In a legal maneuver, Amazon.com (AMZN.O) invokes U.S. law shielding online platforms from third-party content claims, aiming to thwart a consumer lawsuit accusing the tech giant of profiting from illicit casino-style applications. The company, in a recent filing, urges a federal judge in Seattle to suspend the case while an appeals court deliberates on similar lawsuits targeting Alphabet’s Google (GOOGL.O), Apple (AAPL.O), and Meta’s Facebook (META.O).
The 9th U.S. Circuit Court of Appeals in San Francisco is set to delve into casino-app cases come April or May, with a verdict anticipated by year-end, according to attorneys from Perkins Coie, representing Amazon. The potential financial impact looms large, with hundreds of millions of dollars in alleged damages at stake. In 2022, a California federal judge greenlit consumer claims against Google, Apple, and Facebook for their roles in processing payments related to in-app transactions.
At the heart of the matter is the interpretation of Section 230 of the federal Communications Decency Act of 1996, a legal provision offering protections to tech companies hosting user-generated content on their platforms. Amazon remains tight-lipped on the issue, declining to comment immediately.
Edelson, the law firm spearheading the cases against various platforms, including Amazon, remains steadfast in representing a sizable class of consumers. They resist any delay in proceedings, asserting that Amazon, by facilitating “illegal slots,” was effectively “acting as the bank” for these unlawful virtual casinos.
The virtual casino apps in question, which do not offer monetary rewards, allow users to accumulate digital chips with the option to purchase more for extended play. A 2018 9th Circuit ruling had previously declared such casino-style apps in violation of Washington state gambling laws.
While many individual casino games have settled consumer lawsuits independently, the overarching litigation places platforms like Amazon in the crosshairs for allegedly supporting illicit gambling enterprises. The November-filed lawsuit accuses Amazon of entering into a “dangerous partnership” by providing over 30 illegal casino apps, with a Nevada resident leading the charge, claiming addiction to “illegal slots.”
Amazon, in its Thursday filing, argues that advancing the case prematurely would inflict hardship on all parties involved and promises to present additional arguments against the claims in due course. The case, titled Steve Horn v. Amazon.com Inc, is currently in the U.S. District Court for the Western District of Washington (2:23-cv-01727).
