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      News

      Amazon Faces 2026 Trial In Groundbreaking Social Casino Lawsuit

      The suit alleges that Amazon willingly supports illegal gambling through the apps

      erik gibbs

      By Erik Gibbs

      Last updated: November 1, 2024

      2 min

      amazon office

      A lawsuit against Amazon alleging the tech giant’s involvement in promoting social casino apps is set to proceed after being filed nearly a year ago by Nevada resident Steven Horn.

      The case is one of the first significant legal challenges targeting a major tech company over its role in the booming social casino industry. It accuses Amazon of fostering a “dangerous partnership” with social casino developers and profiting from users’ in-app spending on virtual gambling platforms.

      The lawsuit claims Amazon has violated Washington state gambling laws by distributing and financially benefiting from casino-style gaming apps marketed as free-to-play but encouraging users to purchase virtual chips to continue playing.

      The trial date for the lawsuit has been set for Oct. 5, 2026 — nearly two years away. Key dates in the case have been established, with initial discovery beginning this week.

      The deadline for Amazon to respond to the complaint is set for Dec. 4, while both parties can introduce expert testimony up until late 2026. The discovery phase, when both sides will collect data and interrogate documents, is set to conclude by Sept. 30, 2026, just days before the trial is scheduled to begin.

      The lawsuit centers on the allegation that Amazon has exploited social casino games — apps designed to resemble traditional casino games like poker and online slots, but which offer virtual currency rather than real cash prizes — as an illegal online gambling enterprise. While social casinos don’t award monetary prizes, users frequently purchase virtual chips to continue playing, which, according to Horn and his legal team, constitutes gambling.

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      Banking on Washington law

      Horn’s case relies heavily on a 2018 U.S. appeals court ruling that determined social casino games could be considered illegal under Washington state law. It views any game involving wagering for a chance to win as gambling, regardless of whether actual currency is involved.

      Horn, who said he became addicted to online slot games, claims that Amazon has benefited from the rising popularity of social casino apps, earning substantial revenue through its distribution of these apps on its platform. The lawsuit alleges Amazon maintains a 30% cut of the revenue generated from in-app purchases in these games.

      The case argues that Amazon is not simply a distributor but has an active role in promoting social casino games to users, driving them to make purchases and facilitating the payment process. This, the lawsuit claims, places Amazon in a position where it acts as both promoter and bank, collecting revenue from each transaction made within the apps.

      The lawsuit further contends that Amazon’s partnership with social casino developers exacerbates gambling addiction by providing technical support to operators who update games with new content aimed at retaining players. These updates, the complaint states, often include targeted promotions, designed specifically to encourage continued spending among users already hooked on the games.

      Suit alleges active participation by Amazon

      Horn’s legal team asserts that the tech giant’s role in delivering app updates and enhancements designed to boost engagement and spending constitutes direct involvement in a gambling ecosystem that leaves players, particularly those vulnerable to addiction, at increased financial risk. They argue that some players are driven to extreme measures, including using credit or taking on debt, to fund their virtual gaming habits.

      Amazon says federal law bars consumers’ ‘social casino’ lawsuit https://t.co/WsXmWDlgbU pic.twitter.com/zBZH8mjWDp

      — Reuters (@Reuters) January 5, 2024

      Horn’s lawsuit is part of a broader movement by social casino users seeking legal redress from companies they allege are capitalizing on addictive gameplay mechanics. Similar cases have been filed in multiple states, with plaintiffs arguing that social casino games exploit psychological triggers associated with traditional gambling, leading to harmful spending patterns.

      Amazon has yet to comment on the latest activity of the lawsuit. The tech giant, however, has previously maintained that it operates as a neutral platform for app developers, allowing companies to reach users without directly involving itself in app content or transactions. It has also claimed that federal law prohibits similar lawsuits, although that hasn’t stopped this suit from moving forward.

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