A lawsuit charges Apple Inc. with running an illegal gambling enterprise though the availability of social casino apps on the company’s App Store.
The complaint, filed in the U.S. District Court for the Northern District of California, claims the ability for users of the social casinos to purchase in-game currency with real money constitutes illegal gambling. The plaintiffs also claim social casino apps are “extraordinarily profitable and high addictive.”
While the lawsuit focuses on casino apps, it targets Apple specifically for hosting the apps and for taking a 30 percent cut of in-app purchases—which the plaintiffs complain is much higher than any cut taken by a traditional casino.
“By utilizing Apple for distribution and payment processing, the social casinos entered into a mutually beneficial business partnership,” the complaint says.
“The result (and intent) of this dangerous partnership is that consumers become addicted to social casino apps, maxing out their credit cards with purchases amounting to tens or even hundreds of thousands of dollars.”
The lawsuit claims that Apple is in violation of the California law that bans slot machines outside of Native American casinos, and also accuses Apple of racketeering and collection of unlawful debts.
Plaintiffs Donald Nelson and Cheree Bibbs are social gamers who have spent “at least $15,000 each” in virtual casino currency, the lawsuit claims. The complaint asks for damages in the amount of the losses suffered, an order declaring Apple’s alleged behavior unlawful, and “disgorgement of all of Apple’s ill-gotten gains.”
