High 5 Games Ruled Illegal in Washington: A Landmark Verdict
The legal landscape of online gaming in Washington has seen a seismic shift following a ruling against High 5 Games. Two of the company's mobile apps, High 5 Casino and High 5 Vegas, have been declared illegal by Western Washington District Court Judge Tiffany Cartwright. Her decision came after a protracted legal battle, initiated six years prior by High 5 Games player Rick Larsen.
Classifying Online Gambling
Judge Cartwright's ruling was grounded in Washington's strict classification of online gambling. According to state laws, online gambling is defined as any activity that requires users to stake value on the outcome of a game of chance or an event, with a prize contingent on a specific result. Despite High 5 Games’ assertion that its platform operates on virtual coins and is merely a "social casino," the courts found otherwise.
High 5’s games are designed to replicate video slot machines akin to those in physical casinos. Such emulation brings them under the purview of Washington's gambling laws. Many gaming operators, including social gaming platforms, have steered clear of Washington due to these stringent regulations.
The Legal Proceedings
Judge Cartwright ruled that High 5’s operations violated both the Washington Consumer Protection Act and the Recovery of Money Lost at Gambling Act. The case significantly hinged on the issue of virtual currency. Although High 5 contended that players received free coins upon registration and periodically thereafter, Judge Cartwright found that the requirement to purchase additional chips with real money for regular play constituted illegal gambling.
Washington law recognizes virtual currency as a “thing of value” even if it cannot be redeemed for cash, a crucial point that underpinned the court's decision. The ruling made High 5 Games liable to pay damages to Rick Larsen and other plaintiffs, with the amount to be determined by a jury.
Wider Implications for the Gaming Industry
High 5 Games has reportedly made efforts to cease its operations in Washington following the ruling. However, this case is expected to have wider implications across the online gaming industry, particularly for companies that operate in the social gaming sector. The ruling underscores the necessity for gaming operators to meticulously navigate the complex and varied legal landscapes of different states.
Another Case on Hold
Separately, another case involving High 5 Games, Wilson vs. PTT, LLC, remains active, though it has not seen significant progress since early 2023. This case could further influence future legal interpretations and regulatory scrutiny in Washington and potentially beyond.
In a related development, Judge Robert Lasnik found that DoubleDown Interactive and IGT also violated Washington state gambling laws. These companies offered games free to play but allowed users to purchase additional chips. Consumers were found to be betting to acquire more chips, which they otherwise would need to buy.
The Industry Responds
To date, SBC Americas has not received a response from High 5 Games concerning the verdict. As the gaming industry observes these developments, operators and users alike are poised to understand the long-term impact of such landmark rulings.
Will this ruling lead to stricter regulations across different states? Or will it prompt a re-evaluation of what constitutes gambling in the age of digital and social gaming? These are pressing questions that industry stakeholders must grapple with in the wake of the High 5 Games verdict. As always, staying updated with legal and regulatory developments remains crucial for all players in the gaming sector.
In conclusion, the High 5 Games ruling marks a significant moment in online gambling law, particularly in Washington. The judgment not only affects High 5 but also sends a clear message to the broader gaming industry about the legal boundaries of virtual and social gaming.