Amazon Settlement Opens Path for Consumers to Seek $200M from Social Casino Developers
Amazon's proposed $201 million settlement allows consumers to seek damages from social casino developers for alleged illegal gambling transactions.Summary
Amazon has reached a proposed class-action settlement in the U.S. District Court for the Western District of Washington that could enable U.S. consumers to pursue over $200 million in damages from third-party social casino app developers. The lawsuit, filed in 2023, alleges that Amazon violated Washington State's gambling and consumer protection laws by processing in-app purchases for casino-style games on its Appstore.
Under the terms of the agreement, Amazon will not pay the class directly; instead, it will consent to a $201 million judgment and assign its legal rights to pursue reimbursement from the responsible developers to the plaintiff class. Amazon will also contribute $2.5 million to cover administrative and notice costs. This arrangement shifts the primary financial obligation to the developers, with the judgment representing approximately 30 percent of the total amount spent on virtual chips by class members during the relevant period.
This settlement occurs as other tech giants, including Apple, Google, and Meta, face similar litigation regarding illegal gambling transactions in social casino apps. While Amazon denies any wrongdoing, the settlement provides a mechanism for consumers to recover funds through the Edelson PC Amazon Social Casino Litigation Trust if approved by the court.
(Source：World Casino News)