Summary of Legal Ruling on High 5 Games
The conclusion of a lengthy legal battle has led to a ruling that two mobile apps offered by High 5 Games are illegal in Washington state. Western Washington District Court Judge Tiffany Cartwright found that High 5 Casino and High 5 Vegas constitute online gambling, an activity prohibited within the state's boundaries.
Washington State's Definition of Online Gambling
According to Washington state law, online gambling is defined as any platform that requires users to stake value on the outcome of a game of chance or any event with a prize offered for a specific outcome. Due to this stringent regulation, many gaming operators, even those involved in social gaming, avoid conducting business in Washington.
High 5’s Argument vs. Court’s Verdict
High 5 Games had contended that their operations involved virtual coins and were more akin to a “social casino.” However, the court found that the games offered by High 5 closely emulate video slot machines used in physical casinos for gambling purposes. As a result, Judge Cartwright determined that High 5 Games had violated both the Washington Consumer Protection Act and the Recovery of Money Lost at Gambling Act.
A Lengthy Legal Battle
The legal struggle began six years ago when High 5 Games player Rick Larsen first filed the complaint. The core of the argument was that the apps promoted illegal gambling by requiring players to purchase additional chips using real money. Although High 5 Games countered by stating that players could use free coins provided upon registration and periodically awarded during play, it was established that users couldn’t play with regularity unless they were willing to spend money.
Virtual Currency Recognized as “Thing of Value”
Under Washington law, virtual currency is recognized as a “thing of value,” even though it cannot be directly redeemed for cash. Given this recognition, the court ruled that High 5 Games is liable to pay damages to Larsen and other plaintiffs, with the exact amount of these damages set to be determined by a jury.
High 5 Games’ Response and Future Implications
High 5 Games has indicated that they have taken steps to cease operating within the state of Washington. Despite this, Judge Cartwright's ruling places significant financial repercussions on the company as they await the jury's decision on the damages owed. SBC Americas has reached out to High 5 Games for a comment on the verdict but has yet to receive a response.
Other Legal Cases in Progress
This case involving High 5 Games is not an isolated incident. A separate, ongoing case titled Wilson vs. PTT, LLC, which involves the same company, has shown little progress since early 2023. Furthermore, another legal ruling by Judge Robert Lasnik determined that online gaming companies DoubleDown Interactive and IGT violated Washington state gambling law as well. Like High 5 Games, these companies offer free-to-play games but allow users to pay for additional chips, which can then be used to place bets within the game.
Conclusion
The ruling against High 5 Games by Judge Tiffany Cartwright is a landmark case that underscores Washington state's stringent stance on online gambling. It also sets a precedent for other gaming operators who might consider entering the Washington market. For High 5 Games, the ruling not only means immediate financial liability but also serves as a cautionary tale for other companies operating within or planning to enter jurisdictions with similarly strict gambling laws.
Quotes
As Judge Cartwright succinctly 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 statement reinforces the seriousness of the violation and the rules governing online gambling in Washington.