Summary Statements:
After a prolonged legal battle, two mobile apps offered by High 5 Games have been declared illegal in Washington State.
Western Washington District Court Judge Tiffany Cartwright ruled that High 5 Casino and High 5 Vegas constitute online gambling, which is prohibited in the state.
Washington's Definition of Online Gambling
In Washington, online gambling is defined as anything that requires users to stake value on the outcome of a game of chance, or an event with a prize offered for a specific result. This broad definition has led many gaming operators, including social gaming platforms, to avoid operating in the state.
High 5's Defense
High 5 Games argued that their apps utilized virtual coins and functioned as a “social casino.” However, the court found that the games emulated video slot machines commonly used in physical casinos for gambling.
The Legal Findings
Judge Cartwright determined that High 5’s games are prohibited under the Washington Consumer Protection Act and the Recovery of Money Lost at Gambling Act. The verdict concludes a six-year-long lawsuit initiated by High 5 Games player, Rick Larsen, who first filed the complaint.
The court found that the apps promoted illegal gambling by requiring players to purchase additional chips using real money. High 5 Games countered by stating that players could use free coins given upon registration and periodically awarded, but the court ruled that users could not play regularly unless they were willing to pay. Washington law considers virtual currency a “thing of value” even if it cannot be redeemed for cash.
Efforts to Cease Operation
According to High 5 Games, they have made efforts to cease operating in Washington. Nonetheless, Judge Cartwright ruled that the company is liable to pay damages to Larsen and other plaintiffs, with the amount to be determined by a jury.
Ongoing Legal Issues
SBC Americas has not yet received a response from High 5 Games regarding the verdict. Meanwhile, another case involving High 5 Games, Wilson vs. PTT, LLC, remains active but has seen no progress since early 2023.
Wider Implications for the Industry
This ruling against High 5 Games is not an isolated incident. Judge Robert Lasnik previously ruled that online gaming companies DoubleDown Interactive and IGT violated Washington state gambling laws. Although these companies offer games that are free to play, users can purchase additional chips to continue playing, which the court determined also constitutes illegal gambling. Consumers bet to acquire more chips, which they would otherwise need to buy, aligning closely with the practice found illegal in High 5 Games’ offerings.
Quotes from the Verdict
In her ruling, 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.”