Apple Accused Of Running An "Unlicensed Casino" In App Store Lawsuit
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Apple is facing a lawsuit that claims that the App Store is operating as an "unlicensed casino." It argues that Apple is not only allowing a number of gambling apps to operate illegally but that it is profiting from them due to the commission it takes on app payments. High-spending app users are also said to be "specifically targeted" by the apps to maximize revenues.
This is not the first run-in Apple has had with the courts to do with gambling, with it having been sued last year for allowing so-called 'loot box' apps in its App Store. This new lawsuit concerns casino apps that are initially free to play but then offer users the chance to buy more playing time. The claim states that paying money in a game for a chance to win more playing time is illegal in 25 US states.
As reported by Apple Insider, the lawsuit accuses Apple of allowing a number of illegally operating casino apps developed by DoubleU on App Store, including DoubleU Casino, Take 5 Slots, Hello Vegas Slots, and Double U Bingo. As many casino apps work, new players receive a good chunk of free credits, which are easily lost after playing the usual slate of games like poker and blackjack. The apps then prompt users to buy more credits using real money. The plaintiffs in the case allegedly spent varying amounts of real money on the apps.
Why Is This Bad?
According to a study cited in the suit, "58.3 percent of disordered gamblers... stated that social casino games were their first experiences with gambling." Further, the apps are said to use artificial intelligence to present more purchase options to users who are more likely to spend more. Such a system is, of course, ethically questionable for those facilitating it and problematic for those living with gambling addiction.
Apple's App Store commission means that the developers of such apps aren't the only ones benefitting from them. As the complaint concludes: "Apple actively enables, permits, promotes, and profits from illegal gambling." Whether this is an oversight by Apple or it takes a different view about its involvement or what constitutes gambling in this instance remains to be seen. Even were the company to be cleared, though, a tougher line on gambling apps in the App Store could perhaps be expected.
