throbber
Case 5:21-cv-02461 Document 1 Filed 04/06/21 Page 1 of 23
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`DANIEL L. WARSHAW (Bar No. 185365)
` dwarshaw@pswlaw.com
`PEARSON, SIMON & WARSHAW, LLP
`15165 Ventura Boulevard, Suite 400
`Sherman Oaks, California 91403
`Telephone: (818) 788-8300
`Facsimile: (818) 788-8104
`
`HASSAN A. ZAVAREEI (Bar No. 181547)
` hzavareei@tzlegal.com
`TYCKO & ZAVAREEI LLP
`1828 L Street NW, Suite 1000
`Washington, D.C. 20036
`Telephone: (202) 973-0900
`Facsimile: (202) 973-0950
`
`Attorneys for Plaintiffs and the Proposed Class
`
`[Additional counsel appears on signature page]
`
`
`UNITED STATES DISTRICT COURT
`NORTHERN DISTRICT OF CALIFORNIA, SAN FRANCISCO DIVISION
`
` CASE NO.
`
`CLASS ACTION COMPLAINT
`
`DEMAND FOR JURY TRIAL
`
`
`
`JOSHUA MCDONALD and MICHAEL
`HELSEL, on behalf of themselves and all
`others similarly situated,
`
`
`Plaintiffs,
`
`
`v.
`
`APPLE INC., a California corporation,
`
`
`
`
`
`Defendant.
`
`
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`Case 5:21-cv-02461 Document 1 Filed 04/06/21 Page 2 of 23
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`Plaintiff Joshua McDonald (“Plaintiff McDonald”) and Michael Helsel (“Plaintiff Helsel”)
`(together, “Plaintiffs”), individually and on behalf of all persons similarly situated, and through their
`attorneys of record, allege the following against Apple Inc. (“Apple” or “Defendant”), based upon
`personal knowledge with respect to themselves, on information and belief derived from
`investigation of counsel, and review of public documents as to all other matters.
`INTRODUCTION
`1.
`This is a class action arising from Apple’s profiting from illegal gambling games
`developed by DoubleU Games Co., Ltd. (“DoubleU”) and offered, sold, and distributed by Apple
`through its App Store for consumers to download and play. Apple offers, sells, and distributes
`casino-style slot machines, casino-style table games, and other common gambling games to
`consumers through its App Store, which, for the reasons set forth herein, constitutes illegal gambling
`pursuant to the law of various states.
`
`PARTIES
`2.
`Plaintiff McDonald is an adult citizen and resident of the state of Oregon.
`3.
`Plaintiff Helsel is an adult citizen and resident of the state of Alabama.
`4.
`Apple Inc. is a California corporation with its principal place of business in
`Cupertino, California.
`
`JURISDICTION AND VENUE
`5.
`This Court has subject matter jurisdiction pursuant to the Class Action Fairness Act
`of 2005 (“CAFA”), 28 U.S.C. § 1332(d). The amount in controversy exceeds the sum of $5,000,000
`exclusive of interest and costs, there are more than 100 putative class members, and minimal
`diversity exists because putative class members are citizens of a different state than Defendant.
`6.
`This Court has personal jurisdiction over Defendant because it is authorized to and
`regularly conducts business in California and its principal place of business is in California.
`7.
`Venue is proper in this District under 28 U.S.C. § 1391(b)(2) because Defendant
`resides in this District and a substantial part of the events or omissions giving rise to Plaintiffs’
`claims occurred in this District.
`/ / /
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`Case 5:21-cv-02461 Document 1 Filed 04/06/21 Page 3 of 23
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`FACTUAL ALLEGATIONS
`8.
`Apple designs, manufactures, and markets smartphones, personal computers, tablets,
`wearables and accessories, and sells a variety of related services.
`9.
