Judge Allows Racketeering Lawsuit Against Meta, Google, Apple to Proceed
A federal judge has denied motions by Meta Platforms (Facebook), Google (Alphabet), and Apple to dismiss a racketeering conspiracy lawsuit. U.S. District Judge Edward Davila in San Jose, California, ruled the lawsuits, which allege the tech giants promoted illegal gambling through social casino apps, can continue.
Dozens of plaintiffs claim Apple (via the App Store), Google (via the Play Store), and Meta (via Facebook) promoted an “authentic Vegas-style experience of slot machine gambling.” The plaintiffs allege the companies exploited users, leading to depression and suicidal thoughts. The tech firms reportedly earned over $2 billion by mediating and collecting a 30% commission on these transactions.
Dismissal of the Section 230 Defense
A key part of Judge Davila’s decision involved striking down the companies’ primary defense. Apple, Google, and Meta had argued that Section 230 of the federal Communications Decency Act protects them. This law generally grants online platforms immunity from liability for third-party content.
Judge Davila rejected this core defense. He determined the companies did not act as “publishers” while processing payments. The firms’ actions during payment processing nullified their immunity claims under Section 230. The judge stated that the “essence of the plaintiffs’ theory is that the defendants improperly processed payments for social casino apps.”
The lawsuit, which began in 2021, will now move forward. Plaintiffs seek unspecified compensatory damages and triple damages from the tech companies.
Immediate Appeal to be Filed
Judge Davila permitted the defendant companies to file an immediate appeal of his ruling. The case will move to the 9th U.S. Circuit Court of Appeals.
The judge allowed the swift appeal partly due to the importance of the Section 230 issues involved. The 9th Circuit previously dismissed earlier appeals in May 2024, claiming a lack of jurisdiction at that time.
While Judge Davila dismissed some claims based on certain state laws, he refused to dismiss all claims brought under consumer protection statutes, except for those specific to California. The tech giants are expected to use the right to immediate appeal as they continue to defend against the racketeering and consumer protection allegations.
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