A U.S. federal judge has ruled that Apple, Google and Meta must face lawsuits accusing them of promoting and profiting from casino-style gambling apps, rejecting their efforts to dismiss the cases under Section 230 of the Communications Decency Act. The lawsuits claim that the companies enabled illegal gambling by distributing digital slot-machine games, encouraging user engagement, and collecting commissions on in-app purchases.

Judge Edward Davila, presiding in San Jose, California, found that Section 230 does not shield the firms in this matter because their role extended beyond publishing third-party content. By processing transactions and allegedly receiving commissions of up to 30 percent, the companies were not acting as neutral platforms, the court said. Plaintiffs argue that these practices allowed the tech giants to collectively generate billions of dollars in revenue from apps that fostered addictive behavior.

While some state-level claims were dismissed, the judge allowed consumer protection lawsuits from across the United States to proceed. The plaintiffs are seeking compensation, including treble damages, and allege that the companies knowingly benefited from harmful games designed to mimic real casino experiences. Reported harms include financial losses, addiction, and mental health issues such as depression linked to compulsive play.

The cases, originally filed in 2021, accuse the firms of effectively running a racketeering scheme by offering platforms for gambling-style products while taking a share of the profits. By doing so, plaintiffs contend, the companies crossed a line from being passive hosts to active participants. The decision has been allowed an immediate appeal to the Ninth U.S. Circuit Court of Appeals, reflecting the importance of clarifying the scope of Section 230 protections.

The ruling signals growing judicial scrutiny of Big Tech’s monetization strategies and could reshape how platform operators are held accountable for user harms linked to digital products.