`As part of the related services that it sells, Apple operates various platforms,
`including its App Store. The App Store is a digital distribution platform, developed and maintained
`by Apple, for mobile applications (“Apps”) on its iOS & iPadOS operating systems. The App Store
`allows consumers to browse and download Apps developed with Apple’s iOS Software
`Development Kit. Apps can be downloaded on the iPhone smartphone, the iPod Touch handheld
`computer, or the iPad tablet computer, and some can be transferred to the Apple Watch smartwatch
`or to 4th-generation or newer Apple TVs as extensions of iPhone Apps.
`10.
`The Apps sold and delivered by Apple through the App Store are developed by third
`parties (i.e., developers). As of October 2020, the App Store features around 1.96 million Apps
`available for download.1
`11.
`Developers and Apple have several options for monetizing an App, including the
`“Freemium Model,” which is utilized by Apple and Apps developed by DoubleU that are the subject
`of this lawsuit.2 Under the Freemium Model, consumers can download the App for free (i.e., “free-
`to-play” Apps), but consumers are then offered optional additional in-app features that require
`payments (i.e., “in-app purchases”).3
`12.
`Apple provides in-app payment processing services to iPhone app developers,
`including DoubleU, and consumers through the App Store.4
`13.
`Apple consumers who want to purchase an App or make in-app purchases through
`the App Store must pay money directly to Apple, which provides the payment interface. Apple
`consumers must create an Apple ID and register a valid method of payment to make payments to
`
`
`1 See https://www.statista.com/statistics/276623/number-of-apps-available-in-leading-app-stores/
`(last visited March 22, 2021).
`2 See https://developer.apple.com/app-store/business-models/ (last visited March 22, 2021);
`https://support.apple.com/en-us/HT202023 (last visited March 22, 2021).
`3 Id.
`4 https://www.cnbc.com/2020/07/22/apple-defends-app-stores-30percent-cut-ahead-of-tim-cook-
`testimony.html (last visited March 22, 2021) (hereinafter “CNBC”).
`3
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`Apple for any purchases made through the App Store (including in-app purchases).5
`14.
`Likewise, Apple mandates that App developers who offer and distribute their Apps
`in the App Store must process all payments for Apps and in-app purchases through Apple.6 Apple
`takes a commission of up to 30% of all revenue generated by sales of Apps in its App Store and in-
`app purchases made on Apps obtained through the App Store.7 Apple characterizes the commission
`as a fee for distribution of the App and the cost of running the App Store. The developer receives
`the remaining 70%.8
`15.
`The Apps referenced herein could not be downloaded by Apple consumers, and
`Apple consumers would not be able to make in-app purchases, without Apple’s offering and
`distributing of the Apps (and selling of coins through in-app purchases) through the App Store.
`16.
`Apple also provides marketing guidance, tools, promotional offers, and more to help
`drive discovery of Apps and in-app purchases.9 For example, Apple features select Apps on the
`App Store.10
`17. When considering apps to feature, Apple’s editors look for high-quality apps across
`all categories, with a particular focus on new apps and apps with significant updates. There is no
`paid placement or checklist of requirements for apps the App Store features.11
`18.
`“[O]n average, the Apple App Store drives 50% of all app installs. Of that, roughly
`21% of installs come from users who discover and install apps through browsing the featured apps
`or sifting through app categories.”12
`
`
`5 See https://support.apple.com/en-us/HT202631 (last visited March 22, 2021).
`6 Damien Geradin and Dimitrios Katsifis, The Antitrust Case Against the Apple App Store (April
`22, 2020), at 13, available at https://papers.ssrn.com/sol3/papers.cfm?abstract id=3583029 (last
`visited March 22, 2021) (hereinafter “Geradin and Katsifis”); see also
`https://developer.apple.com/in-app-purchase/ (last visited March 22, 2021).
`7 See https://www.cnbc.com/2020/11/18/apple-will-cut-app-store-fees-by-half-to-15percent-for-
`small-developers.html (last visited March 22, 2021).
`8 Geradin and Katsifis at 18-19, supra note 3.
`9 See https://developer.apple.com/app-store/promote/ (last visited March 22, 2021).
