Settlement in Class Action Gambling Lawsuit Against Zynga

Overview

Zynga quickly settled a class-action lawsuit (discussed previously) alleging that its online games were illegal gambling under Washington law. This was one of many such lawsuits filed post-Kater.

Settlement

This agreement in principle (still requires formal court approval) comes less than three months from the filing of the complaint and establishes a $12 million settlement fund for the class members. As a reminder, Churchill Downs and Aristocrat settled their case for nine figures. We can probably expect to see similar settlements from game companies that operated these virtual casino-type games in Washington.