A Washington woman, Janna Shudde, has filed a class action lawsuit against Dream Games Teknoloji Anonim Şirket, a Turkish developer known for its popular mobile app Royal Match. The lawsuit was filed Aug. 8 in the U.S. District Court for the Western District of Washington and alleges that the game violates state gambling laws.
State Violations and Psychological Impact
The lawsuit alleges that the developer, based in Istanbul and raising $255 million in 2022, intentionally designed the game to be as addictive as possible. Shudde claims the game manipulates the odds of success by enticing players to purchase virtual gold coins to continue playing.
According to the claims, once the coins are purchased, the game reduces the chances of winning by forcing players to quickly spend the resources they have purchased. This leads to excessive spending, as happened to Schudde herself, who lost more than $900 on Royal Match earlier this year. In her opinion, this model of play falls under the definition of illegal gambling under Washington state law.
Schudde argues that the game, which asks players to “destroy obstacles and combine powerful bonuses to complete levels,” perfectly meets the definition of gambling, since players are risking their virtual coins, which can be purchased with real money, to gain extra lives and turns.
In addition, the lawsuit states that the game, advertised as free, actually forces players to spend money on in-game purchases that can cost hundreds or even thousands of dollars. Such players, known in the gaming industry as “whales,” account for the bulk of the company’s revenue, which, as of May 2024, was $3 billion.
Comparison with Kater v. Churchill Downs Inc.
Schüdde cites the 2018 case Kater v. Churchill Downs Inc., which ruled the mobile game Big Fish Casino an illegal gambling experience under Washington state law. In that case, the court ruled that the game’s virtual chips had “value” because they extended the time a player could play the game. Schüdde hopes to achieve a similar result by representing other U.S. players who lost money at Royal Match and want to join the lawsuit alleging fraud, negligence, unjust enrichment, and violation of the Washington Consumer Protection Act.
Schüdde is seeking class-action certification, as well as damages, reimbursement of expenses, and a jury trial.
In related news, a class-action lawsuit against DraftKings over “misleading” low-risk bets was dismissed last week. In June, a Georgia man filed a class action lawsuit against Virtual Gaming Worlds and its subsidiaries, alleging that their marketing efforts intentionally misled users into thinking their platforms were legitimate and purely for entertainment purposes.