Amazon Calls for Legal Shield in Casino Apps Lawsuit
Amazon.com has strategically invoked a U.S. law to shield itself from liabilities regarding third-party content, countering a consumer lawsuit that alleges Amazon profits from illicit casino-style apps. This move demonstrates the tech giant’s reliance on legal protections to fend off litigation impacting its operations.
Seeking a Halt in Litigation Amid Tech Giants’ Appeals
In a decisive legal filing, Amazon urged a federal judge in Seattle to pause the ongoing consumer lawsuit. This request aligns with pending appeals court decisions on similar lawsuits involving industry peers like Google, Apple, and Meta (Facebook), as reported by Reuters.
Background of the Lawsuit Against Amazon
Filed in November, the lawsuit accuses Amazon of facilitating free-to-play social casino apps, such as Slotomania and Double Down Vegas Slots. These apps, while free initially, offer in-app purchases for gameplay credits, leading to concerns over user addiction and financial loss.
Plaintiff’s Claims and Amazon’s Defense
Nevada resident Steve Horn, the plaintiff, claimed an addiction to social gaming apps, citing numerous transactions through games from the Amazon Apps & Games Store. Amazon, defending its position, cites Section 230 of the Communication Decency Act (CDA) of 1996, asserting immunity from legal claims over third-party content.
Awaiting Key Appellate Court Decisions
The 9th U.S. Circuit Court of Appeals in San Francisco is expected to review these casino-app cases, with a decision likely by the year’s end. Amazon’s legal team from Perkins Coie highlighted the potential impact of this appellate decision on the current lawsuit.
Potential Impact on Tech Industry Protections
This litigation, involving substantial damages, could set new precedents on the scope of Section 230 CDA protections for tech companies hosting user-generated content. The outcome may redefine the legal landscape for internet platforms and their responsibilities.
Developments in Similar Consumer Claims
In 2022, a California federal judge permitted consumers to pursue claims against Google, Apple, and Facebook regarding in-app transactions. Edelson, the law firm spearheading these cases, has yet to respond to Amazon’s request for a case hold.
The Controversy Surrounding Virtual Casino Apps
Virtual casino apps, often criticized for enabling unlawful gambling, offer gameplay without cash prizes but allow for digital chip purchases. A 2018 9th Circuit ruling found such apps in violation of Washington state gambling laws, adding to the controversy.
Amazon’s Stance on Staying the Case
Amazon’s recent filing argues for delaying the case, citing potential hardships and inefficiencies for all parties. The company indicates its readiness to present additional arguments against the claims later, pending the appellate court’s guidance.
The Ongoing Battle Against Illicit Gambling Claims
Several casino games have resolved consumer lawsuits, but platforms like Amazon continue to face accusations of facilitating illegal gambling enterprises. The lawsuit against Amazon specifically targets its role in offering over 30 casino apps in a purportedly harmful partnership with virtual casinos.