On Friday, October 23, 2020, a class-action lawsuit was filed against Apple, Inc., on behalf of Ohio residents, alleging that Apple “promotes, enables, and profits from games downloaded from its App Store. . . that constitute illegal gambling.” Plaintiff Sean McCloskey filed the lawsuit in the U.S. District Court, Southern District of Ohio, seeking recovery of all money paid through in-app purchases in gambling games made through Apple’s App Store, pursuant to Section 3763.02 of the Ohio Revised Code.
A 159-count indictment against eight individuals and two businesses has been unsealed in Cuyahoga County. Charges included racketeering for distributing illegal video slot machines to bars across the state, primarily in Cuyahoga, Ashtabula, Ashland, Lake and Wayne counties. In summary, who controls slot machine odds is answered by understanding they are controlled by the machine, the casino staff, both, possibly the state if the machine is a video lottery terminal, and by slot machine manufacturers themselves in the case of most Progressive slot machines.
The complaint alleges that the gambling apps in question are initially free to download but utilize in-app purchases to entice users to continue using the apps. Apple takes a 30% processing fee of all in-app purchases, which the complaint notes is “many times the charge that other payment processors outside the Apple ecosystem. . . charge for processing such payments.” The specific apps in question in the lawsuit are characterized as “no more or no less than casino-style slot machines, casino style table games, and other common gambling games.” App users are given a set number of free starting “coins,” and users can either win more coins or purchase additional coins using real money. Users cannot collect cash as a result of winning games but, instead, are awarded more coins, thus resulting in additional playing time.
Ohio Revised Code Section 2915.01(C)(7) states that “[v]aluable consideration is deemed to be paid for a chance to win a prize [when a] participant may purchase additional game entries by using points or credits won as prizes while using the electronic device.” Further, Ohio case law has concluded that the payment of real money in a game for an opportunity to win free replays or additional playing time constitutes illegal gambling. The complaint states that Apple “is the principal promoter and facilitator of the illegal activity” because it “maintains dictatorial control over what apps can be downloaded from the App Store, and the payment method to purchase in-app items.” Further, the complaint alleges that, despite having the technology and ability to geo-restrict app usage, Apple has not done so in Ohio.
The complaint seeks to certify a class of “[a]ll Ohio residents who downloaded, played, and paid money for additional coins within games from the Apple App Store that featured slots, roulette, blackjack, poker, keno, craps, and other kinds of casino-style gambling games, bingo, or simulations thereof, where the player had a chance to win coins or other means to play for additional periods of time.” The complaint seeks relief in the form of “a refund of all money paid through the illegal gambling games described [in the complaint.]”
Additional Reading
Ohio Consumer Sues Apple For Allowing “Scheme of Chance” Gambling Games On App Store, Law Street Media (October 26, 2020)
McCloskey v. Apple, Inc. (Case No. 3:2020cv00434)
Complaint in McCloskey v. Apple, Inc.
Photo Credit: OpturaDesign / Shutterstock.com
Today on VerdictHow Mike Huckabee and Robert Bork Could Help Center Neil Gorsuch
Cornell law professor Sherry F. Colb analyzes an unusual comment by former Arkansas Governor Mike Huckabee that a government restriction on the size of people’s Thanksgiving gathering would violate the Fourth Amendment’s guarantee against unreasonable searches and seizures.Subscribe to Justia's
This is a list of potential restrictions and regulations on private ownership of slot machines in the United States on a state by state basis.
| State | Legal Status |
|---|---|
| Alabama | Class II machines legal |
| Alaska | All machines legal |
| Arizona | Machines 25 years or older legal[1] |
| Arkansas | All machines legal |
| California | Machines 25 years or older legal |
| Colorado | Machines before 1984 legal |
| Connecticut | All machines prohibited |
| Delaware | Machines 25 years or older legal |
| District of Columbia | Machines before 1952 legal |
| Florida | Machines 20 years or older legal |
| Georgia | Machines before 1950 legal |
| Hawaii | All machines prohibited |
| Idaho | Machines before 1950 legal |
| Illinois | Machines 25 years or older legal |
| Indiana | Machines 40 years or older legal |
| Iowa | Machines 25 years or older legal |
| Kansas | Machines before 1950 legal |
| Kentucky | All machines legal |
| Louisiana | Machines 25 years or older legal |
| Maine | All machines legal |
| Maryland | Machines 25 years or older legal |
| Massachusetts | Machines 30 years or older legal |
| Michigan | Machines 25 years or older legal |
| Minnesota | All machines legal |
| Mississippi | Machines 25 years or older legal |
| Missouri | Machines 30 years or older legal |
| Montana | Machines 25 years or older legal |
| Nebraska | All machines prohibited |
| Nevada | All machines legal |
| New Hampshire | Machines 25 years or older legal |
| New Jersey | Machines before 1941 legal |
| New Mexico | Machines 25 years or older legal |
| New York | Machines 30 years or older legal |
| North Carolina | Machines 25 years or older legal |
| North Dakota | Machines 25 years or older legal |
| Ohio | All machines legal |
| Oklahoma | Machines 25 years or older legal |
| Oregon | Machines 25 years or older legal |
| Pennsylvania | Machines 25 years or older legal |
| Rhode Island | All machines legal |
| South Carolina | All machines prohibited |
| South Dakota | Machines before 1941 legal |
| Tennessee | All machines prohibited |
| Texas | All machines legal |
| Utah | All machines legal |
| Vermont | Machines before 1954 legal |
| Virginia | All machines legal |
| Washington | Machines 25 years or older legal |
| West Virginia | All machines legal |
| Wisconsin | Machines 25 years or older legal |
| Wyoming | Machines 25 years or older legal |
Indiana Slot Machine Laws
References[edit]
- ^Arizona State Legislature ARS §13-3309 paragraphs D&E
Ohio Slot Machine Laws
External links[edit]
Ohio Slot Machine
- U.S. Slot Machine Laws & Statutes by State, Gameroom Show