Mobile Apps by High 5 Games Ruled Illegal in Washington
After a lengthy legal battle, two mobile apps offered by High 5 Games have been declared illegal in Washington state. Judge Tiffany Cartwright of the Western Washington District Court found that High 5 Casino and High 5 Vegas constitute online gambling, which is against the law in Washington.
Definition of Online Gambling in Washington
Washington state defines 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 offered for a specific outcome. As a result, many gaming operators, including those offering social games, steer clear of operations in Washington due to its stringent laws.
High 5 Games argued that it operates with virtual coins and positions itself as a “social casino.” However, Judge Cartwright determined that the games offered by High 5 are an emulation of video slot machines found in physical casinos and thus fall under the definition of gambling according to state law.
Legislation Violated
The court ruled that High 5’s games are in violation of the Washington Consumer Protection Act and the Recovery of Money Lost at Gambling Act. This decision comes after a six-year-long legal process initiated by High 5 Games player Rick Larsen.
Judge Cartwright emphasized that the apps promoted illegal gambling by requiring players to purchase additional chips using real money. High 5 Games countered this by stating that players receive free coins upon registration and at periodic intervals, allowing them to play without spending money. However, it was noted that users cannot engage in regular play unless they are willing to make purchases.
Virtual Currency as a “Thing of Value”
Under Washington state law, virtual currency is recognized as a “thing of value” even if it cannot be redeemed for cash. This classification played a crucial role in the ruling against High 5 Games. The company has since stated that it is making efforts to cease operations within Washington.
Judge Cartwright’s decision includes holding the company liable for damages to Rick Larsen and other plaintiffs. The exact amount of damages will be determined by a jury.
Awaiting High 5 Games' Response
SBC Americas has reached out to High 5 Games for a response to the verdict but has not yet received a reply. The repercussions of this ruling could have significant impacts on the company, given the precedence it sets within the gaming industry.
Other Legal Actions
In a related case, Wilson vs. PTT, LLC, involving High 5 Games, there has been no progress since early 2023. Judge Robert Lasnik has ruled 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 for continued play, which Judge Lasnik determined falls under the definition of online gambling.
Conclusion
The legal landscape for online gaming in Washington remains challenging. The state’s strict regulations classify virtual currency as a “thing of value,” making it difficult for social gaming companies to operate within its borders without running afoul of gambling laws. With the verdict against High 5 Games now in place, other gaming operators will likely review their operations in Washington to ensure compliance with state laws.
The gaming industry will undoubtedly watch closely as the jury determines the amount of damages High 5 Games will be required to pay. The outcome of similar ongoing cases, including Wilson vs. PTT, LLC, may further shape the future of online gaming in Washington and beyond.