Judicial Ruling Declares High 5 Games Illegal in Washington
After a protracted legal battle, two mobile applications offered by High 5 Games have been officially ruled illegal in the state of Washington. Western Washington District Court Judge Tiffany Cartwright concluded that High 5 Casino and High 5 Vegas constitute online gambling, categorizing them as activities prohibited under state law.
Understanding Washington's Stance on Online Gambling
Washington state has a stringent classification for online gambling. The state defines it as any activity where users must stake value on the outcome of a game of chance or an event with a prize offered for a successful outcome. This inclusive definition means that many gaming operators, including those offering social games, avoid operating within Washington to sidestep legal repercussions.
High 5 Games defended its operations by arguing that its games leverage virtual coins and should be considered a “social casino.” The company emphasized that its games emulate video slot machines found in physical casinos. However, Judge Cartwright determined that these games still fall under the purview of the Washington Consumer Protection Act and the Recovery of Money Lost at Gambling Act.
The Legal Journey
The ruling marks the culmination of a six-year legal odyssey that began when High 5 Games player Rick Larsen initially filed the lawsuit. Larsen contended that the apps promoted illegal gambling by creating an environment where players were required to purchase additional chips using real money to continue playing. High 5 Games countered that players could use free coins provided upon registration or periodically awarded, but Judge Cartwright highlighted that users could not play consistently without making purchases. According to Washington law, virtual currency is deemed a “thing of value,” even if it cannot be directly redeemed for cash.
High 5 Games has since expressed that it has made efforts to cease its operations within Washington. Nevertheless, Judge Cartwright ruled that the company is liable for damages owed to Larsen and other plaintiffs. The specifics of the damages will be determined by a jury.
Implications and Broader Context
The case has broader implications for the online gaming industry, particularly within jurisdictions that have strict gambling regulations. In a separate but related case, Wilson vs. PTT, LLC, Judge Robert Lasnik ruled that online gaming companies DoubleDown Interactive and IGT also violated Washington state gambling laws. The games offered by these companies are ostensibly free to play but allow users to purchase additional chips. Consumers can bet to acquire more chips, which otherwise would necessitate further purchases.
The verdict in High 5 Games’ case sets a precedent that could impact future rulings and the operations of similar companies within Washington. As of now, SBC Americas has not received a response from High 5 Games regarding Judge Cartwright's ruling.
Messages and Quotations
In her ruling, Judge Cartwright stated, “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 underscores the court’s firm stance on what constitutes illegal gambling within the state.
As the industry navigates the complexities of varying state laws, the ruling against High 5 Games serves as a sobering reminder of the legal challenges that can arise. Companies offering similar gaming experiences must now reassess their compliance to avoid similar legal entanglements, especially in states with rigid anti-gambling laws.