A federal judge in California has denied motions by Apple, Google, and Meta Platforms to dismiss lawsuits accusing them of profiting from illegal gambling by hosting and taking commissions from casino-style apps that allegedly addict users.

U.S. District Judge Edward Davila, based in San Jose, rejected the companies’ primary argument that Section 230 of the Communications Decency Act shielded them from liability. While he dismissed some claims under state laws, he upheld most allegations filed under consumer protection statutes, except in California.

Allegations Against Tech Giants

According to dozens of plaintiffs, Apple’s App Store, Google Play, and Meta’s Facebook promoted an “authentic Vegas-style slot machine experience” as part of an illegal racketeering scheme. The lawsuits allege that by brokering transactions and collecting 30% commissions worth more than $2 billion, the companies enabled addictive gambling behavior that led to depression, suicidal thoughts, and other harms.

Court’s Ruling and Section 230 Debate

In his 37-page ruling, Judge Davila emphasized that Apple, Google, and Meta did not act as “publishers” when processing payments, weakening their Section 230 immunity defense. He further stated that providing “neutral tools” to app developers did not absolve them of responsibility.

“The crux of plaintiffs’ theory is that defendants improperly processed payments for social casino apps,” Davila wrote. “It is beside the point whether that activity turns defendants into bookies or brokers.”

Next Steps

Judge Davila also ruled that Apple, Google, and Meta may immediately appeal to the 9th U.S. Circuit Court of Appeals, citing the importance of Section 230 issues in the case.

Apple, Google, and Meta have not yet issued public comments, while the plaintiffs’ attorneys have also declined to respond at this stage.