`10 Id.
`11 https://developer.apple.com/app-store/discoverability/ (last visited March 22, 2021).
`12 See https://www.storemaven.com/ios-12-and-app-store-
`personalization/?trafficSource=newsletter&cmpn=ios12updates (last visited March 22, 2021).
`4
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`19.
`Apple is also responsible, in part, for the creation or development of its Apps. Apple
`encourages App developers to incorporate Apple’s “cutting-edge Apple technologies” into their
`Apps “to create useful and engaging user experiences.”13 For example, Apple urges developers to
`“[i]ntegrate with Siri to let users can get things done [sic] using just their voice, use Apple Pay to
`sell a variety of items directly from within your app, enable your apps to store app data in iCloud,
`and much more.”14 Apple contributes materially to the illegality of the casino-style apps referenced
`herein by engaging in the foregoing conduct with DoubleU.
`Casino-Style Apps Offered Through the App Store
`20.
`Apple permits and facilitates illegal gambling by operating as an unlicensed casino.
`21.
`Apple sells, offers, and distributes several free-to-play casino-style games (i.e., slot
`machines and casino-style table games) developed by DoubleU through the App Store for
`consumers to download and play, including, but not limited to, DoubleU Casino, Take 5 Slots, Hello
`Vegas Slots, and DoubleU Bingo (collectively, the “DoubleU Casino Apps”).
`22. When a consumer downloads and initially opens the DoubleU Casino Apps, the
`consumer is given free “coins” or “chips” to start with, e.g., 100,000 or 1,000,000 to play the game.
`The DoubleU Casino Apps work essentially like a casino slot machine or other Las Vegas-style
`games like blackjack, roulette, poker, keno, bingo, and other card and gambling games. A loss
`results in a loss of coins or chips, but the consumer has an opportunity to win additional coins or
`chips. Ultimately, the consumer will run out of coins or chips and will be prompted to use real
`money to purchase additional coins or chips for the chance to continue playing the game.
`23.
`Consumers do not have the ability to collect actual cash as a result of “winning”
`games, but they do have the ability to win and therefore acquire more playing time.
`24.
`Paying money in a game for a chance to win more playing time violates the anti-
`gambling laws of the twenty-five states that are at issue in this case. See Ala. Code § 13A-12-20
`(Alabama); Ark. Code Ann. § 16-118-103 (Arkansas); Conn. Gen. Stat. § 53-278a (Connecticut);
`OCGA § 16-12-20 (Georgia); 720 ILCS 5/28-1 (Illinois); IC §35-45-5-1 (Indiana); KRS 528.101
`
`
`13 https://developer.apple.com/programs/ (last visited March 22, 2021).
`14 Id.
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`(Kansas); Mass. Gen. Laws ch. 137, § 1 (Massachusetts); MN ST § 609.75 (Minnesota); MS ST §
`87-1-5 (Mississippi); Mo. Rev. Stat. § 572.010 (Missouri); MT Code § 23-5-112(14) (Montana);
`N.H. Rev. Stat. § 647.2 (New Hampshire); N.J. Stat. § 2C:37-1 (New Jersey); N.M. Stat. § 30-19-1
`(New Mexico); N.Y. Penal L. 225.00 (New York); Ohio Rev. Code § 2915.01 (Ohio); Or. Rev. Stat.
`§ 167.117 (Oregon); S.C. Code § 32-1-10 (South Carolina); S.D. Codified Laws § 22-25A (South
`Dakota); Tenn. Code § 39-17-501 (Tennessee); 13 V.S.A. § 2141 (Vermont); Va. Code § 18.2-325
`(Virginia); Wash. Rev. Code § 9.46.010 (Washington); W. Va. Code §61-10-5 (West Virginia).
`25.
`In 2019, people in the United States lost approximately $3.5 billion playing “free-to-
`play” Apps like the DoubleU Casino Apps.15 Despite the fact these DoubleU Casino Apps do not
`offer an opportunity to win real money or prizes, the money spent by consumers to purchase
`additional coins or chips to continue playing the Apps can lead to devastating consequences for
`those who get addicted. 16
`26.
