throbber

`
`Case 5:21-cv-00553 Document 1 Filed 01/22/21 Page 1 of 25
`
`
`
`Rafey S. Balabanian (SBN 315962)
`rbalabanian@edelson.com
`Todd Logan (SBN 305912)
`tlogan@edelson.com
`Brandt Silver-Korn (SBN 323530)
`bsilverkorn@edelson.com
`EDELSON PC
`123 Townsend Street, Suite 100
`San Francisco, California 94107
`Tel: 415.212.9300
`Fax: 415.373.9435
`
`Counsel for Plaintiffs and the Proposed Class
`
`
`
`UNITED STATES DISTRICT COURT
`NORTHERN DISTRICT OF CALIFORNIA
`
`
`
`
`
`
`DONALD NELSON, an individual, and
`CHEREE BIBBS, an individual, individually
`and on behalf of all others similarly situated,
`
`Plaintiffs,
`
`v.
`
`APPLE INC., a California corporation,
`
`Defendant.
`
`Case No. _________________
`
`CLASS ACTION COMPLAINT
`JURY DEMAND
`
`
`
`
`Plaintiffs Donald Nelson and Cheree Bibbs, individually and on behalf of a proposed
`class, bring this Class Action Complaint against Apple Inc. seeking restitution, damages, an
`injunction, and other appropriate relief from Apple’s ongoing participation in an illegal internet
`gambling enterprise. Plaintiffs allege as follows upon personal knowledge as to themselves and
`their own acts and experiences, and as to all other matters, upon information and belief.
`INTRODUCTION
`1.
`Over the last decade, the world’s leading slot machine makers—companies like
`International Game Technology, Scientific Games Corporation, and Aristocrat Leisure—have
`teamed up with American technology companies to develop a new product line: social casinos.
`2.
`Social casinos are apps, playable from smartphones, tablets, and internet
`browsers, that make the “authentic Vegas-style1” experience of slot machine gambling available
`
`Form F-1/A Doubledown Interactive Co., Ltd., https://sec.report/Document/0001193125-
`1
`20-183157/.
`CLASS ACTION COMPLAINT
`
`
`
`1
`
`Case No. __________________
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`
`

`

`Case 5:21-cv-00553 Document 1 Filed 01/22/21 Page 2 of 25
`Case 5:21-cv-00553 Document 1 Filed 01/22/21 Page 2 of 25
`
`to consumers anywhere and anytime. See Figure 1 (Screenshot of DoubleDown Casino
`
`Gameplay). By moving their casino games directly onto the phones and computers of players,
`
`and by leveraging an innocuous-sounding “free-to-play” model,2 social casino companies, along
`
`with Apple, Facebook, and Google (the “Platforms”), have found a way to smuggle slot
`
`machines into the homes of consumers nationwide, twenty-four hours a day and three-hundred-
`
`sixty-five days a year.
`
`3.
`
`Just like Las Vegas slot machines, social casinos allow users to purchase virtual
`
`“chips” in exchange for real money, and then to gamble those chips at slot machines games in
`
`hopes of winning still more chips to keep gambling. In DoubleDown Casino, for example,
`
`players purchase “chip packages” costing up to $499.99. See Figure 2 (Screenshot of “Popular”
`
`Chip Packages in DoubleDown Casino). But unlike Las Vegas slots, social casinos do not allow
`
`players to cash out their chips. Instead, purchased chips and won chips alike can be used only for
`
`more slot machine “spinning.”
`
`Figure 1
`
`, DOUBLE
`
`09w“ ,~.
`
`In H II
`UNJJ’OT
`
`._ .. -9--. “.9
`“'“W‘? A,..
`
`not!
`
`Figure 2
`
`_
`
`19995999 * _g‘3wmr.mmrow!,
`
`,
`
`nnmu An
`
`.—:. Q)
`
`.9 2,000,009,®9 .3” 99..
`
`.9 1,000,009,®o 9
`".
`ozsou
`
`9100,0099?) 9
`‘ff
`noon
`
`140,009@ ’3"
`
`'
`48909999 9
`
`5499.99
`
`999999
`
`$99.99
`
`55999
`
`539,99
`
`4.
`
`Nevertheless, like Las Vegas slots, social casinos are extraordinarily profitable
`
`and highly addictive. Social casinos are so lucrative because they mix the addictive aspects of
`
`2
`
`This term is a misnomer. It refers to a business model by which the initial download of
`the game is free, but companies reap huge profits by selling “in-game” items (known generally
`as “in-app purchases”).
`
`CLASS ACTION COMPLAINT
`
`Case No.
`
`WM
`
`\OOOQQUI-b
`
`ll
`
`12
`
`l3
`
`14
`
`15
`
`l6
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`

