After Protracted Legal Battle, High 5 Games’ Apps Ruled Illegal in Washington
Two mobile apps offered by High 5 Games, High 5 Casino and High 5 Vegas, have been officially ruled as illegal gambling under Washington state law. District Court Judge Tiffany Cartwright’s decision defines these apps as online gambling, which is strictly prohibited in Washington.
Washington's Stance on Online Gambling
The state of Washington maintains stringent laws against online gambling, classifying any platform that requires users to stake something of value on games of chance or events with a prize as illegal. This has led many gaming operators, including those that run social casinos, to steer clear of the state to avoid legal repercussions.
High 5 Games’ Defense
High 5 Games has defended its operations by claiming that its apps function with virtual coins and thus should be considered a “social casino.” These games emulate the slot machines found in physical casinos but allow interaction and competition among players in a social environment.
Judge Cartwright's Ruling
Despite the company's defense, Judge Cartwright ruled that the games offered by High 5 constituted illegal gambling under the Washington Consumer Protection Act and the Recovery of Money Lost at Gambling Act. She stated, “The undisputed material facts as to liability show that High 5’s games violate Washington’s gambling laws and the Consumer Protection Act.”
The Legal Context
This verdict arrives six years after Rick Larsen, a High 5 Games player, initially filed the lawsuit. It was argued that the apps promoted illegal gambling since players often had to purchase additional chips with real money to continue playing, especially if they wanted to play frequently.
Though High 5 pointed out that users could play for free with coins given upon registration and periodically awarded, it was noted that regular, sustained gameplay typically necessitated financial expenditures. Washington law recognizes virtual currency as a “thing of value,” even if it cannot be directly redeemed for cash, thus cementing the court’s decision against High 5.
Implications for High 5 Games
According to reports, High 5 Games has asserted that it has already taken steps to withdraw its operations from Washington state. Nevertheless, the court has held the company liable to pay damages to the plaintiffs, including Rick Larsen, with the exact amount to be determined by a jury.
Ongoing Legal Issues
This ruling is not an isolated incident for High 5 Games. Another case, Wilson vs. PTT, LLC, which also involves the company, is still active but has seen little progress since early 2023. Additionally, Judge Robert Lasnik has ruled against other online gaming companies, DoubleDown Interactive and IGT, for similarly violating Washington state gambling laws.
These companies also offer free-to-play games but allow users to purchase additional chips. Consumers often bet within the game to gain more chips, which they would otherwise need to buy, highlighting a common trend among these virtual casinos.
The outcome of these legal battles will likely continue to shape the landscape of online and social gambling in states with strict anti-gambling laws.
Moving Forward
SBC Americas has yet to receive a detailed response from High 5 Games regarding Judge Cartwright’s verdict. However, this ruling sets a significant precedent for similar future cases, emphasizing the enforcement of state gambling laws on social casino apps. For gaming operators and players in Washington, this decision underscores the state's unwavering stance against online gambling under any guise.
The final determination of damages and potential further legal developments will be closely watched by both industry insiders and legal experts, as they may influence both regulatory practices and the operations of social casino games nationwide.