Amazon Seeks Legal Shield in Casino-Style App Lawsuit

10.01.2024

Amazon has entered the legal fray by asserting that U.S. laws protecting internet platforms should exempt them from claims related to third-party content, specifically in a recent consumer lawsuit.

This lawsuit accuses Amazon of profiting from unlawful casino-style apps hosted on their website.

Legal Proceedings and Potential Precedent

In a recent filing, Amazon requested a Seattle federal judge to pause the consumer case, pending a decision by the 9th U.S. Circuit Court of Appeals on similar lawsuits involving major tech companies like Google (GOOGL.O), Apple (AAPL.O), and Meta’s Facebook . This decision, expected by year’s end, could have significant implications, potentially involving hundreds of millions of dollars in damages.

Central to Amazon’s defense is Section 230 of the Communications Decency Act of 1996, which offers protections to tech companies hosting third-party content on their platforms. This law is pivotal as it shapes the responsibilities and liabilities of tech companies regarding user-generated content.

The Case Against Amazon

Filed in November, the lawsuit against Amazon alleges that the company facilitated more than 30 illegal casino apps, positioning Amazon as a virtual “bank” for these operations. The plaintiff, a Nevada resident, claims addiction to these “illegal slots,” spotlighting the social implications of such apps. The 9th Circuit had previously ruled in 2018 that casino-style apps violate Washington state gambling law.

While many casino games have settled similar lawsuits, the focus has shifted to platforms like Amazon, accused of enabling unlawful gambling enterprises. The legal representation for the plaintiffs, Edelson, has opposed the motion to put the case on hold, representing a prospective class of “tens of thousands of consumers.”

Our Comment on the Article

Amazon’s move to seek legal shelter under Section 230 in this casino-style app lawsuit reflects the complex interplay between technology, law, and consumer protection. This case could set new legal precedents, redefining the boundaries of responsibility for tech giants in the realm of online gambling.

It underscores the need for clear regulatory frameworks that balance innovation and consumer safety in the rapidly evolving digital landscape. As the legal battle unfolds, it will be crucial to monitor its implications for consumer rights, corporate accountability, and the future of online gambling regulations.