`

`
`
`Case 5:21-cv-00553 Document 1 Filed 01/22/21 Page 3 of 25
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`
`traditional slot machines with the power the Platforms, including Defendant Apple, to leverage
`big data and social network pressures to identify, target, and exploit consumers prone to
`addictive behaviors.3
`5.
`Simply put, the social casino apps do not, and cannot, operate and profit at such a
`high level from these illegal games on their own. Their business of targeting, retaining, and
`collecting losses from addicted gamblers is inextricably entwined with the Platforms. Not only
`do the Platforms retain full control over allowing social casinos into their stores, and their
`distribution and promotion therein, but they also share directly in a substantial portion of the
`gamblers’ losses, which are collected and controlled by the Platforms themselves.
`6.
`Because the Platforms are the centers for distribution and payment, social casinos
`gain a critical partner to retain high-spending users and collect player data, a trustworthy
`marketplace to conduct payment transactions, and the technological means to update their apps
`with targeted new content designed to keep addicted players spending money.
`7.
`Last year alone, consumers purchased and gambled away an estimated $6 billion
`in social casino virtual chips.4
`8.
`By utilizing Apple for distribution and payment processing, the social casinos
`entered into a mutually beneficial business partnership. In exchange for distributing the casino
`games, providing them valuable data and insight about their players, and collecting money from
`consumers, Apple (and the other Platforms) take a 30 percent commission off of every wager,
`earning them billions in revenue. By comparison, the “house” at a traditional casino only takes 1
`to 15 percent, while also taking on significant risk of loss in its operation. Apple’s 30 percent
`rake, on the other hand, is guaranteed for its ability to act as a casino “host” and bankroll.
`9.
`The result (and intent) of this dangerous partnership is that consumers become
`addicted to social casino apps, maxing out their credit cards with purchases amounting to tens or
`even hundreds of thousands of dollars. Consumers addicted to social casinos suffer a variety of
`
`See, e.g., How social casinos leverage Facebook user data to target vulnerable gamblers,
`3
`PBS NEWS HOUR, youtube.com/watch?v=FFtkFLNJZfM.
`4
`SciPlay Net Income Skyrockets 127 Percent, as Social Gaming Embraced by Americans
`Sheltered at Home, CASINO.ORG, https://www.casino.org/news/sciplay-net-income-skyrockets-
`127-percent-as-social-gaming-embraced.
`CLASS ACTION COMPLAINT
`
`Case No. __________________
`
`
`
`3
`
`

