Amazon is facing a class-action lawsuit filed by Nevada resident Steven Horn with the help of Edelson Law Firm. The lawsuit accuses Amazon of participating in illegal gambling operations by allowing customers to play addictive social games.
According to the lawsuit, Amazon gained billions of dollars through the illegal gambling enterprise. Although social casino websites are legal across most of the United States. the US, they’re designed for fun and entertainment.
Social games rely on virtual coins and sweepstakes that don’t involve real money transactions. However, the social casino apps Amazon promotes include processing payments for virtual chips in exchange for real money.
The lawsuit points out that Amazon provides over 30 Vegas-style social casino apps that are very addictive. Steven Horn is represented by Chicago law firm Edelson, which has secured millions of dollars in similar class-action lawsuits over social casino apps.
Amazon Garnering Billions in Illicit Gambling Activity
Amazon is at the center of a lawsuit filed in the Washington Federal Court. The lawsuit cites a 2018 US appeals court ruling that identified social casino applications as illegal forms of betting. Such apps are not allowed under the Washington state gambling law.
The new lawsuit filed by Horn emphasized the highly profitable and addictive nature of social casino games. According to the class action complaint, Amazon participates in the targeting, retaining, and collecting losses from gamblers.
The online shopping giant allows, distributes, and promotes social casino apps in its stores. Not only does Amazon expose its customers to these gambling products, but it also shares a substantial portion of the losses that gamblers incur.
Amazon gets a 30% commission on every bet in exchange for delivering the gambling apps and providing the casino operators with player data and insight. This translates into billions of dollars in revenue. According to the lawsuit, Amazon is as liable as the casino app providers because they know social casino apps are illegal in Washington.
Lawsuit Claims $1.8 Billion in Alleged Revenue
The class action lawsuit against Amazon points out data from Statista. According to the report, the estimated loss incurred through social casinos in 2020 was $6 billion. Amazon earns 30% of these losses, states the lawsuit. The online store made about $1.8 billion in 2020.
Partnerships between social casinos and Amazon are profitable exchanges, with Amazon as the distributor and paymaster. The lawsuit seeks to force Amazon to withdraw from supporting illegal social casino games and practices.
Monopoly Slots-Casino Games, Jackpot Party, Black Diamond Casino, and LOTSA are among the 34 brands named in the lawsuit. The lawsuit now requires those who’ve profited from these illegal games to pay back the customers.
Since Amazon has absolute authority over the apps that may be sold and promoted through its shops, it’s entwined with the practice. The online shopping powerhouse faces charges for targeting, retaining, and taking profits from vulnerable gamblers.
According to the lawsuit, social casino apps combine addictive elements of classic gambling machines and table games with big data and network pressure antics. Amazon provides data and insights social casinos need to identify and develop vulnerable addicts.
The lawsuit claims social casinos can’t survive or generate billions without the promotion and distribution Amazon provides. Amazon has yet to issue a written reply to the case, which is now in the Washington Federal Court.