Summary Statements:
After a protracted legal case, two mobile apps offered by High 5 Games have been ruled illegal in Washington.
Western Washington District Court Judge Tiffany Cartwright found that High 5 Casino and High 5 Vegas constitute online gambling, which is illegal in the state.
Washington’s Strict Stance on Online Gambling
Washington classifies online gambling as anything that requires users to stake value on the outcome of a game of chance or an event with a prize on offer for a certain outcome. Many gaming operators, even social ones, avoid operating in Washington due to these stringent regulations. High 5 Games contended that it operates with virtual coins and is a “social casino.” However, the nature of High 5’s games, which emulate video slot machines found in physical casinos, ultimately led to their downfall in the court’s eyes.
Judge Cartwright determined that High 5 games fall under the prohibitions outlined in the Washington Consumer Protection Act and the Recovery of Money Lost at Gambling Act. This verdict comes six years after Rick Larsen, a player of High 5 Games, first filed the suit.
The Mechanics of High 5’s Games
The apps in question promoted illegal gambling by requiring players to purchase additional chips using real money. High 5 Games argued that players could use free coins awarded upon registration and periodically thereafter. However, the court found that users could not play with regularity unless they were willing to pay. Importantly, Washington law recognizes virtual currency as a “thing of value” even if it cannot be redeemed for cash. This interpretation was key in the court’s decision.
Liability and Damages
Judge Cartwright’s ruling leaves High 5 Games liable to pay damages to Rick Larsen and other plaintiffs. The exact amount of these damages will be determined by a jury. As of now, SBC Americas has not received a response from High 5 Games regarding the verdict.
Ongoing Legal Battles
High 5 Games is not alone in its legal struggles. A separate case involving High 5 Games, Wilson vs. PTT, LLC, is still active but has not made progress since early 2023. Additionally, Judge Robert Lasnik ruled that online gaming companies DoubleDown Interactive and IGT also violated Washington state gambling law. The games offered by these companies are free to play, but users can pay for additional chips, thereby engaging in what is considered illegal gambling under state law.
Consumers bet to acquire more chips, which they would otherwise need to buy, making these games similar in nature to those offered by High 5 Games.
Final Thoughts
“The undisputed material facts as to liability show that High 5’s games violate Washington’s gambling laws and the Consumer Protection Act,” said Judge Cartwright. The verdict sets a significant precedent in the realm of online gaming and gambling, particularly for apps that integrate virtual currency systems akin to those used in physical gambling establishments.
In summary, the ruling against High 5 Games underscores Washington’s uncompromising stance on online gambling and its commitment to enforcing the law. As gaming companies navigate these legal challenges, they must be mindful of the regulations and interpretations that can vary significantly between states.