`

`
`
`Case 5:21-cv-00553 Document 1 Filed 01/22/21 Page 4 of 25
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`
`non-financial damages ranging from depression to divorce to attempted suicide.
`10.
`These devastating consequences are not hypothetical or hyperbole: below are
`excerpts of sworn testimony from individuals describing their experiences with three different
`social casinos at issue in this case:
`• DoubleDown Casino: “I was drawn to DoubleDown because I could play
`the same games that I played when I went to real casinos. Overall, I
`estimate that I have spent over $40,000 on chips in DoubleDown Casino. I
`am addicted to DoubleDown Casino . . . I knew being on DoubleDown
`Casino every day for hours was a problem, but I couldn’t seem to stop. I
`believe that DoubleDown is taking advantage of people’s addictions. They
`know that gambling is addictive, and they act exactly like a physical casino
`that pays out money. I feel alone and embarrassed about spending money to
`do something that only feeds my addiction. DoubleDown Casino consumes
`you, and makes you feel like you always have to go play. I feel guilty
`because I’ve spent money on DoubleDown that I’ve needed to pay bills or
`buy food.” Exhibit 1, Declaration of Willa Moore [emphasis added].
`• DoubleDown Casino: “I believe I have spent close to $25,000 on
`DoubleDown Casino. I would buy the chips with a credit card which I
`couldn’t pay in-full, so there’s interest on top of that too . . . I was a well-
`respected, active member of my community who owned my own business
`for 36 years. But when I retired, and my fellow started having health
`problems, DoubleDown Casino made me fall into the trap of escape and
`adrenaline rush to cope with all my other responsibilities. When I won, it
`was just great. When I lost, and started buying more and more chips, I felt
`lower than pond scum. I was sick to my stomach, felt like a total loser,
`wondered about suicide (although I would never leave my partner), could
`not sleep, had anxiety attacks with a rushing heart, and couldn’t eat. I just
`couldn’t understand how I could let it get so out of control. It was as if it
`had a power over me that I couldn’t break. I couldn’t stop.” Exhibit 2,
`Declaration of Jan Saari [emphasis added].
`• Jackpot Party Casino: “Overall, I believe that I have spent between
`$10,000-$20,000 playing Jackpot Party Casino. I was addicted to Jackpot
`Party Casino and I hate that . . . This kind of loss put a huge strain on my
`ability to even buy food . . . I believe Jackpot Party Casino had been taking
`advantage of my addiction . . . This game hurt me and the worst part was
`that when my husband was alive, he would say, ‘You’re not spending
`money on there are you?’ and I lied. I hate that I have to live with that
`now.” Exhibit 3, Declaration of Laura Perkinson [emphasis added].
`• Jackpot Party Casino: “I believe that I’ve spent at least $30,000 on
`Jackpot Party Casino . . . I am going through a divorce right now, in part
`because of how much money I spent on Jackpot Party . . . Scientific Games
`will provide incentives to their top spenders so that they continue to spend.
`I have received Christmas gifts two times. They have sent me a robe, oils,
`phone charger, bath bombs, a blanket, and more. I know that they have sent
`other players flowers and candies . . . This game has changed my way of
`thinking and caring. I never thought I would get addicted to anything
`except cigarettes, but this has taken too much of my life away. I don’t
`know how my life would be different without this game, but I know that it
`would be better and I know that I would be much better off financially . . . I
`
`CLASS ACTION COMPLAINT
`
`
`
`4
`
`Case No. __________________
`
`

`

`
`
`Case 5:21-cv-00553 Document 1 Filed 01/22/21 Page 5 of 25
`
`
`wish it didn’t exist.” Exhibit 4, Declaration of Donna Reed [emphasis
`added].
`• High 5 Casino: “I have spent at least $10,000 on coins in High 5 Casino . .
`. I believe I am addicted to High 5 Casino . . . I have tried to quit but I
`believe three weeks is the longest amount of time I’ve ever been able to
`stop . . . Sometimes I feel guilty about playing High 5 Casino and spending
`so much money. My husband does not know I have spent money on it. My
`grandkids will sometimes ask for money and I can’t give it to them because
`I have to save it for this game.” Exhibit 5, Declaration of Aida Glover
`[emphasis added].
`
`12.
`Unsurprisingly, social casinos are illegal under many states’ gambling laws.
`13.
`As the Ninth Circuit held in Kater v. Churchill Downs Inc., 886 F.3d 784, 785
`(9th Cir. 2018):
`
`In this appeal, we consider whether the virtual game platform “Big Fish
`Casino” constitutes illegal gambling under Washington law. Defendant–
`Appellee Churchill Downs, the game’s owner and operator, has made
`millions of dollars off of Big Fish Casino. However, despite collecting
`millions in revenue, Churchill Downs, like Captain Renault in Casablanca,
`purports to be shocked—shocked!—to find that Big Fish Casino could
`constitute illegal gambling. We are not. We therefore reverse the district
`court and hold that because Big Fish Casino’s virtual chips are a “thing of
`value,” Big Fish Casino constitutes illegal gambling under Washington law.
`
`
`14.
`As an instructive example, DoubleDown Casino is illegal both in Washington and
`here in California (where the Platforms, including Defendant Apple, host it and collect their 30%
`rake). This year, consumers will purchase approximately $300 million worth of virtual casino
`chips in DoubleDown Casino. That $300 million will be divided up approximately as follows:
`$170 million to DoubleDown; $30 million to International Game Technology (“IGT”) (a
`multinational slot machine manufacturer that licenses slot machine game IP to DoubleDown);
`and—as particularly relevant here—the remaining $100 million to Apple and the other Platforms
`(for hosting the app, driving vulnerable consumers to it, and processing the payments for those
`consumers’ virtual chip purchases).
`15.
`In other words, despite knowing that DoubleDown Casino is illegal, Apple and
`the other Platforms continue to maintain a sizable (30%) financial interest by hosting the game,
`driving customers to it, and acting as the bank.
`16.
`As such, DoubleDown, Apple, and the other Platforms are all liable as co-
`
`CLASS ACTION COMPLAINT
`
`
`
`5
`
`Case No. __________________
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`
`

