Legal Battle Against High 5 Games Concludes
After a protracted legal case, two mobile apps offered by High 5 Games have been ruled illegal in Washington state.
Western Washington District Court Judge Tiffany Cartwright found that High 5 Casino and High 5 Vegas constitute online gambling, which is prohibited in the state. The ruling marks a significant development in the fight against unauthorized online gambling.
Washington’s Stance on Online Gambling
Washington classifies online gambling as any service that requires users to stake value on the outcome of a game of chance or any event that offers a prize for a certain outcome. Many gaming operators, including social ones, avoid operating in Washington to circumvent legal repercussions.
High 5 Games argued that it operates with virtual coins and positions itself as a “social casino.” Its games emulate video slot machines found in physical casinos. However, Judge Cartwright determined that High 5’s games violate the Washington Consumer Protection Act and the Recovery of Money Lost at Gambling Act.
A Long-Running Case
The verdict comes six years after High 5 Games player Rick Larsen first filed the lawsuit. The apps were found to promote illegal gambling by requiring players to purchase additional chips using real money. Although High 5 contended that players could use free coins given upon registration and awarded periodically, the court found that users cannot play consistently unless they are willing to pay.
Washington law recognizes virtual currency as a “thing of value” even if it cannot be redeemed for cash. This ruling places High 5 Games in violation of state regulations.
Impact on High 5 Games
High 5 Games has stated that it is making efforts to cease operating in Washington in light of the ruling. Judge Cartwright ruled the company liable to pay damages to Rick Larsen and other plaintiffs. The amount of damages will be determined by a jury, marking a significant financial setback for the game developer.
SBC Americas has yet to receive a response from High 5 Games regarding the verdict.
A Broader Implication
This ruling against High 5 Games is not an isolated incident. A separate case involving the company, Wilson vs. PTT, LLC, is still active but has not progressed since early 2023. Judge Robert Lasnik has previously ruled that online gaming companies, including DoubleDown Interactive and IGT, also violated Washington state gambling law.
These companies offer games that are free to play but allow users to purchase additional chips, creating a virtual gambling scenario. Consumers bet to acquire more chips, otherwise needing to buy them, which falls afoul of Washington’s stringent gambling regulations.
The Legal Precedent
Judge Tiffany Cartwright's ruling sets a significant precedent in the realm of online gambling and consumer protection in Washington state. High 5 Games' liability under both the Consumer Protection Act and the Recovery of Money Lost at Gambling Act underscores the state's rigorous stance against unauthorized online gambling activities.
The court's unambiguous statement on the matter was clear: “The undisputed material facts as to liability show that High 5’s games violate Washington’s gambling laws and the Consumer Protection Act.”
Future of Online Gambling in Washington
The implications of this ruling extend beyond High 5 Games. Other online gaming operators must now reassess their business models to ensure compliance or consider exiting the Washington market altogether. The state’s regulations regarding virtual currency and online gambling are intricate and leave little room for loopholes.
This landmark case serves as a cautionary tale for mobile game developers and online casinos looking to operate within Washington state's jurisdiction. It also empowers consumers by reinforcing the legality and fair practice standards within the gaming industry.
With the jury yet to determine the amount of damages payable by High 5 Games, this saga continues to unfold. However, one thing remains clear: Washington will continue to vigilantly enforce its laws against online gambling, ensuring consumer protection remains paramount.