Playstudios Agrees to $3 Million Settlement of Virtual Chips Class Action in Six States

Playstudios has settled a $3 million class action lawsuit alleging that sales of virtual chips for its social casino games violated state gambling laws. The agreement covers players in Alabama, Ohio, New Jersey, Massachusetts, Tennessee and Kentucky. Playstudios denied the allegations and admitted no liability, electing to resolve the matter to limit further legal costs.

The lawsuit targeted purchases made in several titles, including myVEGAS, Pop! Slots, myKONAMI Slots, MGM Slots Live, myVEGAS Blackjack and myVEGAS Bingo. Transactions through Facebook, Apple, Google, Amazon and Microsoft fall within scope. Eligibility turns on player location at time of purchase and defined class periods, according to reporting by GamblingNews.

Settlement Scope and Class Periods

Most class periods run through June 30, 2026. Kentucky covers purchases from July 5, 2018 through June 29, 2023. Alabama begins March 8, 2022. New Jersey opens January 2, 2024. The remaining states follow the primary June 30, 2026 cutoff. These dates fix the window of qualifying transactions without resolving the underlying debate over virtual currency and gambling statutes.

Compensation Structure and Claims Process

Eligible players receive virtual currency equal to 27% of qualifying spend unless they elect cash. Cash claims require a form submitted by October 21 and pay up to 23% of eligible spending. If cash elections surpass 17% of the settlement fund, payments face pro rata reduction with remainder issued in virtual currency. Claimants must supply contact details, player identification numbers or support codes, and account email addresses.

Cash distributions occur via PayPal, Venmo, Zelle or mailed check. Virtual currency vests over two years. The fund additionally covers administrative expenses, attorneys’ fees and service awards to class representatives of up to $60,000. Cash payments follow within 60 days of final court approval.

This resolution ends the specific claims against Playstudios but leaves the larger question of virtual chip legality untouched. Social casino operators continue to face parallel challenges that test the boundary between paid virtual items and regulated gambling.

Reporting: GamblingNews

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