`A study analyzing “free-to-play” casino-style Apps stated:
`
`[Researchers] found that [free-to-play] casino gamers share many similar
`sociodemographic characteristics (e.g., employment, education, income) with online
`gamblers. Given these similarities, it is perhaps not surprising that a strong predictor
`of online gambling is engagement in [free-to-play] casino games. Putting a dark line
`under these findings, over half (58.3%) of disordered gamblers who were seeking
`treatment stated that social casino games were their first experiences with gambling.
`. . .
`
`According to [another study], the purchase of virtual credits or virtual items makes
`the activity of [free-to-play] casino gaming more similar to gambling. Thus, micro-
`transactions17 may be a crucial predictor in the migration to online gambling, as these
`players have now crossed a line by paying to engage in these activities. Although,
`[sic] only 1–5% of [free-to-play] casino gamers make micro-transactions, those who
`purchase virtual credits spend an average of $78. Despite the limited numbers of
`social casino gamers purchasing virtual credits, revenues from micro-transactions
`account for 60% of all [free-to-play] casino gaming revenue. Thus, a significant
`
`15 https://www.king5.com/article/life/wellness/social-casino-free-to-play-gambling-addiction-
`help/281-e79beef2-9ca6-4d9d-9e92-b99042f1d1cc (last visited March 22, 2021) (hereinafter,
`“King5”).
`16 Id.
`17 “Microtransactions, often abbreviated as MTX, are a business model where users can purchase
`virtual goods with micropayments. Microtransactions are often used in free-to-play games to
`provide a revenue source for the developers.” See https://en.wikipedia.org/wiki/Microtransaction
`(last visited March 22, 2021).
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`amount of revenue is based on players’ desire to purchase virtual credits above and
`beyond what is provided to the player in seed credits.18
`27. Most of the revenue earned from these casino-style Apps (i.e., 80-90%) is made from
`a small portion (i.e., about 3%) of their players, who are specifically targeted because of the large
`amounts they will spend.19
`28.
`Nate Halverson, a journalist with Reveal from the Center for Investigative Reporting
`
`said:
`
`They’re using artificial intelligence to target those specific players who, like [a
`woman] I reported on will spend $400,000. She didn’t have $400,000.
`
`In a regular casino, they would have seen that she didn't have the income to be
`spending $400k. Further, she asked them nearly a dozen times to cut her off, told
`them she had a problem, that she couldn’t stop spending. And what did they do?
`They just gave her free chips and encouraged her to keep spending. That wouldn't
`happen in a real casino. This is a wild west; this is a lawless land.20
`
`29.
`Governments across the world have acted to limit the availability of micro-
`transaction-based games of chance (like the DoubleU Casino Apps) due to their similarity to games
`of chance found in actual casinos.21 Regrettably, such games have avoided regulation in the United
`States, resulting in thousands of consumers spending millions of dollars to become addicted to these
`unlawful games that they downloaded from the App Store, while Apple earns a substantial profit.
`30.
`Since Apple is responsible, in part, for the creation or development of the DoubleU
`Casino Apps and provides the sole means by which DoubleU Casino Apps developers can offer,
`
`
`18 Hyoun S. Kim, Michael J. A. Wohl, et al., Do Social Casino Gamers Migrate to Online
`Gambling? An Assessment of Migration Rate and Potential Predictors, Journal of gambling
`studies / co-sponsored by the National Council on Problem Gambling and Institute for the Study
`of Gambling and Commercial Gaming (Nov. 14, 2014), available at
`http://link.springer.com/content/pdf/10.1007%2Fs10899-014-9511-0.pdf (citations omitted).
`19 King5, supra note 15.
`20 Id.
