrictions on gambling apps. And Apple could add more rules making them more restrictive. It's Apple's store, and they can sell whatever they want. This is not a store controlled by the public or by the government.
I would be in more in favour of adding more restrictions for gambling apps rather than removing some.
However I think the restriction on card counting apps should be removed. The reason given below is that card counters are "illegal." I don't live in the US, but I googled whether card counting is illegal, and the answer was no. https://en.wikipedia.org/wiki/Card_counting#Legal_status Wikipedia documents no country in the world where card counting is "illegal." So the Apple rules are wrong when they claim that card counting apps are "illegal gambling aids".
I find it interesting that Apple won't sell apps that help you defeat the casinos (card counting apps) but they will sell apps that let you defeat the police (police location apps). Apple supports "casinos over people" but not the "police over people."
The difference is that "defeat the police" is a collection of meaningless words that you made up to substantiate your nonsensical argument. You haven't offered anything that is illegal that Apple allows on the App Store, only your personal opinion that things that help "defeat the police" shouldn't be allowed.
Gambling on the other hand is a concrete thing, and is defined as wagering money on the outcome of a game, which is (a) illegal or regulated in all states, and (b) an objective standard that can be applied to determine whether somethign is or isn't "gambling."
Second, card counting with the aid of anything but your own brain is in fact illegal in every state with legalized gambling. See, e.g., Nevada Revised Statues 465.075:
It is unlawful for any person to use, possess with the intent to use or assist another person in using or possessing with the intent to use any computerized, electronic, electrical or mechanical device, or any software or hardware, or any combination thereof, which is designed, constructed, altered or programmed to obtain an advantage at playing any game in a licensed gaming establishment or any game that is offered by a licensee or affiliate, including, without limitation, a device that . . . Keeps track of cards played or cards prepared for play in the game . . .
"Card counting is NOT illegal under federal, state and local laws in the United States as long as players don't use any external card-counting device or people who assist them in counting cards."
It is illegal if you use a device to do it and even if it is legal a casino can ban you if they determine you are doing it. Device to no device Is not relevant other than a device makes it a crime rather than just a violation of the casino's rules. In your head doesn't matter and they are not required to prove anything to anyone.. If they say that's what you are doing then that's what you are doing.
Is it right to ban someone who isn't cheating and just has superior skill that flips the odds? Not really, but too bad. That's the way it is. Don't go to casinos or gamble in apps if you don't like it.
Bunch of damn Apple apologists.
I am generally an anti google person due to their gross behaviour toward and profiteering from violence, scams, hate, child targeting, predatory behaviour, destruction of value and being the biggest spammer on earth
However the gambling simulators on the various app stores are horrendous and predatory; worse in my opinion is that any game that is free and stuffed with ads, will include ads promoting these kinds of apps directly to small kids.
Google turns a blind eye and i expect that of them, however Apple turning a blind eye is real and equally -insert appropriate swear word-
There is no apology, this is not a spurious law suit, it is Apple profiteering and the no doubt very hypocritical comments saying “control yourself” sadly highlight the quality and compassion of the commenters.
Here is an analogy which I find makes the weakness of your position clear: suppose there were some people who could not stop eating potato chips, and it was making them fat and ruining their health. Would the appropriate solution be to sue the supermarket? Oh no, they were benefiting from these people’s compulsion to buy junk food!! How can the supermarket simply expect people to “control themselves”?
As far as your other point, that I didn't "offer anything that is illegal" regarding police tracking apps. An app doesn't have to be illegal for Apple to ban it. For example Apple bans apps that encourage the sale of tobacco. Tobacco isn't illegal in the US. So on this point, you are wrong. If I feel that Apple should ban apps that track police locations, that is a valid opinion and nothing you say can make that opinion wrong. Unless you think all the bans in the Apple App Store Guidelines are wrong, do you?
Opinions based on falsities, nonsense reasoning, or just unsubstantiated flights of fancy can certainly be wrong. That a gross way to argue, putting nonsense in other people's mouth and then challenging them to defend it. Stop it. Stop all of this.