Playstudios has settled a $3 million class action lawsuit over the purchase of virtual chips in its social casino games in six states in the US.
$3M Playstudios Deal Covers Social Casino Players in Six States
The settlement covers players in Alabama, Ohio, New Jersey, Massachusetts, Tennessee and Kentucky. The lawsuit said the sale of virtual chips for real money in casino-style games broke state gambling laws.
As part of the settlement, Playstudios denied the allegations and did not admit to liability. They settled instead of continuing with litigation and running up more legal fees.
The case involves several titles from Playstudios, including myVEGAS, Pop! Slots, myKONAMI Slots, MGM Slots Live, myVEGAS Blackjack, and myVEGAS Bingo. Purchases through Facebook, Apple, Google, Amazon, and Microsoft are also included.
Eligibility is determined by the location of the players when they made their purchases and the applicable class period. Most covered periods are through June 30, 2026. The Kentucky class period is different, covering purchases from July 5, 2018 through June 29, 2023. Other states have different start dates, such as March 8, 2022, in Alabama, and January 2, 2024, in New Jersey.
Playstudios Settlement Offers Cash and Virtual Currency Awards
Under the settlement agreement, eligible players can be compensated in one of two ways. Those who do not make an election will be issued virtual currency equal to 27% of their qualifying spend. Players who want cash must file an election form by October 21. The cash benefit is worth up to 23% of eligible spending. However, the cash amount is not guaranteed. If cash elections are more than 17% of the settlement fund, individual cash payments may be reduced. The rest of the value would then be paid in virtual currency.
Cash players will be required to provide information to prove their eligibility. This includes contact details, player identification numbers or support codes, and email addresses associated with their gaming accounts.
Cash payments can be made via a few different methods, including PayPal, Venmo, Zelle or a mailed check. Players who chose the default option for virtual currency do not need to file a claim.
The settlement fund will also pay administrative expenses, attorneys’ fees and service awards to class representatives. Service awards can be up to $60,000.
Cash distributions are expected to be made within 60 days after final court approval and the conclusion of any appeals. Virtual currency awards will vest over a two-year period.
The deal comes as social casino operators face ongoing legal challenges over whether paid virtual currencies can bring casino-style games within state gambling laws.
The settlement with Playstudios does not resolve that broader legal issue. Rather, it dismisses the allegations against the company of its games and purchases in the six participating states.