Amazon settlement lets customers pursue $200 million from social casino app developers
Amazon has agreed to a settlement allowing consumers to seek $201 million from social casino app developers over alleged illegal gambling.Summary
Amazon has reached a class action settlement in a federal court in Seattle regarding allegations that it violated Washington gambling and consumer protection laws. The lawsuit, filed in 2023, claims Amazon brokered illegal gambling transactions through social casino apps available on its Appstore. Under the terms of the agreement, Amazon will not pay into a settlement fund directly; instead, it will accept a $201 million judgment and assign its rights to seek reimbursement from the third-party app developers to the class members.
Amazon has denied any wrongdoing and stated that the settlement allows it to continue offering variety in its Appstore while requiring developers to implement changes that improve customer experience. The $201 million judgment represents approximately 30% of the class members' spending on these apps, according to the plaintiffs. Any funds recovered from the developers will be distributed to the affected consumers.
This legal action is part of a broader effort against the social casino industry, with previous settlements against developers having returned over $650 million to consumers. Similar legal challenges are currently pending against other major technology companies, including Apple, Google, and Meta, all of which have denied wrongdoing.
(Source：Reuters)