`21 In late August 2014, South Korea began regulating “social gambling” games, including games
`similar to the DoubleU Casino Apps, by “ban[ning] all financial transactions directed” to the
`games. PokerNews.com, Korea Shuts Down All Facebook Games In Attempt To Regulate Social
`Gambling | PokerNews, https://www.pokernews.com/news/2014/09/korea-shuts-down-facebook-
`games-19204.html (last visited March 22, 2019). Similarly, “the Maltese Lotteries and Gambling
`Authority (LGA) invited the national Parliament to regulate all digital games with prizes by the
`end of 2014.” Id.
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`distribute, and sell their DoubleU Casino Apps to Apple consumers (i.e., through the App Store),
`Apple functions as an information content provider for the subject DoubleU Casino Apps.
`31.
`Accordingly, Apple actively enables, permits, promotes, and profits from illegal
`gambling.
`
`The History of Civil Remedy Statutes for Recovery of Gambling Losses
`32.
`Purportedly, “[i]n the seventeenth and eighteenth centur[ies], gambling among the
`British gentry was rampant.”22 Problems were created for England’s land-based aristocracy because
`of large transfers of wealth or property related to gambling. This problem apparently led the English
`in 1710 to adopt “[a]n Act for the better preventing of excessive and deceitful gaming,” 9 Anne, ch.
`14 (1710), which is known as the Statute of Anne (named after Britain’s then reigning Queen).23
`33.
`“England’s Statute of Anne…provided for a recovery action by the losing gambler,
`or any other person on the gambler’s behalf, for gambling debts already paid.”24 It stated, in
`pertinent part, that:
`[A]ny Person . . . who shall . . . by playing at Cards, Dice, Tables, or other Game or
`Games whatsoever, or by betting on the Sides or Hands of such as do play any of the
`Games aforesaid, lose to any . . . Person . . . so playing or betting in the whole, the
`Sum or Value of ten Pounds, and shall pay or deliver the same or any Part thereof,
`the Person . . . losing and paying or delivering the same, shall be at Liberty within
`three Months then next, to sue for and recover the Money or Goods so lost, and paid
`or delivered or any Part thereof, from the respective Winner . . . thereof, with Costs
`of Suit, by Action of Debt . . . .25
`34.
`The twenty-five states at issue here – Alabama, Arkansas, Connecticut, Georgia,
`Illinois, Indiana, Kentucky, Massachusetts, Minnesota, Mississippi, Missouri, Montana, New
`Hampshire, New Jersey, New Mexico, New York, Ohio, Oregon, South Carolina, South Dakota,
`
`
`22 Ronald J. Rychlak, The Introduction of Casino Gambling: Public Policy and the Law, 64 Miss.
`L.J. 291, 296 n.32 (1995).
`23 State of Tennessee Office of the Attorney General, Applicability of Statute of Anne Provisions
`Regarding Gambling, Opinion No. 04-046 (March 18, 2004), available at
`https://www.tn.gov/content/dam/tn/attorneygeneral/documents/ops/2004/op04-046.pdf (last
`visited March 22, 2021).
`24 Joseph Kelly, Caught in the Intersection Between Public Policy and Practicality: A Survey of
`the Legal Treatment of Gambling-Related Obligations in the United States, 5 Chap. L. Rev. 87
`(2002).
`25 An Act for the Better Preventing of Excessive and Deceitful Gaming, 1710, 9 Ann. c. 14, § 2
`(Eng.).
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`Tennessee, Vermont, Virginia, Washington, and West Virginia – have enacted civil remedy statutes
`designed to curtail excessive gambling losses based on legal principals adopted from the Statute of
`Anne.
`
`35.
`These states have similar statutes that prohibit profiting from unlawful gambling
`activity and provide a statutory civil cause of action to recover money paid and lost due to gambling:
`Ala. Code § 8-1-150; Ark. Code Ann. § 16-118-103; Conn. Gen. Stat. § 52-554; OCGA § 13-8-3;
`720 ILCS 5/28-8; IC 34-16-1-2; KRS 372.020; Mass. Gen. Laws ch. 137, § 1; MN ST § 541.20;
`MS ST § 87-1-5; Mo. Rev. Stat. § 434.030; MT Code § 23-5-131; N.H. Rev. Stat. § 338:3; N.J. Stat.
