Lawsuit Against Amazon
Online gaming platforms and social casinos are facing more scrutiny with a few major lawsuits announced recently concerning these types of gaming options. Attorneys have unveiled a new legal action in Washington State involving Amazon’s platform offering these types of games.
The suit alleges that Amazon has received billions of dollars by offering these platforms and engaging in an “illegal internet gambling enterprise,” according to the lawsuit.
“We look forward to trying this case to a jury of Amazon’s peers,” attorney Todd Logan told Reuters. Logan is with Chicago’s Edelson PC law firm, which has won large awards in several similar suits for millions of dollars against “social casinos” in recent years. Amazon hasn’t commented on the lawsuit.
Growing Trend in Mobile Gaming
These types of options have become much more popular in recent years with some of the largest gaming companies expanding with major investments in social casinos in recent years. The platforms are free to play and players use virtual coins to play slots or compete in other games. With mobile gaming extremely popular, players can easily download a game and play in their free time. Sweepstakes casinos are also very popular and available for 40+ states.
While the games are free and there are no real winnings that players can collect for “winning” on the platforms, players can purchase additional virtual coins to keep playing as seen in other mobile games. The plaintiffs and their attorneys in the new lawsuit argue that the difference is indistinguishable and actually illegal in Washington.
“By moving their casino games directly onto the phones and computers of players, and by leveraging an innocuous-sounding ‘free-to-play’ model, social casino companies, along with defendant Amazon, have found a way to smuggle slot machines into the homes of consumers throughout the United States, 24 hours a day, seven days a week, and 365 days a year,” the lawsuit notes.
The location of the lawsuit may be critical to the case. Social casino apps have been ruled illegal in recent years, the suit notes.
“The complaint cites a 2018 U.S. appeals court ruling that found ‘social casino’ apps to be illegal under Washington state gambling law,” Reuters reports. “The case is the latest in Washington federal court targeting online slot machines and other games.”
Attorneys allege that despite knowing that the games are illegal in the state, “Amazon continues to maintain a 30% financial interest in the upside by brokering the slot machine games, driving customers to them, and acting as the bank.”
Gaming companies argue that not being able to win any real money makes these platforms much different than real-money online casinos. They argue that players know that going in and that they are considerably different from real online casinos.
Major Additions Planned for Ohio Casino
In other gaming news, Penn Entertainment announced some big plans for the Hollywood Casino Columbus on Monday. The property was to host a groundbreaking ceremony for a new hotel on Tuesday.
“We are thrilled to soon begin construction on a new, state-of-the-art hotel at Hollywood Casino Columbus,” Penn CEO and President Jay Snowden said. “Since opening in 2012, our Columbus property has experienced tremendous growth, and the addition of a hotel … will create a true regional destination.”
The $100 million project includes a 180-room hotel, meeting space, an additional restaurant, and more. Penn is also planning local partnerships and amenities that will be announced later. The new spaces will be attached to the existing property and add hundreds of construction jobs and approximately 100 new permanent jobs upon opening, the company notes.
“We are elated to be celebrating this day with our team members, supporters, and key stakeholders,” Hollywood Vice President Rick Skinner said. “We can’t wait to begin hiring new team members and welcoming more visitors from around the region to showcase our new hotel and the excitement of Hollywood Casino Columbus.”
Hollywood Columbus currently features a 160,000-square foot gaming facility with 1,700 slot machines, 70 table games, a retail sportsbook, and the largest poker room in central Ohio. Gamblers will also find numerous restaurant and cocktail options along with 16,000 square feet of multi-purpose banquet and event space.
This isn’t the only expansion coming to Penn properties across the country. The new hotel is part of a previously-announced plan consisting of four new growth projects that include new land-based casinos in Aurora and Joliet, Illinois. The city of Aurora is providing $50 million in funding for the project.
An additional hotel tower is also planned in Henderson, Nevada, at the M Resort. That project is estimated to cost more than $200 million. Gaming and Leisure Properties, Inc. has committed up to $575 million toward the overall $850 million budget for all four growth projects.
