Court Denies Aristocrat’s Request to Probe Plaintiffs’ Gambling Disorders
A Australian federal judge denied the gaming behemoth Aristocrat Leisure Ltd.'s request to ask class-action members if they suffer from a gambling illness, stating that doing so would encourage "self-diagnosis" and provide incorrect results.
The Federal Court of Australia in Melbourne rendered a ruling this week that strikes down Aristocrat's attempt to obtain private information from people who have paid real money to play social casino applications.
Gambling without a license?
The Australian gambling behemoth and its subsidiaries, Product Madness and Big Fish Games, are accused in the class action of violating the Interactive Gambling Act 2001. The plaintiffs contend that users can spend real money through in-app purchases on the company's social casino apps, which mimic online casino games. In Australia, playing at online casinos is prohibited.
The lawsuit targets Australians who, between December 22, 2017, and December 12, 2024, paid real money for in-app purchases in social casino games like Heart of Vegas, Big Fish Casino, and Epic Diamond Slots.
Plaintiffs claimed the request was "unfair" and might lead "vulnerable members to self-diagnose" their gaming practices, according to a Lawyerly report from last month. The court agreed, pointing out that requiring participants to disclose any gambling addictions before to mediation may put them under undue pressure and jeopardize the process.
Aristocrat asserted that since knowledge of problem gambling among users could influence legal outcomes, the information was pertinent to liability and damages. However, the court ruled that it was premature and discriminatory to look into medical or mental health issues prior to mediation.
William Roberts Lawyers is leading the class action on a "no-win, no-pay" basis, with funding provided by litigation financier LCM.
Later this year, mediation is anticipated. If it doesn't work, a full trial will be held.
Fried Big Fish
Similar legal action against Big Fish in the United States is echoed in this instance. In that instance, the company's social casino apps were accused of being unlawful gambling under state law in a class action lawsuit brought in the state of Washington.
Aristocrat and Churchill Downs Inc., its co-owner at the time, agreed to pay a total of $155 million to settle the claims in a historic settlement reached in 2020.
Notably, the judgment found that using real money to play virtual casino-style games may still be considered illegal gambling even if there was no way to cash out profits.