`§ 2A:40-5; N.M. Stat. § 44-5-1; N.Y. Gen. Oblig. Law §§ 5-419, 5-421; Ohio Rev. Code § 3763.02;
`Or. Rev. Stat. § 30.740; S.C. Code § 32-1-10; S.D. Codified Laws § 21-6-1; Tenn. Code § 28-3-
`106; 9 V.S.A. § 3981; Va. Code § 11-15; Wash. Rev. Code § 4.24.070; and W. Va. Code § 55-9-3
`(“Civil Remedy Statutes for Recovery of Gambling Losses”).
`Facts Specific to Plaintiff McDonald
`36.
`On or about February 23, 2018, Plaintiff McDonald downloaded one of the DoubleU
`Casino Apps, “DoubleU Casino: Vegas Slots,” on his iPhone from the App Store. Plaintiff
`McDonald initially played the DoubleU Casino App for free, but eventually purchased coins through
`in-app purchases (paid directly to Apple) so he could continue playing. On February 23, 2018,
`Plaintiff McDonald made a coin purchase in the amount $4.99.
`37.
`Accordingly, Plaintiff McDonald, on behalf of himself and all others similarly
`situated, seeks to recover money paid and lost due to gambling on the DoubleU Casino App pursuant
`to state law, as set forth herein.
`
`Facts Specific to Plaintiff Helsel
`38.
`On July 24, 2014, Plaintiff Helsel downloaded one of the DoubleU Casino Apps,
`“DoubleU Casino: Vegas Slots,” on his iPhone from the App Store. Plaintiff Helsel initially played
`the DoubleU Casino App for free, but eventually purchased coins through in-app purchases (paid
`directly to Apple) so he could continue playing. In the past six months alone, Plaintiff Helsel made
`five (5) separate coin purchases, each in the amount of $107.99. His most recent coin purchase was
`made on March 5, 2021 in the amount of $42.12.
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`39.
`Accordingly, Plaintiff Helsel, on behalf of himself and all others similarly situated,
`seeks to recover money paid and lost due to gambling on the DoubleU Casino App pursuant to state
`law, as set forth herein.
`
`
`
`CLASS ACTION ALLEGATIONS
`40.
`Pursuant to the provisions of Rules 23(a), (b)(2), and (b)(3) of the Federal Rules of
`Civil Procedure, Plaintiffs bring this action on behalf of themselves and the following Multistate
`Class and State Classes (collectively “Class”):
`Multistate Class:
`All persons who paid money to Apple for coins to wager on the DoubleU Casino
`Apps and reside in Alabama, Arkansas, Connecticut, Georgia, Illinois, Indiana,
`Kentucky, Massachusetts, Minnesota, Mississippi, Missouri, Montana, New
`Hampshire, New Jersey, New Mexico, New York, Ohio, Oregon, South Carolina,
`South Dakota, Tennessee, Vermont, Virginia, Washington, and West Virginia.
`
`Alabama State Class:
`
`All persons who paid money to Apple for coins to wager on the DoubleU Casino
`Apps and reside in Alabama.
`Arkansas State Class:
`
`All persons who paid money to Apple for coins to wager on the DoubleU Casino
`Apps and reside in Arkansas.
`Connecticut State Class:
`
`All persons who paid money to Apple for coins to wager on the DoubleU Casino
`Apps and reside in Connecticut.
`Georgia State Class:
`
`All persons who paid money to Apple for coins to wager on the DoubleU Casino
`Apps and reside in Georgia.
`Illinois State Class:
`
`All persons who paid money to Apple for coins to wager on the DoubleU Casino
`Apps and reside in Illinois.
`Indiana State Class:
`
`All persons who paid money to Apple for coins to wager on the DoubleU Casino
`Apps and reside in Indiana.
