High 5 Games Ruled Illegal in Washington
In a significant ruling, two popular mobile applications offered by High 5 Games have been declared illegal in the state of Washington after a protracted legal battle. Western Washington District Court Judge Tiffany Cartwright determined that High 5 Casino and High 5 Vegas constitute illegal online gambling under state law.
Washington's Online Gambling Law
Washington State classifies online gambling as any activity that necessitates users to stake something of value on the outcome of a game of chance or an event where a prize is offered for achieving a certain outcome. This broad definition has made many gaming operators, including those providing social gaming experiences, wary of operating within state boundaries.
Judge Cartwright found that High 5 Casino and High 5 Vegas fell squarely within this definition. Despite High 5 Games' contention that it operates using virtual coins and is therefore a “social casino,” the judge was unmoved. High 5’s games, which emulate video slot machines found in physical casinos, were ruled to be illegal under both the Washington Consumer Protection Act and the Recovery of Money Lost at Gambling Act.
Prolonged Legal Battle
This ruling comes after six years of legal wrangling, initiated by High 5 Games player Rick Larsen, who first filed the suit. The case hinged on the requirement for players to purchase additional chips with real money in order to continue playing, effectively promoting illegal gambling. High 5 Games argued that players can also use free coins given upon registration and periodically awarded, but the court found that users could not engage with the apps with any regularity unless they were willing to pay.
Washington law recognizes virtual currency as a "thing of value," even if it cannot be redeemed for cash, further strengthening the case against High 5 Games.
High 5 Games' Response
High 5 Games has stated that it has made efforts to cease operations in Washington. However, this did not absolve the company from liability. Judge Cartwright ruled that High 5 Games is liable to pay damages to Larsen and other plaintiffs involved in the suit. The amount of damages will be determined by a jury in a subsequent proceeding.
SBC Americas has reached out to High 5 Games for a comment on the verdict, but at the time of writing, no response has been received.
Ongoing Legal Concerns
This case is not the only legal challenge facing High 5 Games. A separate case, Wilson vs. PTT, LLC, involving High 5 Games is still active but has seen no progress since early 2023. Meanwhile, Judge Robert Lasnik has issued a ruling that online gaming companies DoubleDown Interactive and IGT have also violated Washington state gambling laws. Much like High 5 Games, DoubleDown Interactive and IGT offer games that are free to play but allow users to pay for additional chips. Consumers then wager these chips to acquire more, creating a problematic cycle reminiscent of traditional gambling.
Expert Opinions
Experts in law and gaming have pointed out that Washington's broad interpretation of gambling laws serves as a cautionary tale for other gaming operators. As one legal analyst put it, "The undisputed material facts as to liability show that High 5’s games violate Washington’s gambling laws and the Consumer Protection Act." This ruling underscores the state's firm stance against anything resembling online gambling, even in its "social" forms.
Conclusion
While High 5 Games has indicated a willingness to comply with Washington's stringent laws, the financial repercussions of this legal battle may serve as a warning to other gaming companies operating in or considering expansion into states with strict gambling regulations. The implications of this case could reverberate through the industry, forcing many to reevaluate their strategies and legal standings.