Playstudios settles $3 million virtual chips class action in six US states

Playstudios has agreed to a $3 million class action settlement over paid virtual chips in its social casino games, covering players in Alabama, Ohio, New Jersey, Massachusetts, Tennessee and Kentucky. For PSPs and payment partners, the useful part is not the headline number but the structure: cash, virtual currency, and a claims process tied to how and where players paid.

1. The lawsuit said Playstudios’ sale of virtual chips for real money in casino-style games broke state gambling laws. Playstudios denied the allegations and did not admit liability, settling instead of continuing the litigation and adding more legal fees.
2. The case covers several Playstudios titles, including myVEGAS, Pop! Slots, myKONAMI Slots, MGM Slots Live, myVEGAS Blackjack, and myVEGAS Bingo. Purchases made through Facebook, Apple, Google, Amazon, and Microsoft are also included.
3. Eligibility depends on where players were located when they made the purchases and on the applicable class period. Most covered periods run through June 30, 2026. Kentucky is different, with a class period from July 5, 2018 through June 29, 2023. Other states have different start dates, including March 8, 2022 in Alabama and January 2, 2024 in New Jersey.
4. Eligible players can receive either cash or virtual currency. Players who do nothing will receive virtual currency equal to 27% of their qualifying spend. Those who want cash must file an election form by October 21, and the cash benefit is worth up to 23% of eligible spending.
5. The cash option is not fully fixed. If cash elections exceed 17% of the settlement fund, individual cash payments may be reduced, with the balance paid in virtual currency. Cash claimants must provide contact details, player identification numbers or support codes, and email addresses linked to their gaming accounts. Payments can be made via PayPal, Venmo, Zelle, or mailed check.

The settlement fund will also cover administrative expenses, attorneys’ fees, and service awards to class representatives, with service awards of up to $60,000. Cash distributions are expected within 60 days after final court approval and the end of any appeals, while virtual currency awards will vest over a two-year period.

For social casino operators and their payment stack, the bigger point is that this settlement does not settle the wider legal question. The fight over whether paid virtual currencies can pull casino-style games under state gambling laws is still there; Playstudios just bought its way out of this one.