`

`
`
`Case 5:21-cv-00553 Document 1 Filed 01/22/21 Page 6 of 25
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`
`conspirators to an illegal gambling enterprise. Moreover, DoubleDown Casino is just one of
`more than fifty social casino apps (the “Illegal Slots”) that the Platforms illegally host and profit
`from.
`
`17.
`Consequently, Apple and the other Platforms—alongside the Illegal Slot
`companies—are liable as co-conspirators to an illegal gambling conspiracy.
`18.
`Defendant Apple, for its part, is a direct participant in an informal association and
`enterprise of individuals and entities with the explicit purpose of knowingly devising and
`operating an online gambling scheme to exploit consumers and reap billions in profits (the
`“Social Casino Enterprise”).
`19.
`This ongoing Enterprise necessarily promotes the success of each of its members:
`Social casino operators, like DoubleDown, need Platforms like Apple, Google, and Facebook, to
`access consumers, host their games, and process payments. The Platforms, for their part, need
`developers like DoubleDown to publish profit-driven and addictive applications on their
`platforms to generate massive revenue streams.
`20.
`Through this case, Plaintiffs seek to force Apple to stop participating in, and to
`return to consumers the money it has illegally profited from, the Social Casino Enterprise.
`21.
`Plaintiffs, on behalf of the putative Class, bring claims for damages and for
`injunctive relief under the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. §
`1961, et seq. (“RICO”), and California’s Unfair Competition Law, Business and Professions
`Code § 17200, et seq. (“UCL”).
`
`PARTIES
`Plaintiff Donald Nelson is a natural person and a citizen of the State of
`
`22.
`Wisconsin.
`23.
`Plaintiff Cheree Bibbs is a natural person and a citizen of the State of Alabama.
`24.
`Defendant Apple Inc. is a corporation existing under the laws of the State of
`California with its principal place of business located at 1 Infinite Loop, Cupertino, California
`95014. Apple regularly conducts and transacts business in this District, as well as throughout the
`United States. Apple manufactures, markets, and sells the iPhone, among other electronic
`
`CLASS ACTION COMPLAINT
`
`
`
`6
`
`Case No. __________________
`
`

`

`
`
`Case 5:21-cv-00553 Document 1 Filed 01/22/21 Page 7 of 25
`
`
`devices, and owns and operates the Apple App Store, which comes preinstalled on every Apple
`device.
`
`I.
`
`JURISDICTION AND VENUE
`25.
`Federal subject-matter jurisdiction exists under 28 U.S.C. § 1332(d)(2) because
`(a) at least one member of the proposed class is a citizen of a state different from Defendant, (b)
`the amount in controversy exceeds $5,000,000, exclusive of interests and costs, and (c) none of
`the exceptions under that subsection apply to this action.
`26.
`The Court has personal jurisdiction over Defendant because Defendant is
`headquartered in this District and Defendant’s alleged wrongful conduct occurred in and
`emanated from this District.
`27.
`Venue is proper in this District under 28 U.S.C. § 1391(b) because a substantial
`part of the events giving rise to Plaintiffs’ claims occurred in and emanated from this District.
`GENERAL ALLEGATIONS
`Social Casinos Are Illegal Slot Machines Under California Law .
`28.
`Slot machines have long been outlawed in California.
`29.
`California law recognizes that a device can be an illegal slot machine without
`offering users the opportunity to win money.
`30.
`In fact, if a gaming machine has the look and feel of a slot machine, accepts real
`money for gameplay, and rewards a winning spin with an “additional chance or right to use the
`slot machine or device,” the device is an illegal slot machine.
`31.
`Consequently, social casinos, as described herein, are illegal slot machines under
`California law.
`32.
`California gambling law is, on this point, consistent with the laws of many other
`states—including Washington. In Kater, for example, the Ninth Circuit held that social casinos
`are illegal under Washington law because, while users cannot win money, social casino chips are
`“things of value” because they can be purchased for money, are awarded as prizes in social
`casino slot machines, and then can be used to allow players to keep spinning social casino slot
`machines. After two years of subsequent litigation, the parties in Kater reached a $155 million
`
`
`
`CLASS ACTION COMPLAINT
`
`
`
`7
`
`Case No. __________________
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`
`

