A drawn-out case involving Amazon and the issuing of virtual casino chips could allow members of a class-action lawsuit to receive more than $200m.
The e-commerce giant was accused of being in breach of the Consumer Protection Act and Washington gambling law, through illegal transactions on the app store.
It’s a case that has rumbled on for a significant amount of time. However, recent court documents reveal Amazon filed a motion for preliminary approval to settle the suit.
The case was originally put forward by Nevada resident Steven Horn, who accused Amazon of “brokering illegal gambling transactions on social casino apps available through the Amazon Appstore”.
The suit takes issue with Amazon being the “exclusive payment processor for in-app purchases of virtual casino chips in those apps”. It also concerns developers and acknowledges the company taking a 30% cut of each transaction.
Casino games suppliers will face the wrath of the settlement, in what could be a significant blow to the smaller developers in the social casino sector.
The trust will enable class members to pursue reimbursement from developers through “Amazon’s contractual indemnification rights” against the developers of those apps.
Amazon is safeguarded by Section 230 of the Communications Decency Act (CDA), which protects online firms from claims over third‑party content.
Furthermore, Amazon’s decision to settle the lawsuit resolves all claims made against the company.
