High 5 Games has been ordered to pay nearly $25 million in damages as part of a class action lawsuit filed in Washington state tied to its sweepstakes casino business model. The court case stretches back to 2014 when Washington resident and plaintiff, Rick Larsen, started playing on High 5 Casino on Facebook.
High 5 Games Is Classified As An Illegal Gambling Operator In Washington State
Under Washington state law, gambling is defined as risking something of value on a game of chance. The lawsuit maintained that even though the digital chips used in these games held no direct monetary value, they were still valuable to players because the chips extended the gaming experience.
High 5 Games had structured its sweepstakes casino operations around the practice of selling virtual chips that allowed for continued gameplay without providing any avenue for real-money payouts. Court documents alleged that High 5 engaged in a revenue model constituting gambling.
Despite the Evergreen State’s strict anti-gambling laws, this online game via Facebook required payment for chips to participate in the game of chance. Larsen also wasn’t the only player to lose money on this game in Washington, and the class sued successfully.
Plaintiffs argued that while the user could not withdraw real money from their wins, they needed to expend real money to acquire virtual money for continuing games.
Players In Washington State Had Lost More Than $17.7 million In Total On The Game
U.S. District Judge Tiffany M. Cartwright agreed with the plaintiffs that had sued High 5 Games, asserting that the High 5 Casino and High 5 Vegas apps were illegal in Washington.
However, a jury trial was held a couple of weeks ago to decide the extent of the damages.
Through betting slips or payment receipts, it was determined that players from Washington state had lost more than $17.7 million in total on the game. This figure must now be repaid by High 5 Games, along with an extra $7.2 million in damage claims under Washington’s Consumer Protection Act.
Courts in Washington and other states already have ruled in the past that casino-style games with in-app purchases can be considered gambling under their respective state laws.