Summary Statements:
After a long legal battle, two mobile apps from High 5 Games have been declared illegal in Washington.
Legal Ruling on High 5 Games
Western Washington District Court Judge Tiffany Cartwright ruled that High 5 Casino and High 5 Vegas count as online gambling, which is illegal in the state. Washington defines online gambling as any activity where users stake something of value on the outcome of a game of chance or an event with a prize associated with a specific outcome.
High 5's Defense and Court's Counter
High 5 Games argued that their apps operate with virtual coins in a "social casino" setting. The games mimic video slot machines found in physical casinos, which was a point of contention in the case. Cartwright ruled that the High 5 games fall under the Washington Consumer Protection Act and the Recovery of Money Lost at Gambling Act.
Background of the Case
The court's decision comes six years after High 5 Games player Rick Larsen filed the original lawsuit. The apps were found to promote illegal gambling by requiring players to purchase additional chips with real money. While High 5 claimed that players could use free coins given at registration and periodically through gameplay, regular play was difficult without making purchases.
According to Washington law, virtual currency is considered a "thing of value" even if it cannot be redeemed for cash, which played a key role in the court's decision. High 5 Games stated that it has made efforts to stop operating in Washington.
Legal Implications and Damages
Judge Cartwright ruled that High 5 Games must pay damages to Rick Larsen and other plaintiffs, with the amount to be determined by a jury. As of now, SBC Americas has not received a response from High 5 Games regarding the verdict.
Broader Context in Washington
High 5 Games is not alone in facing legal issues in Washington. Another ongoing case involving High 5 Games is Wilson vs. PTT, LLC, which has yet to progress significantly since early 2023. In a related matter, Judge Robert Lasnik found that online gaming companies 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. Players essentially bet to acquire more chips, which would otherwise need to be bought.
Quotes
Judge Cartwright highlighted the violation, stating, “The undisputed material facts as to liability show that High 5’s games violate Washington’s gambling laws and the Consumer Protection Act.” This firmly places High 5's activities in conflict with state regulations, reinforcing the importance of adherence to local laws in digital gaming operations.
Conclusion
This ruling sets a significant precedent in Washington, emphasizing the strict stance the state takes on online gambling. Gaming operators, even those offering "social" games, must carefully evaluate their business models to comply with local laws. For High 5 Games, this ruling represents a pivotal moment that could influence similar cases in the future and drive further scrutiny of the online gaming industry.