High 5 Games Ordered to Pay $25M to Players in Washington

High 5 Games has been ordered to pay $25 million to plaintiffs accusing the company of offering illegal gambling in the state of Washington. This comes as part of a broader pushback against social casino gaming in America.

The Complaint Sought Damages

According to the class action lawsuit, which was filed by former High 5 Games customers, the operator’s online social casino offerings constituted illegal gambling, violating the state’s gambling laws. Like other social casinos, this company offered games of chance where players could stake a virtual currency.

When they ran out of digital tokens, however, players would have to buy more in order to continue playing. Even though High 5 Games’ players couldn’t actually win withdrawable money, the plaintiffs argued that they still had to pay to play, thus staking real money. Because of that, they insisted that High 5 Games’ products constituted gambling.

Since an earlier ruling had confirmed that such products were, in fact, gambling, the court eventually sided with the plaintiffs issuing a ruling that forced the operator to pay damages to the players.

High 5 Games Has to Return Millions of Dollars

The class action was filed by high-rollers who had spent huge sums on gaming. Customers across Washington had collectively lost $18 million after being enticed with multiple promotions and free chip offerings.

One of the plaintiffs claimed that he had asked High 5 Games to close his account to protect him from addiction. Instead, he was offered a promotion and invited to continue playing.  

Under the ruling, High 5 Games will have to pay $24.9 million to players in Washington. This includes the $18 million they spent, as well as almost $7 million in damages.

Edelson PC, the law firm that represented the plaintiffs, was very happy with this outcome. Todd Logan, a representative for the firm, called it a milestone and warned tech companies that this is “only the beginning.”

In the meantime, High 5 Games can still appeal the ruling.

The US Is Fighting the Social Casino Sector

As mentioned, American gaming industry stakeholders have been working hard to prevent unlicensed gaming operators from competing with the regulated market. Sweepstakes in particular seem to be in the crosshairs of regulators who wish to extinguish the vertical.

In Maryland, for example, a new bill proposed tougher regulations for violators of the state gaming laws. West Virginia is likewise ready to battle sweepstakes, preparing to take legal action against sweepstakes operators targeting the state’s residents.

So far, no state in the US has a framework that allows sweepstakes gaming. New Jersey, however, became the first US market to propose regulating and taxing social casino companies instead of fighting against them.