DoubleDown Interactive LLC and International Game Technology PLC (IGT) have agreed to pay $415 million in a class-action settlement, which has been approved by a U.S. District Judge. The settlement resolves allegations that the companies violated Washington state law by operating illegal gambling games.
The lawsuit was filed in 2018 by Cheryl Kater, a Washington resident who claimed that DoubleDown’s online casino games violated state law because they involved “illegal gambling.” Kater argued that the games were “games of chance” and that players could win or lose money based on the outcome of the game.
The lawsuit was later joined by other plaintiffs, and the case was certified as a class action. The plaintiffs alleged that DoubleDown and IGT violated Washington state law by operating illegal gambling games and that they had engaged in deceptive practices to lure players into playing the games.
Under the terms of the settlement, DoubleDown and IGT will pay $155 million to the plaintiffs, with an additional $260 million to be paid to the state of Washington. The companies have also agreed to make changes to their business practices, including implementing measures to prevent underage gambling and providing more information to players about the odds of winning.
In a statement, DoubleDown and IGT said that they were pleased to have reached a settlement in the case. “We believe that this settlement is in the best interests of our company and our shareholders,” the statement read. “We remain committed to providing our customers with high-quality, entertaining games that comply with all applicable laws and regulations.”
The settlement is one of the largest ever in a class-action lawsuit involving online gambling. It is also a significant victory for regulators who have been cracking down on illegal online gambling in recent years.
In Washington state, online gambling is illegal, but there is no specific law that addresses social casino games like those offered by DoubleDown. However, the state’s gambling commission has taken the position that such games are illegal because they involve “something of value” (i.e., virtual chips) and the possibility of winning or losing that value.
The settlement is a reminder that companies operating in the online gambling space need to be aware of the laws and regulations in the jurisdictions where they operate. It also highlights the importance of transparency and responsible gambling practices in the industry.
In conclusion, the $415 million settlement between DoubleDown Interactive LLC and International Game Technology PLC (IGT) is a significant victory for regulators and a reminder to companies operating in the online gambling space to be aware of the laws and regulations in the jurisdictions where they operate. The settlement also highlights the importance of transparency and responsible gambling practices in the industry.