`

`
`
`Case 5:21-cv-00553 Document 1 Filed 01/22/21 Page 8 of 25
`
`
`nationwide class action settlement. The settlement was preliminarily approved and a final
`approval hearing is set for February 2021.5
`33.
`California aggressively regulates all forms of gambling. One reason it does so is
`to prevent consumers from being cheated by professional gambling operations.
`34.
`Because social casinos have previously operated as if they were not subject to
`gambling regulations, they do not comply with any of the regulations that govern the operation
`of slot machines.
`35.
`Notably, while any legitimately operated slot machine must randomize its results,
`social casinos do not randomize their results. Instead, social casinos tailor “wins” and “losses” in
`such a way as to maximize addiction (and, in turn, revenues). As the CEO of Double Down
`Casino once explained, “[o]ur games aren’t built to be bulletproof like you’d need to be if you’re
`a real gambling company. We can do things to make our games more [fun] that if you were an
`operator in Vegas you’d go to jail for, because we change the odds just for fun.”6
`36.
`In other words, social casinos are not just illegal under California law, but they
`would not be legal slot machines under any state law as they cheat players out of a legitimately
`randomized slot machine experience. Not only can players never actually win money, but their
`financial losses are maximized by deceptive gameplay tweaks that would never be allowed in a
`legitimate slot machine.
`II.
`Apple Hosts and Facilitates At Least Fifty Illegal Social Casinos.
`37.
`The Platforms, including Defendant Apple, have directly assisted in creating the
`unregulated market of virtual casino games from the outset of the industry.
`
`
`Settlements in two related cases were also preliminarily approved and are likewise set for
`5
`final approval in February 2021. Three more related cases are being litigated in Washington,
`against the owners and operators of certain social casino games. See Wilson v. PTT, LLC, 351 F.
`Supp. 3d 1325, 1337 (W.D. Wash. Dec. 14, 2018) (settled); Wilson v. Playtika, Ltd., 349 F.
`Supp. 3d 1028, 1041 (W.D. Wash. Nov. 20, 2018) (settled); Fife v. Sci. Games Corp., No. 2:18-
`CV-00565-RBL, 2018 WL 6620485, at *4 (W.D. Wash. Dec. 18, 2018) (in litigation); and
`Wilson v. Huuuge, Inc., No. 3:18-cv-05276, 2018 WL 5921019 (W.D. Wash. Nov. 13, 2018)
`(same); Benson v. Double Down Interactive, LLC, 798 F. App'x 117 (9th Cir. 2020) (same).
`6
`Gambling giant IGT buying Double Down for $500M, moving into Facebook games,
`GEEK WIRE, https://www.geekwire.com/2012/gambling-giant-igt-buying-doubledown-500m-
`moving-facebook-games/ [emphasis added].
`CLASS ACTION COMPLAINT
`
`Case No. __________________
`
`
`
`8
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`
`

`

`
`
`Case 5:21-cv-00553 Document 1 Filed 01/22/21 Page 9 of 25
`
`
`38.
`Before gaining access to these social media platforms, the Illegal Slots used
`methods like loyalty cards to track data on how much gamblers spent, how frequently they
`played, or how often they bet. The Platform partnerships upgraded their business model to an in-
`app payment system and provided additional user data which skyrocketed revenue by providing
`them with access to a whole new market of consumers.
`39.
`The core marketing for the Illegal Slots is accomplished in concert with the
`Platforms, and their systems are inextricably linked. Double Down described this very setup in a
`public filing:
`
`
`Our games are distributed through several main platform providers, including
`Apple, Facebook, Google, and Amazon, which also provide us valuable
`information and data, such as the rankings of our games. Substantially all of our
`revenue is generated by players using those platforms. Consequently, our
`expansion and prospects depend on our continued relationships with these
`providers.
`….
`
`
`We focus our marketing efforts on acquiring new players and retaining existing
`players. We acquire players both organically and through paid channels. Our paid
`marketing includes performance marketing and dynamic media buying on
`Facebook, Google, and other channels such as mobile ad networks. Underlying
`our paid marketing efforts are our data analytics that allow us to estimate the
`expected value of a player and adjust our user acquisition spend to a targeted
`payback period. Our broad capabilities in promotions allow us to tailor
`promotional activity around new releases, execute differentiated multi-channel
`campaigns, and reach players with preferred creative content.
`….
`
`
`Our player retention marketing includes advertising on Facebook as well as
`outreach through email, push notifications, and social media posts on channels
`such as Facebook, Instagram, and Pinterest. Our data and analytics also inform
`our retention marketing efforts. Campaigns are specially designed for each
`channel based upon player preferences for dimensions such as time of day and
`creative content. We consistently monitor marketing results and return on
`investment, replacing ineffective marketing tactics to optimize and improve
`channel performance.
`….
`
`
`We employ a rigorous, data-driven approach to player lifecycle management
`from user acquisition to ongoing engagement and monetization. We use
`internally-developed analytic tools to segment and target players and to
`optimize user acquisition spend across multiple channels.
`….
`
`
`CLASS ACTION COMPLAINT
`
`
`
`9
`
`Case No. __________________
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`
`

