Amazon has agreed to a proposed class action settlement that could allow US consumers to pursue $201 million from developers of social casino apps distributed through the company’s Appstore.
The agreement was submitted to the US District Court for the Western District of Washington on July 9 and remains subject to judicial approval. It would resolve a lawsuit brought against Amazon in 2023 by Nevada resident Steven Horn.
However, the arrangement does not require Amazon to pay $201 million directly to consumers or deposit the money into a settlement fund.
Instead, the court would enter a $201 million covenant judgment against Amazon. The company would then transfer its rights to seek reimbursement from the third-party app developers to members of the class. In exchange, the consumers would agree not to enforce the judgment against Amazon itself.
Any money subsequently recovered from the developers would be distributed among eligible class members.
The $201 million figure represents approximately 30% of the affected users’ spending on the social casino apps. According to Reuters, the calculation was based on Amazon’s transaction records for in-app purchases made by class members.
The original complaint accused Amazon of helping to operate an illegal gambling enterprise by distributing social casino games, processing payments and receiving a share of users’ purchases. More than 30 apps were identified in the litigation.
Social casino games are generally free to download and do not offer withdrawable cash prizes. Players can nevertheless spend real money on virtual chips or coins used to continue playing casino-style games. Once purchased, those virtual items cannot normally be exchanged back into cash.
Horn’s lawsuit argued that the virtual chips still constituted something of value under Washington gambling law because they allowed users to continue playing. It also alleged that Amazon was more than a passive distributor because it handled transactions and benefited financially from in-app spending.
Amazon disputed the claims and denied wrongdoing. The company previously argued that federal law protected it from liability for content and products created by third-party developers.
During the case, the court ordered Amazon to provide additional information relating to the apps and its knowledge of user behaviour. A March 2025 court order required the company to produce material relevant to allegations that vulnerable consumers were being targeted to maximise revenue.
Under the settlement, Amazon will retain the ability to remove apps from its marketplace and require developers to introduce changes intended to improve the customer experience. It said apps offered through its store must comply with applicable legislation.
The plaintiff’s lawyers described the agreement as another stage in a wider legal campaign against social casino operators and the technology platforms that distribute their products. They said earlier settlements involving game developers had returned more than $650 million to consumers in Washington and elsewhere in the US.
One of the largest previous cases resulted in International Game Technology and DoubleDown Interactive agreeing to a $415 million settlement over virtual casino games. That litigation similarly centred on whether purchasable virtual chips qualified as a thing of value under Washington law.
Separate cases involving social casino products are continuing against Apple, Google and Meta. Those companies have also denied liability, maintaining that they provide technology platforms rather than operate the games themselves.