`
`/ / /
`
`951192.2
`
`
`
`10
`CLASS ACTION COMPLAINT
`
`1 2 3 4 5 6 7 8 9
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`

`

`Case 5:21-cv-02461 Document 1 Filed 04/06/21 Page 11 of 23
`
`Kentucky State Class:
`
`All persons who paid money to Apple for coins to wager on the DoubleU Casino
`Apps and reside in Kentucky.
`Massachusetts State Class:
`
`All persons who paid money to Apple for coins to wager on the DoubleU Casino
`Apps and reside in Massachusetts.
`Minnesota State Class:
`
`All persons who paid money to Apple for coins to wager on the DoubleU Casino
`Apps and reside in Minnesota.
`Mississippi State Class:
`All persons who paid money to Apple for coins to wager on the DoubleU Casino
`Apps and reside in Mississippi.
`Montana State Class:
`
`All persons who paid money to Apple for coins to wager on the DoubleU Casino
`Apps and reside in Montana.
`New Hampshire State Class:
`
`All persons who paid money to Apple for coins to wager on the DoubleU Casino
`Apps and reside in New Hampshire.
`New Jersey State Class:
`
`All persons who paid money to Apple for coins to wager on the DoubleU Casino
`Apps and reside in New Jersey.
`New Mexico State Class:
`
`All persons who paid money to Apple for coins to wager on the DoubleU Casino
`Apps and reside in New Mexico.
`New York State Class:
`
`All persons who paid money to Apple for coins to wager on the DoubleU Casino
`Apps and reside in New York.
`Ohio State Class:
`
`All persons who paid money to Apple for coins to wager on the DoubleU Casino
`Apps and reside in Ohio.
`Oregon State Class:
`
`All persons who paid money to Apple for coins to wager on the DoubleU Casino
`Apps and reside in Oregon.
`
`
`
`
`
`1 2 3 4 5 6 7 8 9
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`
`951192.2
`
`
`
`11
`CLASS ACTION COMPLAINT
`
`

`

`Case 5:21-cv-02461 Document 1 Filed 04/06/21 Page 12 of 23
`
`
`
`South Carolina State Class:
`
`All persons who paid money to Apple for coins to wager on the DoubleU Casino
`Apps and reside in South Carolina.
`South Dakota State Class:
`
`All persons who paid money to Apple for coins to wager on the DoubleU Casino
`Apps and reside in South Dakota.
`Tennessee State Class:
`
`All persons who paid money to Apple for coins to wager on the DoubleU Casino
`Apps and reside in Tennessee.
`
`Vermont State Class:
`
`All persons who paid money to Apple for coins to wager on the DoubleU Casino
`Apps and reside in Vermont.
`Virginia State Class:
`
`All persons who paid money to Apple for coins to wager on the DoubleU Casino
`Apps and reside in Virginia.
`Washington State Class:
`
`All persons who paid money to Apple for coins to wager on the DoubleU Casino
`Apps and reside in Washington.
`West Virginia State Class:
`
`All persons who paid money to Apple for coins to wager on the DoubleU Casino
`Apps and reside in West Virginia.
`
`41.
`legal
`its officers, directors,
`the Class are DoubleU and
`Excluded from
`representatives, successors, subsidiaries, and assigns; Apple itself, any entity in which Apple has
`controlling interests, and Apple’s officers, directors, legal representatives, successors, subsidiaries,
`and assigns; and any judicial officer presiding over this matter, members of their immediate family,
`members of their judicial staff, and any judge sitting in the presiding court system who may hear an
`appeal of any judgment entered.
`42.
`Certification of Plaintiffs’ claims for classwide treatment is appropriate because
`Plaintiffs can prove the elements of their claims on a classwide basis using the same evidence as
`would be used to prove those elements in individual actions asserting the same claims.
`
`951192.2
`
`
`
`12
`CLASS ACTION COMPLAINT
`
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`Case 5:21-cv-02461 Document 1 Filed 04/06/21 Page 13 of 23
`
`
`
`43.
