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Amazon has agreed to settle a class-action lawsuit accusing it of facilitating illegal gambling transactions through social casino apps sold on its Appstore.
Under the proposed deal, Amazon will not pay consumers directly. Instead, it will accept a $201 million judgment against itself and hand over its legal rights to pursue reimbursement from the apps’ developers.
Consumers pursue developers, not Amazon, for damages
The settlement was filed Thursday, July 9, in the U.S. District Court for the Western District of Washington in Seattle. Amazon denies any wrongdoing, and the deal does not establish liability against the company.
Rather than paying into a settlement fund, Amazon has consented to a $201 million “covenant judgment” — a figure representing roughly 30% of what class members spent on virtual chips in the apps.
Class members agree not to collect that judgment from Amazon. Instead, Amazon will assign them its contractual indemnification rights against the developers, letting consumers pursue those companies for reimbursement. Amazon has also agreed to contribute $2.5 million toward the cost of notifying class members and administering the settlement.
The social casino lawsuit behind the settlement
The lawsuit, filed in November 2023 by Nevada resident Steven Horn, alleged that Amazon violated Washington state’s gambling law and its Consumer Protection Act by acting as the exclusive payment processor for in-app purchases of virtual casino chips — and collecting a 30% commission on each transaction. The case, Horn v. Amazon.com Inc., is being heard under case number 2:23-cv-01727-RSL.
Washington has some of the strictest gambling laws in the country, and courts there have previously ruled that virtual chips can qualify as “things of value” under state law, a precedent that has fueled a wave of lawsuits against social casino operators and the platforms that distribute their apps.
Plaintiffs’ attorneys said earlier settlements with app developers have already returned more than $650 million to consumers nationwide, and that this case is meant to keep pace with those prior recoveries, according to a Tekedia report on the settlement.
Similar lawsuits remain active against Apple, Google and Meta over their handling of social casino apps; all three companies have denied wrongdoing.
Court approval still required before payouts begin
Before any money changes hands, the settlement must clear several remaining steps: certification of the class, preliminary approval from the court, a notice period for class members, and a final approval hearing.
Only after that process concludes could eligible consumers begin pursuing claims against the app developers.
