Amazon has reached a proposed settlement in a U.S. class action lawsuit that could enable consumers to seek more than $200 million from developers behind social casino apps sold through the company’s Appstore, without requiring Amazon itself to pay compensation.
The agreement, submitted Thursday in federal court in Seattle, still requires judicial approval. It aims to resolve claims brought in 2023 accusing Amazon of violating Washington state’s gambling laws and consumer protection rules by facilitating transactions for social casino applications available on its digital marketplace.
Rather than establishing a payout fund, the settlement takes an unusual route. Under its terms, Amazon would consent to a $201 million judgment, but consumers would not collect that amount from the company. Instead, Amazon would transfer its legal rights to pursue reimbursement from the third-party developers that created the casino-style apps. Any money recovered from those developers would then be distributed among eligible class members.
Amazon emphasized that the agreement is not an admission of liability. The company said the settlement allows it to continue operating its Appstore while requiring developers to adopt measures designed to improve the customer experience. It also reiterated that apps offered through the marketplace must comply with applicable laws and that it retains the authority to remove applications whenever necessary.
The lawsuit centers on social casino apps, which simulate casino-style games and often allow users to purchase virtual chips or credits through in-app transactions. The plaintiff argued that Amazon played a role in processing those purchases, making it liable under Washington law.
Attorneys representing the consumers described the proposed settlement as another milestone in a broader legal effort targeting the social casino industry. According to court filings, previous settlements with app developers have already returned more than $650 million to consumers in Washington and elsewhere across the United States.
They also stated that the $201 million judgment represents roughly 30% of the total amount spent by class members on the apps. That figure was calculated using Amazon’s transaction records produced during the litigation, which documented in-app purchases made by users covered by the lawsuit.
If money is ultimately recovered from the developers, it will be distributed to eligible consumers under the terms of the settlement.
The legal battle is not limited to Amazon. Similar lawsuits involving Apple, Google, and Meta remain pending, with each company rejecting allegations of wrongdoing.
The case is Steven Horn v. Amazon.com Inc., before the U.S. District Court for the Western District of Washington.
