Lawsuit filed against Google regarding gambling-related apps.
Popular tech company Google LLC is currently facing two class action lawsuits regarding the promotion and distribution of what could be potentially illegal gambling applications on their Play Store. The first lawsuit targets apps from Zynga, while the second focuses on those from DoubleU Games. Google is accused of making money through in-app purchases related to these so-called social casino games. This is not the first time Google has been accused of this, as a similar lawsuit was recently leveled against Apple. Are these accusations valid?
The 30% Fee for In-App Purchases
Recently, a consumer filed a class action lawsuit in California's Northern District against Google LLC and Google Payment Corp. The lawsuit accuses Google of profiting from apps they claim flout gambling laws by Zynga Inc. and sold in their Play Store. Zynga itself has also been the target of a previous lawsuit.
Additionally, the complaint states that Google offers a variety of casino-style games, including slot machines, table games, and other gambling apps through their Play Store. These games require users to pay for the apps or make in-app purchases through Google Play to participate. Google allegedly requires developers to use its own billing system for these in-app purchases, earning them a 30% commission on each transaction.
The plaintiffs allege that both Google and Zynga share the blame for the types of apps in question. Google is argued to allow unlicensed casinos to operate in the Play Store.
Google only recently permitted gambling apps featuring real money in several countries. Prior to this, only the UK, France, Ireland, and Brazil allowed real money gambling. The new countries include Germany, Japan, Denmark, Sweden, Norway, Finland, Spain, Canada, and the USA - countries where such apps were previously prohibited. Operators were forced to distribute their apps through alternative stores or their own websites. Google's guidelines on gambling apps categorize these into four categories: online casino games, sports betting, lotteries, and Daily Fantasy Sports (DFS).
Zynga and Other Developers' Social Casino Apps
The apps in question are social casino games, not gambling games with real money. Once installed, players receive some free game coins or chips the first time they play. They are also given the chance to win more coins or chips through slot machine-like games.
However, these game coins quickly run out, prompting players to buy more with real money. If they do not, they cannot continue playing. Additionally, players cannot win and collect real money to buy more chips. Instead, they can only prolong their game time by purchasing chips with real money. Since players must pay real money to get a chance at winning more gaming time, these apps could be in violation of gambling laws in 25 US states.
In 2019, Americans are said to have lost around 3.5 billion US dollars as a result of these social casino apps. Despite being advertised as "free-to-play," they are allegedly used to earn billions for Google. The plaintiffs are seeking compensation and an end to further marketing of these apps. Apple is also facing a lawsuit for similar reasons.
According to the lawsuit against Google, although players cannot win real money while playing, they must spend and lose money in order to participate in the games. This poses significant consumer protection concerns, with a small group of individuals responsible for a large portion of the revenue generated. Google is seen to profit from gambling-related damages.
Recovering Gambling Losses and More
One of the plaintiffs shared his story, explaining that he downloaded Willy Wonka Slots (by Zynga) without paying any fees. Over three months, he spent 160 US dollars on game chips just to keep playing the game. The lawsuit's primary goal is to recover gambling losses.
Other claims include violations of civil remedy laws and unjust enrichment. The plaintiff seeks damages, restitution, disgorgement of costs and fees, prejudgment interest, and other forms of relief. The lawsuit applies to anyone who has paid Google for gaming chips in Zynga or DoubleU casinos. Citizens of Alabama, Arkansas, Connecticut, Georgia, Illinois, Indiana, Kentucky, Massachusetts, Minnesota, Mississippi, Missouri, Montana, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oregon, South Carolina, South Dakota, Tennessee, Vermont, Virginia, Washington, and West Virginia are amongst those affected. The lawsuit's success remains uncertain.
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Source: www.onlinecasinosdeutschland.com