`

`
`
`Case 5:21-cv-00553 Document 1 Filed 01/22/21 Page 10 of 25
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`
`We continuously gather and analyze detailed customer play behavior and
`assess this data in relation to our judgments used for revenue recognition.7
`
`
`40.
`By moving to online platforms for marketing, distribution, and payment
`processing, Defendant Apple entered into a mutually beneficial business partnership with the
`Illegal Slots. In exchange for pushing and distributing the social casino apps and collecting
`money from consumers, Apple and the other Platforms take a 30 percent commission off of
`every in-app purchase, earning them billions in revenue.
`41.
`Prior to being published in the Apple App Store, developers must submit their app
`for review. In this process, Apple examines whether the app violates any company policies and
`demands that apps comply with all relevant laws within the jurisdiction where the app is
`available. Apps may be, and often are, removed at Apple’s discretion for violating its policies
`and can be audited at any time.
`42.
`Apple closely monitors its gambling liability by responding to the changing
`market landscape when it deems necessary. Apple likewise heavily regulates advertising in its
`system that involves gambling, stating “Gambling, gaming, and lotteries can be tricky to manage
`and tend to be one of the most regulated offerings on the App Store. Only include this
`functionality if you’ve fully vetted your legal obligations everywhere you make your app
`available and are prepared for extra time during the review process.”8
`43.
`As such, Apple, and the Platforms, through their App review process, are keenly
`aware of the illegal and deceptive nature of the Illegal Slots. Apple knew of the unlawful nature
`of the Illegal Slots and nonetheless knowingly hosted the unlawful gambling apps and promoted
`their success.
`44.
`Furthermore, on information and belief, in the wake of the Kater decision, the
`Platforms did not remove any social casinos from their offerings and conferred with each other at
`that time, jointly deciding that they would each continue to offer illegal social casino games.
`
`
`Form F-1/A Doubledown Interactive Co., Ltd., https://sec.report/Document/0001193125-
`7
`20-183157/.
`8
`App Store Review Guidelines, Apple.com, https://developer.apple.com/app-
`store/review/guidelines/#other-business-model-issues.
`10
`CLASS ACTION COMPLAINT
`
`
`Case No. __________________
`
`

