Amazon has agreed to a proposed $201 million settlement in a U.S. class-action lawsuit alleging it facilitated illegal gambling transactions through social casino applications available on its Amazon Appstore.
The proposed settlement, which remains subject to approval by the U.S. District Court for the Western District of Washington, would resolve all claims against Amazon while allowing consumers to seek reimbursement from social casino game developers rather than the e-commerce company itself.
The lawsuit, filed in November 2023 by Nevada resident Steven Horn, alleged Amazon violated Washington’s Consumer Protection Act and state gambling laws by acting as the exclusive payment processor for in-app purchases of virtual casino chips in social casino apps distributed through the Amazon Appstore. The plaintiffs also alleged Amazon received a 30% commission on those transactions.
Amazon has denied any wrongdoing but agreed to settle the claims.
Under the proposed agreement, class members would not execute the $201 million judgment against Amazon. Instead, the settlement establishes a litigation trust that would allow consumers to pursue reimbursement from 32 social casino game developers using Amazon’s contractual indemnification rights.
The proposed judgment represents 30% of every dollar class members spent on social casino applications during the relevant period. Amazon will also contribute $2.5 million to cover upfront costs associated with class notices and settlement administration.
In a motion seeking preliminary approval of the settlement, the plaintiffs said: “The class is poised to recover a significant portion of their total losses that keeps pace with the settlements achieved against the social casino developers.”
The court filing added: “Under this framework, the class stands to recover from the developers themselves a significant percentage of the class’s damages in an amount that falls directly in line with the prior developer settlements.”
Amazon said developers will be required to “improve the customer experience” and ensure their applications comply with applicable laws. The company said it will not hesitate to remove applications that fail to meet those requirements.
The settlement comes as social casino and sweepstakes gaming operators face increased scrutiny across the United States, with regulators and lawmakers arguing that such products use virtual currencies to circumvent gambling laws.
Separate lawsuits involving social casino and sweepstakes gaming platforms remain pending against Apple, Google and Meta, including claims brought under the Racketeer Influenced and Corrupt Organizations (RICO) Act.
Original article: https://www.yogonet.com/international/news/2026/07/14/125367-amazon-agrees-to-proposed-201-million-settlement-in-us-social-casino-lawsuit
