Attorneys from Edelson PC, a Chicago-based plaintiffs' firm that specializes in class-action litigation against tech companies, represented several consumers in lawsuits against the operators of "social casinos" — online apps that replicate slot machines and other casino games.

According to the suits, each of the apps give new users a certain number of free chips with which to play the games. The games give users the chance of winning additional chips. However, users must purchase chips to continue playing once their initial allotment runs out.

While users do not officially have the option of cashing out chips from the apps, the suit against Churchill Downs pointed to the existence of an online black market where users could buy and sell chips from each other.

The complaints cited academic research saying that about 58% of "disordered gamblers who were seeking treatment" were introduced to gambling through social casino games.

According to the suits, the mobile apps had violated Wash. Rev. Code Ann. § 4.24.070, a law which requires the dealer or proprietor of an illegal gambling outfit to return all money to the losing player.

Edelson's three class actions resulted in nearly $200 million in total settlements: $155 million from the Churchill Downs litigation, $38 million from the Playtika litigation and $6.5 million from Huuuge Inc.

In each of the cases, the firm moved for attorney fees equaling 25% of the common fund, or $49,875,000 in total.

Judge Lasnik granted Edelson's motions Feb. 11, saying that "class counsel performed exceptional work and achieved an exceptional result for the class."

He further noted that the firm's requests for 25% of the common funds were supported by the fact that contingency fees in similar "high-stakes, high-value mass litigation" typically hover around 30-40%.