Last week, a US judge officially approved a class-action settlement worth $415 million involving South Korean online gambling operator DoubleDown Interactive LLC and the UK-based multinational gambling company International Game Technology PLC (IGT). The settlement straighten out the claims that the two operators breached the state gambling legislation and consumer protection provisions of the state of Washington.
In a ruling, published at the beginning of the month, US District Judge Robert Lasnik in the federal court of Seattle described the resolution of the case as adequate, reasonable, and fair. The judge issued his final order to approve the settlement after a hearing in the case was held to conclude legal action that went on for more than four years. Apart from that, Judge Lasnik awarded legal fees of almost $121.5 million to Edelson, a Chicago-based legal firm that lead the class action in court.
The two companies faced some online customers’ allegations claiming that their social casino games constituted illegal gambling under the gambling legislation of Washington state. As mentioned above, the $415-million settlement came as the latest move in a series of related cases.
Both UK-headquartered International Game Technology and South Korea-based DoubleDown have denied any liability for the alleged violations. The companies argued that the claims that the plaintiffs had made rested on some novel and untested interpretations of the state gambling legislation.
Social Casino Games Require Real-Money Payments for Purchasing Additional Chips to Play
So-called “social casino games” are known for being free to play, but customers usually have to pay with real money for additional chips. The legal action against IGT and DoubleDown claimed that consumers wager to acquire more chips they would otherwise have to purchase. According to the plaintiffs’ claims in court, tens of thousands of class members purchased and lost chips by betting at DoubleDown Casino, with their lawyers arguing that the online casino users had the right to pursue their losses under the laws of the state of Washington.
At the time when US District Judge Robert Lasnik announced his ruling on the announced settlement, neither International Game Technology nor DoubleDown and their legal representatives immediately responded to requests for comment on the situation. The Seattle federal court judge revealed that seven class members decided to withdraw from the settlement but the agreement faced no formal objections.
Plaintiff’s lawyer Todd Logan from the legal firm leading the litigation – Edelson – confirmed that the social-casino court action overall has resulted in $651 million for class members and firm clients. Mr Logal explained that the latest settlement that was approved by the court would make sure that many class members stand to individually receive hundreds of thousands of dollars from the two companies.
In his order, Judge Lasnik described the litigation process as a “risky, novel, and hard-fought” endeavour, so he eventually approved a fee request for fees that were lower than the 25% benchmark not only in Washington but also in other states forming the 9th US Circuit Court of Appeals.
- Author
Olivia Cole
