Zynga Online Slot Games Constitute Illegal Gambling in Washington, Class Action Alleges [UPDATE]
by Erin Shaak
Last Updated on February 15, 2023
Ferrando et al. v. Zynga, Inc.
Filed: February 24, 2022 ◆§ 2:22-cv-00214
A proposed class action claims that online casino games operated by Zynga, Inc. constitute illegal gambling under Washington state law.
February 15, 2023 – $12M Settlement Reached in Zynga Class Action
The proposed class action detailed on this page has been settled for $12 million and dismissed with prejudice by the court.
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The deal covers anyone in Washington who played Zynga’s online games on or before June 28, 2022, when preliminary approval of the settlement terms was granted. Washington residence is to be determined by a class member’s billing address, IP address, or other information supplied by the platform providers, court documents relay.
After initial settlement agreements and deadlines were delayed twice in the summer and fall of 2022, the plaintiffs filed a motion for final approval of the settlement terms on November 18 of that year. The 34-page motion explains that the parties negotiated a “classwide [sic] settlement featuring a $12 million all-cash common fund,” roughly 21 percent of the estimated $57 million in alleged damages to class members.
On December 1, U.S. District Judge Robert S. Lasnik issued a four-page order granting final approval of the settlement agreement. The order says that Zynga has agreed to create a $12 million settlement fund from which class members who file legitimate claims may be able to receive cash payments. According to the official settlement website, the deadline by which to file claims has passed.
As of January 26, 2023, the deadline for payment of the settlement claims to the fund has been extended to April 3, 2023.
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A proposed class action claims that online casino games operated by Zynga, Inc. constitute illegal gambling under Washington state law.
The 13-page lawsuit says that a number of social Zynga games, including Hit It Rich!, Black Diamond Casino, Wizard of Oz Slots, Game of Thrones Slots and Willy Wonka Slots, are “designed to encourage players to get hooked” and spend real money in order to earn more chips. According to the suit, the games are essentially online gambling, which is barred by Washington law.
The lawsuit explains that when consumers play one of Zynga’s games for the first time, they are given free sample chips that they “quickly lose.” Once a player runs out of free chips, or “coins,” they are presented with a pop-up screen that encourages them to buy more using real money, the case says. According to the complaint, players can purchase various amounts of chips for prices ranging from $2.99 to $99.99 or more and cannot continue playing the game unless they purchase more chips.
The lawsuit says Zynga’s chip offer is “substantially the same” across all of its casino games, on its mobile app and on Facebook.
Per the suit, players can bet various amounts of chips for each spin and adjust how many chips they ultimately win or lose. Zynga keeps track of each wager, outcome, win and loss for every player so they can exit the game and return to play later, the case says.
The two plaintiffs, both Washington residents, claim to have each lost more than $100 playing Zynga’s Hit It Rich! game.
The case cites a similar lawsuit for which a circuit court held that social casino game Big Fish Casino “constitutes illegal gambling under Washington law.” That case and one other were thereafter settled in a $155 million deal that provided reimbursement of some of the money gamers spent on Big Fish Casino, Jackpot Magic Slots and Epic Diamond Slots.
The lawsuit looks to represent anyone in Washington who purchased and lost chips playing Hit It Rich!, Black Diamond Casino, Game of Thrones Slots, Wizard of Oz slots, Willy Wonka Slots or another of Zynga’s social casino games.
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