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Apple, Google, and Meta Must Face Lawsuits Over Casino-Style Gambling Apps

A U.S. federal judge has ruled that Apple, Google, and Meta Platforms must face lawsuits accusing them of promoting and profiting from illegal casino-style gambling apps, rejecting their efforts to dismiss the claims under Section 230 of the Communications Decency Act.

In a decision issued Tuesday, Judge Edward Davila of the U.S. District Court in San Jose, California, denied the companies’ main argument that the federal law shields them from liability for third-party content, saying the lawsuits focus on their active role in processing payments and collecting commissions, not merely hosting apps.

The lawsuits, filed as proposed class actions, allege that Apple’s App Store, Google Play Store, and Meta’s Facebook enabled and profited from apps simulating “Vegas-style” slot machine gambling that have led to user addiction, depression, and even suicidal behavior. The plaintiffs claim the companies brokered and collected 30% commissions — estimated to exceed $2 billion — from in-app purchases.

While some state-level claims were dismissed, Davila allowed most consumer protection claims to proceed, except those filed in California. He stated that the platforms’ activities went beyond publishing and that providing “neutral tools” did not absolve them from 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.”

The companies now have the option to appeal immediately to the 9th U.S. Circuit Court of Appeals, with Davila acknowledging the national importance of Section 230 immunity questions.

The ongoing litigation, which began in 2021, consolidates several related cases:

  • In re Apple Inc. App Store Simulated Casino-Style Games Litigation (No. 21-md-02985)

  • In re Google Play Store Simulated Casino-Style Games Litigation (No. 21-md-03001)

  • In re Facebook Simulated Casino-Style Games Litigation (No. 21-02777)

The plaintiffs are seeking unspecified compensatory and triple damages, along with other remedies.

Singapore Threatens Meta With Fines Over Facebook Impersonation Scams

The Singapore government has given Meta Platforms until the end of this month to introduce stronger safeguards, including facial recognition technology, to combat impersonation scams on Facebook—or face steep fines.

The Ministry of Home Affairs said on Thursday that Meta could be fined up to S$1 million ($776,639) if it fails to comply “without reasonable excuse.” After the deadline, Meta would face additional penalties of S$100,000 per day until measures are implemented.

The directive, issued Wednesday, follows a surge in scams involving fake ads, accounts, and business pages impersonating government officials. Authorities say incidents of such scams rose sharply between June 2024 and June 2025.

A Meta spokesperson said impersonation and deceptive ads are against company policy, adding: “We remove these when detected.” The spokesperson noted that Meta uses specialized systems to catch fraudulent accounts and “celeb-bait” ads, and works with law enforcement to pursue legal action against scammers.

Earlier this month, Singapore police ordered Meta to step up anti-scam measures on Facebook, but that directive did not include a compliance deadline.

Officials said this is the first enforcement order under Singapore’s Online Criminal Harms Act, which came into effect in February 2024. The law gives regulators new powers to hold platforms accountable for online scams and harmful digital activity.

“While Meta has taken steps to address impersonation scams globally, including in Singapore, the Ministry of Home Affairs and police remain concerned by the prevalence of such scams locally,” the ministry said.

Meta’s Mark Zuckerberg Considered Instagram Spinoff Amid Ongoing Antitrust Scrutiny, Documents Reveal

In 2018, Meta CEO Mark Zuckerberg seriously considered spinning off Instagram, fearing increasing antitrust scrutiny, according to a document presented during a trial in Washington. The document was revealed on the second day of Zuckerberg’s testimony in a high-profile case where the U.S. Federal Trade Commission (FTC) is attempting to reverse Meta’s acquisitions of Instagram and WhatsApp. This legal battle aims to undo the mergers, which the FTC claims reduced competition in the social media market.

The memo, shown during the trial, revealed Zuckerberg’s candid thoughts on the matter. In it, he mused, “I wonder if we should consider the extreme step of spinning Instagram out as a separate company.” At the time, Meta was contemplating a major reorganization, aiming to better integrate its social media platforms. However, Zuckerberg also acknowledged that consolidating the apps could foster “strong business growth,” even though it could risk undermining Facebook’s flagship app and its broader family of services.

Despite these concerns, Meta ultimately decided against spinning off Instagram, choosing instead to push forward with its integration plans the following year. The decision not to break off Instagram underscores Zuckerberg’s assessment of the antitrust risks at play. The document reflects his awareness of the potential legal and regulatory challenges Meta might face, with antitrust pressure mounting in the tech industry.

Zuckerberg’s memo also highlighted a broader concern about the future of big tech. He expressed that, with rising calls to dismantle large tech corporations, it was likely that Meta could face forced separations in the future. Specifically, he noted that a shift in U.S. leadership, particularly under a “next Democratic president,” could lead to actions to break up major tech companies, including Meta’s prized acquisitions like Instagram and WhatsApp.