`

`
`
`Case 5:21-cv-00553 Document 1 Filed 01/22/21 Page 11 of 25
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`
`
`
`# Game Title
`1 Slotomania Vegas Casino Slots
`2 Jackpot Party - Casino Slots
`3 Cashman Casino Las Vegas Slots
`
`4 DoubleDown - Casino Slots Game
`5 CashFrenzy - Slots Casino
`
`6 House of Fun: Casino Slots 777
`7 Huuuge Casino Slots Vegas 777
`
`8 Heart of Vegas Casino Slots
`9 Lightning Link Casino Slots
`
`10 POP! Slots Live Vegas Casino
`
`11 DoubleU Casino: Vegas Slots
`12 Caesars Casino: Vegas Slots
`13 Lotsa Slots - Vegas Casino
`
`A. The Illegal Slots
`Each of the following fifty social casinos offered by Apple (together the “Illegal
`45.
`Slots”) is an illegal slot machine under California law.9
`
`Figure 4 – The Illegal Slots
`Apple App Store URL
`https://apps.apple.com/US/app/id447553564?l=en
`https://apps.apple.com/US/app/id575980917?l=en
`https://apps.apple.com/US/app/id1123582513?l=e
`n
`https://apps.apple.com/US/app/id485126024?l=en
`https://apps.apple.com/US/app/id1404165333?l=e
`n
`https://apps.apple.com/US/app/id586634331?l=en
`https://apps.apple.com/US/app/id1028362533?l=e
`n
`https://apps.apple.com/US/app/id785537179?l=en
`https://apps.apple.com/US/app/id1243005112?l=e
`n
`https://apps.apple.com/US/app/id1065980436?l=e
`n
`https://apps.apple.com/US/app/id642727743?l=en
`https://apps.apple.com/US/app/id603097018?l=en
`https://apps.apple.com/US/app/id1356045010?l=e
`n
`https://apps.apple.com/US/app/id714508224?l=en
`https://apps.apple.com/US/app/id806393795?l=en
`https://apps.apple.com/US/app/id916869395?l=en
`https://apps.apple.com/US/app/id945621521?l=en
`https://apps.apple.com/US/app/id1480805172?l=e
`n
`https://apps.apple.com/US/app/id1098617974?l=e
`n
`https://apps.apple.com/US/app/id1369317521?l=e
`n
`https://apps.apple.com/US/app/id694876905?l=en
`https://apps.apple.com/US/app/id1040172229?l=e
`n
`https://apps.apple.com/US/app/id1356980152?l=e
`n
`https://apps.apple.com/US/app/id944158857?l=en
`
`14 myVEGAS Slots - Casino Slots
`15 Gold Fish Casino Slots Games
`16 Wizard of Oz: Casino Slots
`17 Quick Hit Slots - Casino Games
`18 Cash Tornado Slots - Casino
`
`19 Billionaire Casino Slots 777
`
`20 Game of Thrones Slots Casino
`
`21 Hit it Rich! Lucky Vegas Slot
`22 my KONAMI - Real Vegas Slots
`
`23 Jackpot World - Casino Slots
`
`24 Scatter Slots - Slot Machines
`
`
`For the Court’s convenience, an iPad containing Apple-based versions of the Illegal Slots
`9
`will be lodged with the Court as Exhibit 6. Upon request from Apple’s appearing counsel, a copy
`of the iPad will be produced to Apple.
`CLASS ACTION COMPLAINT
`
`
`
`11
`
`Case No. __________________
`
`

`

`
`
`Case 5:21-cv-00553 Document 1 Filed 01/22/21 Page 12 of 25
`
`
`25 Double Win Slots Casino Game
`
`26 88 Fortunes Slots Casino Games
`
`27 Wynn Slots - Las Vegas Casino
`
`28 Willy Wonka Slots Vegas Casino
`
`29 Vegas Live Slots Casino
`
`30 MONOPOLY Slots - Casino
`Games
`31 Classic Casino Slots Games
`
`32 GSN Casino: Slot Machine Games
`33 Rock N' Cash Casino Slots
`
`34 Slot Machines 777 - Slots Era
`
`35 Wild Classic Slots Casino
`
`36 Club Vegas Slots: Casino Games
`
`37 Ignite Classic Slots
`
`38 Slots - Classic Vegas Casino
`39 Cash Mania - Casino Slots
`
`40 Hot Shot Casino - Slots Games
`41 Double Hit Casino: Vegas Slots
`
`42 Huge Win Slots! Casino Games
`
`43 Winning Slots Las Vegas Casino
`
`44 High 5 Casino: Home of Slots
`45 Tycoon Casino - Vegas Slots
`
`46 Casino Games - Infinity Slots
`47 Slots DoubleDown Fort Knox
`
`48 Golden Casino – Vegas Slots
`
`49 Jackpotjoy Slots New 777 Games
`
`50 Show Me Vegas Slots Casino App
`
`https://apps.apple.com/US/app/id1382108510?l=e
`n
`https://apps.apple.com/US/app/id1091301948?l=e
`n
`https://apps.apple.com/US/app/id1323336775?l=e
`n
`https://apps.apple.com/US/app/id1074470421?l=e
`n
`https://apps.apple.com/US/app/id1304885184?l=e
`n
`https://apps.apple.com/US/app/id1215145992?l=e
`n
`https://apps.apple.com/US/app/id1116870834?l=e
`n
`https://apps.apple.com/US/app/id469231420?l=en
`https://apps.apple.com/US/app/id1143409775?l=e
`n
`https://apps.apple.com/US/app/id1133138987?l=e
`n
`https://apps.apple.com/US/app/id1135852485?l=e
`n
`https://apps.apple.com/US/app/id1201054588?l=e
`n
`https://apps.apple.com/US/app/id1256307081?l=e
`n
`https://apps.apple.com/US/app/id994102781?l=en
`https://apps.apple.com/US/app/id1518723506?l=e
`n
`https://apps.apple.com/US/app/id986110430?l=en
`https://apps.apple.com/US/app/id1016431735?l=e
`n
`https://apps.apple.com/US/app/id1247414258?l=e
`n
`https://apps.apple.com/US/app/id1330550298?l=e
`n
`https://apps.apple.com/US/app/id673354210?l=en
`https://apps.apple.com/US/app/id1437618231?l=e
`n
`https://apps.apple.com/US/app/id950710606?l=en
`https://apps.apple.com/US/app/id1334300759?l=e
`n
`https://apps.apple.com/US/app/id1216780424?l=e
`n
`https://apps.apple.com/US/app/id1355023074?l=e
`n
`https://apps.apple.com/US/app/id1172073178?l=e
`n
`
`
`
`46. Most or all of the Illegal Slots are also hosted and promoted by the other Platform
`members of the Social Casino Enterprise, Google and Facebook.
`
`CLASS ACTION COMPLAINT
`
`
`
`12
`
`Case No. __________________
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`
`

