Court Rejects Aristocrat's Appeal for Investigation into Gambling Addictions of Defendants
In a significant development, a Federal Court judge in Australia has refused Aristocrat Leisure Ltd.'s request to question class action members about their gambling habits. This decision, made in the Federal Court of Australia in Melbourne, protects the privacy and welfare of the plaintiffs, who are seeking damages worth around $155 million.
The lawsuit against Aristocrat, along with its subsidiaries Product Madness and Big Fish Games, alleges that the company breached Australia's Interactive Gambling Act 2001 by offering social casino games that simulate online casino gambling and allow real-money in-app purchases. This activity is considered unlawful gambling under Australian law.
Aristocrat had sought sensitive personal information ahead of mediation, arguing that the information about problem gambling among users was relevant to liability and damages. However, the court held that probing into mental health or medical conditions before mediation was both premature and prejudicial. The court sided with the plaintiffs' argument that the request was unfair and could prompt vulnerable members to self-diagnose their gambling behaviours.
The ruling is significant as it establishes that spending real money in virtual casino-style games, even without the chance to cash out winnings, can still amount to illegal gambling under the Interactive Gambling Act 2001. This decision mirrors a similar legal action taken against Big Fish in the US, where a class action alleged that the company's social casino apps constituted illegal gambling under state law. The US litigation culminated in a landmark settlement in 2020, with Aristocrat and its then-co-owner, Churchill Downs Inc., agreeing to pay a combined total of $155 million to resolve the claims.
The current status of the class action lawsuit in Australia is that it is ongoing, with mediation expected later this year. If mediation fails, the case will proceed to a full trial. William Roberts Lawyers, who are leading the class action on a "no-win, no-pay" basis, are funding the lawsuit with litigation financier LCM.
This decision deals a blow to Aristocrat's attempt to access sensitive personal information from individuals who spent real money on social casino apps. As no final resolution or settlement has been reported yet, the future of this high-stakes legal battle remains uncertain.
The social casino lawsuit against Aristocrat Leisure Ltd., Product Madness, and Big Fish Games continues in Australia, with the ruling dismissing Aristocrat's request to question class action members about their gambling habits. This legal case, seeking damages worth around $155 million, alleges that the company breached the Interactive Gambling Act 2001 by offering casino-style games that allow real-money in-app purchases, considered unlawful gambling under Australian law. Meanwhile, the gambling disorder legal case against Aristocrat is mirroring a similar US case, where a settlement worth $155 million was reached in 2020 following allegations that social casino apps constituted illegal gambling under state law.
