With the recent U.S court rulings, Apple, Google, and Meta have been ordered to face lawsuits alleging that their platforms facilitate illegal gambling through casino-style apps. These cases are unfolding across multiple federal courts and have been the talk that’s taking over headlines. They have major implications for app store policies, platform liability, and the expanding world of social casino games.
A Wave of Lawsuits Against Technology
Legal challenges from class-action lawsuits filed over the last few years have been led by plaintiffs who lost huge amounts of money through casino-style apps. This includes virtual slot machines, blackjack, and bingo. These apps allow users to play online for “free” but sell virtual chips or coins, which are required to continue playing once a player’s free balance runs out.
U.S District Court ruling declines to dismiss several of these lawsuits on 30 September 2025. This means that Apple, Google, and Meta now face claims that they knowingly profited from illegal gambling activities. Lawsuits argue this matter because these companies have taken a 30% commission on in-app purchases and control the distribution of these games.
What Are Casino-Style Apps?
Casino-style apps are known to mimic the look and feel of real online casinos. They come with a wide range of features such as:
- Slot reels
- Jackpot animations
- Leaderboards
- Tournaments
- Live dealer games
- Live chat communities
Casino-style apps are widely available in the App Store and Google Play, and many are promoted on Meta platforms such as Facebook and Instagram. The main concern about these apps revolves around whether they constitute “illegal gambling” under state law.
Most of them do not pay out cash directly to players, but users can purchase virtual currency and use it to play, then redeem winnings indirectly, such as through sweepstakes models
The Platforms’ Defense
Platforms like Apple, Google, and Meta have fought and said that they are not gambling operators but merely provide neutral platforms where independent developers can distribute their apps. They have pointed to Section 230 of the Communications Decency Act, which traditionally shields platforms from liability for content created by third parties.
On the other hand, plaintiffs argue that they have gone beyond passive hosting. This means that by curating, ranking, promoting, and monetizing the apps, plus collecting a commission on every in-app purchase, they are materially benefiting and contributing to the gambling sector.
Why Do These Lawsuits Matter?
The outcome of these lawsuits could reshape how casino-style apps are distributed in the U.S. If courts rule in favor of the plaintiffs, Apple, Google, and Meta may be forced to do the following:
- Change their app store policies.
- Introduce age verification or geo-fencing.
- Refund users or pay damages.
- Face regulatory oversight.
- Set legal precedents for platform liability.
- Affect other app categories.
By doing this, it would mark a significant shift for the booming social casino industry, which generated a total of over $7 billion in global revenue for the year 2024, according to industry estimates. Overall, the U.S. remains one of the largest markets, with tens of millions of players engaging in these apps every month.
Industry Repercussions
Casino-style app developers have stricter rules to follow, which means there are tougher distribution channels and possible revenue declines. Most of these apps rely on frictionless app store placements and targeted Meta ads to reach target audiences. For consumers, the lawsuits can lead to clear disclosures, stronger player protections, or age-gating mechanisms.
If courts determine that platforms can be held liable for monetizing allegedly illegal activity by third-party apps, the decision could ripple across sectors like fintech, health, or AI-driven marketplaces.
Broader Regulatory Context
These lawsuits also say there is an increasing federal and state scrutiny of Big Tech’s role in gambling. Many U.S. states, like Connecticut, Delaware, and Michigan, have issued warnings or cease-and-desist orders to sweepstakes and social casinos operating in legal grey zones. Regulators have their eyes watching how virtual currencies are marketed. This is because some apps target vulnerable groups with aggressive push notifications and bonus offers.
Congress has not yet passed specific federal legislation targeting social casinos, but the mounting legal pressure could provide new rules or push the companies to adopt voluntary compliance frameworks.
What Does The Future Hold?
Although the cases are still in early stages, there have been motions to dismiss, but they have been denied. Potential trials could still uncover how much these companies knew about the gambling mechanics of the apps they hosted. Settlements are possible in the future as similar cases from previous years have led to multi-million-dollar payouts from smaller developers.
As of today, Apple, Google, and Meta face an uncomfortable reality. Their app store ecosystems are under legal scrutiny like never before. With billions of dollars at stake, the outcome will shape the future of social casino gaming as well as the responsibilities of fintech platforms across the U.S. legal landscape.
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