Amazon Being Sued Over Social Betting Apps

This week it was revealed that internet service company Amazon is being sued as part of a class-action suit alleging that the company profited off of "highly addictive" social casino apps that don't allow players the chance to win any real prizes.

The suit alleges that Amazon illegally obtained money, as the company takes 30% of each transaction on its app store. It is estimated that $6 billion was deposited on the social gaming apps in 2020 alone, and the suit alleges that Amazon allowed 34 of these brands to be on their platform. Among these apps were Monopoly Slots, Big Fish Casino, and Quick Hit Slots, among others.

In addition to the return of the funds it raked in from the apps, the lawsuit also wants Amazon to stop offering the apps on its mobile app store.

There is precedent for users suing over social casinos. IGT and its former subsidiary DoubleDown Interactive were sued by users who alleged that both offered social casino games in the state of Washington. The groups agreed to $415 million in settlement payments by the companies after a court ruled that virtual chips could be considered having value.

In the lawsuit lawyers for the Plaintiffs said, "Social casinos are so lucrative because they mix the addictive aspects of traditional slot machines with the power of Amazon to leverage big data and social network pressures to identify, target, and exploit consumers prone to addictive behaviors.

"Simply put, the social casino apps do not, and cannot, operate and profit at such a high level from these illegal games on their own. Their business of targeting, retaining, and collecting losses from addicted gamblers is inextricably entwined with Amazon.

"Not only does Amazon retain full control over allowing social casinos into its store and their distribution and promotion therein, but it also shares directly in a substantial portion of the gamblers' losses, which are collected and controlled by Amazon."

Casino Listings News is following this lawsuit and will be updating readers as the process goes on.