`This action has been brought and may be properly maintained on behalf of the
`Multistate and/or State Classes proposed herein under Rule 23 of the Federal Rule of Civil Procedure
`and satisfies the numerosity, commonality, typicality, adequacy, predominance, and superiority
`requirements of its provisions.
`44.
`Plaintiffs reserve the right to amend the Multistate and State Class definitions based
`on information learned through discovery.
`Numerosity. Fed. R. Civ. P. 23(a)(1). Consistent with Rule 23(a)(1), the members
`45.
`of the Class are so numerous and geographically dispersed that the joinder of all members is
`impractical. While the exact number of class members is unknown to Plaintiffs at this time, there
`are millions of reviews for some Apps, suggesting that at least hundreds of thousands of people have
`downloaded and played the subject DoubleU Casino Apps. The members of the Class can be readily
`identified through Apple’s records.
`Commonality and Predominance. Fed. R. Civ. P. 23(a)(2) and (b)(3). This action
`46.
`involves common questions of law and fact that predominate over any questions affecting individual
`Class members. The common questions include, but are not limited to:
`a.
`Whether Defendant engaged in the conduct alleged herein;
`b.
`Whether these virtually identical DoubleU Casino Apps offered and distributed by
`Apple for download and for sale of in-app purchases through Defendant’s App Store violate the
`Civil Remedy Statutes for Recovery of Gambling Losses;
`c.
`Whether gambling for additional playtime constitutes a thing of value under the Civil
`Remedy Statutes for Recovery of Gambling Losses;
`d.
`Whether Defendant violated the Civil Remedy Statutes for Recovery of Gambling
`Losses through its active participation in the promotion and sale of in-app purchases through the
`App Store;
`e.
`Whether Plaintiffs and the Class members are entitled to recover the money they lost
`on the DoubleU Casino Apps under the Civil Remedy Statutes for Recovery of Gambling Losses;
`f.
`Whether Defendant has been unjustly enriched under applicable state laws; and
`g.
`Such other common factual and legal issues as are apparent from the allegations and
`
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`951192.2
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`CLASS ACTION COMPLAINT
`
`

`

`Case 5:21-cv-02461 Document 1 Filed 04/06/21 Page 14 of 23
`
`
`
`causes of action asserted in the Complaint.
`Typicality. Fed. R. Civ. P. 23(a)(3). Plaintiffs’ claims are typical of other Class
`47.
`members’ claims because Plaintiffs and Class members were subjected to the same allegedly
`unlawful conduct and damaged in the same way, i.e., they all lost money to Apple in an effort to
`win additional playtime on the DoubleU Casino Apps.
`Adequacy. Fed. R. Civ. P. 23(a)(4). Consistent with Rule 23(a)(4), Plaintiffs will
`48.
`fairly and adequately represent the Class. Plaintiffs have the best interests of the members of the
`Class in mind. Plaintiffs have no conflicts of interest with the Class. Plaintiffs’ counsel are
`competent and experienced in litigating class actions, including extensive experience in consumer
`protection claims. Plaintiffs intend to vigorously prosecute this case.
`Superiority. Fed. R. Civ. P. 23(b)(3). A class action is superior to other available
`49.
`methods for the fair and efficient adjudication of these claims because individual joinder of the
`claims of all members of the Class is impracticable. Many members of the Class are without the
`financial resources necessary to pursue this matter. Even if some could afford to litigate claims
`separately, such a result would be unduly burdensome to the courts in which the individualized cases
`would proceed. Individual litigation increases the time and expense of resolving a common dispute
`concerning Defendant’s actions toward an entire group of individuals. Class action procedures
`allow for far fewer management difficulties in matters of this type and provide the unique benefits
`of unitary adjudication, economies of scale, and comprehensive supervision over the entire
`controversy by a single judge in a single court.
`50.
`The Class may be certified pursuant to Rule 23(b)(2) of the Federal Rules of Civil
`Procedure because Defendant has acted on grounds general

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