Legal Ruling Against High 5 Games
After a lengthy legal battle, two mobile applications offered by High 5 Games have been ruled illegal in the state of Washington. Western Washington District Court Judge Tiffany Cartwright found that High 5 Casino and High 5 Vegas constitute online gambling, which is prohibited under Washington state law.
Washington's Definition of Online Gambling
Washington law defines online gambling as any activity that requires users to stake something of value on the outcome of a game of chance or an event with a prize on offer for a specific outcome. Many gaming operators, including those running social casinos, steer clear of operating in Washington due to these stringent definitions.
High 5 Games asserts that its apps function with virtual coins within the framework of a "social casino." However, Judge Cartwright noted that High 5’s games mimic video slot machines typically used for gambling in physical casinos. This classification led to the determination that the games fall under the illegal gambling provisions of the Washington Consumer Protection Act and the Recovery of Money Lost at Gambling Act.
The Legal Journey
The ruling comes six years after Rick Larsen, a player of High 5 Games, first filed the lawsuit. High 5 Games stood by its model, claiming that players could engage using free coins provided at registration and awarded periodically. Nonetheless, evidence showed that users could not maintain regular gameplay without purchasing additional chips with real money, which the court found to be a critical factor in the illegality ruling.
Moreover, Washington law considers virtual currency a “thing of value,” even if it cannot be redeemed for cash. This particular definition underscored the illegal nature of High 5’s operations within the state.
Company Response and Liability
High 5 Games stated it has made efforts to cease operations within Washington following the court’s ruling. Nevertheless, Judge Cartwright concluded that the company is liable for damages payable to Larsen and other plaintiffs. The exact amount of damages will be determined by a jury.
SBC Americas reached out to High 5 Games for comments on the verdict but has yet to receive a response.
Other Legal Battles in Online Gaming
High 5 Games is also entangled in another legal case, Wilson vs. PTT, LLC, which remains active but has seen little progress since early 2023. Additionally, Judge Robert Lasnik ruled that online gaming companies DoubleDown Interactive and IGT similarly violated Washington state gambling laws. The games offered by these companies, much like those of High 5 Games, are free to play but allow users to pay for additional chips. Players bet in hopes of acquiring more chips, which would otherwise need to be bought, further reinforcing the illegal gambling aspect.
Quotes and Final Thoughts
Commenting on the High 5 Games case, Judge Cartwright stated, “The undisputed material facts as to liability show that High 5’s games violate Washington’s gambling laws and the Consumer Protection Act.”
As online gaming continues to evolve, the legal landscape regarding digital betting and virtual currency remains complex. The rulings against High 5 Games and other operators highlight the ongoing scrutiny and legal challenges facing the industry, particularly in states with rigid anti-gambling laws like Washington.