Summary of Legal Ruling on High 5 Games in Washington
In a notable legal decision, two mobile applications provided by High 5 Games have been declared illegal in the state of Washington. The protracted six-year legal case culminated in a ruling by Western Washington District Court Judge Tiffany Cartwright, who determined that High 5 Casino and High 5 Vegas constitute illegal online gambling activities under state law.
Classification of Online Gambling in Washington
According to Washington state law, online gambling is defined as any activity where users are required to stake value on the outcome of a game of chance or event that offers a prize for achieving a certain result. This broad definition includes many forms of digital gaming, leading numerous gaming operators, even those offering social games, to avoid doing business in the state.
High 5 Games’ Defense
High 5 Games defended its operations by arguing that its platforms utilize virtual coins and function as “social casinos.” Additionally, the company highlighted that its games simulate video slot machines commonly found in physical casinos. However, Judge Cartwright rejected this argument, citing that the virtual coins, even if they cannot be redeemed for cash, are recognized as a "thing of value" under Washington law.
Legal Findings Against High 5 Games
Judge Cartwright determined that the High 5 apps facilitate illegal gambling because they require players to purchase additional chips using real money. While High 5 Games allows players to use free coins provided during registration and periodically thereafter, it was found that continuous play is largely contingent on making purchases. This practice was deemed in violation of the Washington Consumer Protection Act and the Recovery of Money Lost at Gambling Act.
Impact on Players and Washington State Law
The case was initiated by Rick Larsen, a High 5 Games player, six years ago. The ruling mandates High 5 Games to pay damages to Larsen and other plaintiffs involved in the suit. The exact amount of damages is yet to be determined and will be decided by a jury. This decision reinforces Washington's stringent stance on online gambling and highlights the state's broader implications for digital gaming operators.
Ongoing and Related Cases
High 5 Games has indicated that it has taken measures to cease operations within Washington in compliance with the court's ruling. Despite this, other cases involving High 5 Games remain active. Notably, the case Wilson vs. PTT, LLC is still unresolved, showing no significant progress since early 2023.
Furthermore, Judge Robert Lasnik ruled against online gaming companies DoubleDown Interactive and IGT in a separate but relevant case. The judgment found these entities guilty of similar violations of Washington state gambling law, as their games enabled players to play for free but promoted the purchase of additional chips to continue betting. This ruling underscores the consistent application of Washington's gambling laws across multiple cases.
Looking Forward
The series of legal decisions emphasize the comprehensive and strict interpretation of online gambling laws in Washington. Gaming operators must navigate these regulations carefully to avoid violating the law. The judgments serve as crucial precedents, signaling to other gaming companies the risks involved in operating within the state.
SBC Americas has reached out to High 5 Games for comments regarding the ruling but has not received a response at this time. The outcome of these cases will be closely monitored by the gaming industry, legal experts, and regulatory bodies to understand their long-term implications on the mobile gaming landscape.
Quotes
"The undisputed material facts as to liability show that High 5’s games violate Washington’s gambling laws and the Consumer Protection Act," stated Judge Tiffany Cartwright in her ruling, succinctly summarizing the court's stance on the matter.