Lawsuit filed against Apple for slot machine apps.
Apple Inc., an American multinational technology company, is slammed with a class action lawsuit in California due to its distribution of gambling apps on the iPhones. The lawsuit alleges that the smartphone producer is making a fortune from illegal gambling. These claims have been surfacing for a while, but now the company is specifically facing the music for hosting lottery-style slot machine apps. The plaintiffs are demanding compensation.
Not only that, but the company has been under fire for its role in distributing loot box games, which have also been a point of contention for over a year now 1. However, this new lawsuit is focused on slot machine apps.
Lawsuits: Players Demanding Recovery
Two aggrieved Apple customers have initiated a class action lawsuit against Apple in the state of California. According to the complaint, the tech-giant is profiting from these illegal gambling activities through commissions and various transactions, with the customers demanding compensation and reimbursement of loses incurred while playing the slot machine apps 2. Moreover, the plaintiffs are trying to put an end to the further marketing and promotion of these apps through the App Store 2.
The statement of claim alleges that the company is deliberately distributing illegal gambling apps via its App Store. Despite the ban on such games in California, Apple continues to offer such apps to customers. The case is currently being heard by the United States District Court - Northern District of California under number 5:21-cv-00553.
The class action lawsuit claims that Apple collects a 30% commission on in-app purchases. This has long been a source of criticism, particularly with regards to the controversy over loot boxes, especially given that players spent nearly $6 billion worldwide in virtual gaming chips in 2020 [3]. Apple reportedly earned more money through loot boxes than from traditional gambling apps.
The two plaintiffs, Cheree Bibbs and Donald Nelson, argue that by offering these apps, Apple is encouraging gambling addictions among its customers and causing significant financial losses. In some cases, the players have lost well over $10,000-$30,000. While casinos would have to pay out at least 15% of winnings to customers, iPhone maker Apple retains a larger percentage of money triggered by these games. According to their statement 2,
"Apple knowingly promoted and monetized a gambling operation preying on the most vulnerable members of its customer base. Apple concealed this operation from App Store users. By profiting from these apps, Apple is supporting illegal, harmful activity and directly contributing to serious financial losses incurred by consumers who unwittingly used them."
Loot Boxes still a pressing issue
Apple isn't the only company facing legal battles over its gaming apps. The ongoing controversy over loot boxes in video games and apps has resulted in several lawsuits by parents, who argue that the games could potentially lead to problematic gambling habits in young people [3]. This is why a class action lawsuit has also been filed in California. The complaint claims that loot boxes create a link to the world of gambling and encourage a tendency towards gambling among children and teens.
In 2019, Apple wisely introduced stricter age restrictions for gambling-related apps, preventing underage individuals from accessing them [4]. Yet, the existing age ratings for loot box games remain a problem for many concerned parents [5]. Some countries like Belgium and the Netherlands have already banned such games, and others are considering a ban or further strict regulations. This is especially true for the United Kingdom, Germany, and the United States [5].
What are Loot Boxes?
Loot boxes are a popular feature in many gaming apps. They can be found in games like Mario Kart, Star Wars: Battlefront II, or FIFA, and function as randomized items offered through virtual treasure chests. Players can purchase keys to these loot boxes, known as microtransactions, and receive a random selection of items.
Critics equate loot boxes with gambling, asserting that the element of chance is similar to that found in a lottery. In response to these assessments, the UK has launched a large-scale investigation into the impact of loot boxes on gaming and the possibility of a ban or stricter regulations on their use [3]. If this trend continues, it could have grave consequences for companies like Apple, Google, and EA.
1 https://daily.sbnation.com/2020/11/6/21565221/apple-slot-machines-lawsuit-class-action2 https://law&crime.com/courts/2021/05/18/apple-sued-by-2-customers-over-alleged-profit-from-slot-machine-games-a-moral-obligation-to-inform-users-of-their-true-nature/[3] https://www.theverge.com/2020/10/13/21511704/loot-boxes-european-union-proposal-video-games-in-app-purchases[4] https://www.usatoday.com/story/tech/columnist/2019/11/25/apple-google-change-gambling-app-policies-lawsuit/4301945002/[5] https://www.mashable.com/article/apple-loot-boxes?utm_source=twitter.com&utm_medium=social&utm_campaign=mashable_comm_uk-Response_Top%20stories
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Source: www.onlinecasinosdeutschland.com
