High 5 Games' Mobile Apps Ruled Illegal in Washington
After a protracted legal battle, two mobile applications offered by High 5 Games have been deemed illegal in Washington state. The decision, which has significant implications for the gaming industry, was handed down by Western Washington District Court Judge Tiffany Cartwright. The judge determined that High 5 Casino and High 5 Vegas constitute online gambling, which is illegal in Washington.
Definitions and Legal Context
Washington state law classifies online gambling as any activity that requires users to stake value on the outcome of a game of chance or an event with a prize on offer for a particular outcome. As a result, many gaming operators, even those operating social gaming platforms, avoid the Washington market.
High 5 Games argued that their apps operate with virtual coins and function as "social casinos." Despite this defense, the court found that the games emulate video slot machines used for gambling in physical casinos. Judge Cartwright ruled that High 5’s games are prohibited under the Washington Consumer Protection Act and the Recovery of Money Lost at Gambling Act.
The Long Road to Justice
The verdict came six years after High 5 Games player Rick Larsen first filed the suit. According to the court, the apps promoted illegal gambling by requiring players to purchase additional chips using real money. High 5 Games contended that players could use free coins given upon registration and periodically awarded, but Judge Cartwright found that users could not play with 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.
High 5 Games has stated they have made efforts to cease operating in Washington. Nevertheless, Judge Cartwright ruled the company is liable to pay damages to Larsen and other plaintiffs. The amount of damages is yet to be determined and will be decided by a jury.
Industry-Wide Implications
The case against High 5 Games is not an isolated incident. A separate case involving High 5 Games, Wilson vs. PTT, LLC, remains active but has not seen progress since early 2023. In another significant ruling, Judge Robert Lasnik found that online gaming companies DoubleDown Interactive and International Game Technology (IGT) also violated Washington state gambling law. These companies offered games that were free to play but allowed users to pay for additional chips. Consumers could then bet to acquire more chips, which they otherwise would need to buy.
"The undisputed material facts as to liability show that High 5’s games violate Washington’s gambling laws and the Consumer Protection Act," Judge Cartwright stated in her ruling. The rulings against High 5 Games, DoubleDown Interactive, and IGT signal a robust stance by Washington state against online gambling practices, particularly those masked under the guise of social gaming.
Looking Ahead
SBC Americas has reached out to High 5 Games for a statement on the verdict but has not yet received a response. As the gaming industry continues to evolve, the decisions of courts like those in Washington will undoubtedly play a significant role in shaping the future landscape. Companies operating in the online and social gaming space must closely monitor these developments to ensure compliance with state laws and avoid costly legal battles.
In the meantime, the case against High 5 Games will proceed as the jury determines the amount of damages to be awarded to Larsen and other plaintiffs. The outcome of this phase will be watched closely by industry insiders, as it may set a precedent for similar lawsuits in the future.
The gaming community and legal experts alike will be paying close attention to how these rulings impact the operations of mobile and social gaming applications not just in Washington, but potentially across other states with stringent gambling laws. The emphasis on virtual currency as a "thing of value" could also prompt a reevaluation of business models for companies in this sector.