`

`
`
`Case 5:21-cv-00553 Document 1 Filed 01/22/21 Page 13 of 25
`
`
`Apple’s Facilitation, Promotion, and Control Over the Illegal Slots
`B.
`47.
`Apple, for its part, routinely facilitates the success of social casinos by counseling
`the app developers through the app launch process and providing them with resources and
`business tools necessary to maximize their success on the Apple App Store.
`48.
`The Illegal Slot companies and Apple monitor the game activity and use the
`collected data to increase user spending. This access to data is critical for the developers: Since
`all payment processing occurs through third-party platforms, the Illegal Slot companies have
`limited access to personal user data unless players login through Apple or otherwise sign up for
`loyalty programs.10
`49.
`Because the Illegal Slots depend on the spending of a small targeted audience, the
`Illegal Slot companies and Platforms work together to target and exploit high-spending users, or
`“whales,” as Illegal Slot companies like Double Down refer to their top spenders.11
`50.
`The data that the Illegal Slot companies and the Platforms collect on monetization
`necessarily contributes to the structure and success of the Social Casino Enterp

This document is available on Docket Alarm but you must sign up to view it.


Or .

Accessing this document will incur an additional charge of $.

After purchase, you can access this document again without charge.

Accept $ Charge
throbber

Still Working On It

This document is taking longer than usual to download. This can happen if we need to contact the court directly to obtain the document and their servers are running slowly.

Give it another minute or two to complete, and then try the refresh button.

throbber

A few More Minutes ... Still Working

It can take up to 5 minutes for us to download a document if the court servers are running slowly.

Thank you for your continued patience.

This document could not be displayed.

We could not find this document within its docket. Please go back to the docket page and check the link. If that does not work, go back to the docket and refresh it to pull the newest information.

Your account does not support viewing this document.

You need a Paid Account to view this document. Click here to change your account type.

Your account does not support viewing this document.

Set your membership status to view this document.

With a Docket Alarm membership, you'll get a whole lot more, including:

  • Up-to-date information for this case.
  • Email alerts whenever there is an update.
  • Full text search for other cases.
  • Get email alerts whenever a new case matches your search.

Become a Member

One Moment Please

The filing “” is large (MB) and is being downloaded.

Please refresh this page in a few minutes to see if the filing has been downloaded. The filing will also be emailed to you when the download completes.

Your document is on its way!

If you do not receive the document in five minutes, contact support at support@docketalarm.com.

Sealed Document

We are unable to display this document, it may be under a court ordered seal.

If you have proper credentials to access the file, you may proceed directly to the court's system using your government issued username and password.


Access Government Site

We are redirecting you
to a mobile optimized page.





Document Unreadable or Corrupt

Refresh this Document
Go to the Docket

We are unable to display this document.

Refresh this Document
Go to the Docket