The Legal Battle Over High 5 Games' Mobile Apps in Washington
After a protracted legal case, two mobile apps offered by High 5 Games have been ruled illegal in Washington. Western Washington District Court Judge Tiffany Cartwright found that High 5 Casino and High 5 Vegas constitute online gambling, which is illegal in the state. Here’s a detailed look into the legal journey and the verdict that followed.
Washington's Stance on Online Gambling
Washington classifies 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 on offer for a certain outcome. This broad definition has led many gaming operators, even social ones, to avoid operating in Washington. High 5 Games, however, contended that it operates with virtual coins and is a “social casino.” Their games emulate video slot machines used for gambling in physical casinos, which brought them under scrutiny.
The Lingering Legal Case
The verdict comes six years after High 5 Games player Rick Larsen first filed the suit. In her ruling, Cartwright determined that High 5 games are prohibited under the Washington Consumer Protection Act and the Recovery of Money Lost at Gambling Act. The apps promoted illegal gambling by requiring players to purchase additional chips using real money. High 5’s defense argued that players could use free coins given upon registration and periodically awarded. However, it was noted that users cannot play with regularity unless they are willing to pay.
Washington law recognizes virtual currency as a “thing of value” even if it cannot be redeemed for cash. Therefore, High 5 Games' model of using virtual currency in exchange for gameplay directly conflicts with the state’s stringent regulations against online gambling.
High 5 Games’ Response and Implications
Following the ruling, High 5 Games indicated that it has made efforts to cease operating in Washington. Despite this, the company is still liable to pay damages to Larsen and other plaintiffs. The amount of damages will be determined by a jury, adding further financial strain on the company and potentially setting a precedent for similar future cases.
SBC Americas has not yet received a response from High 5 Games on the verdict, leaving many in the gaming industry to speculate on the company's next steps and broader implications for the sector.
Similar Cases and Precedents
This case is not isolated. Judge Robert Lasnik ruled that online gaming companies DoubleDown Interactive and IGT also violated Washington state gambling law. The games offered by these companies are free to play, but users can pay for additional chips. Consumers bet to acquire more chips, which they would otherwise need to buy. This highlights a growing trend of such "social casinos" being scrutinized under state gambling laws.
A separate case involving High 5 Games, Wilson vs. PTT, LLC, is still active but has not made progress since early 2023. The outcome of this case could further influence the legal landscape for online gambling and social gaming companies operating in jurisdictions with similar regulations to Washington.
The Road Ahead for High 5 Games
The ruling against High 5 Games serves as a stern reminder of the complexities and legal intricacies involved in the online gambling industry. Companies must navigate a labyrinth of state and federal regulations, each with its specific definitions and stipulations regarding what constitutes illegal gambling. As more states evaluate and update their legal frameworks surrounding online gaming, operators like High 5 Games will need to stay continuously vigilant and adaptable.
In summary, the decision by Judge Tiffany Cartwright underscores the necessity for online gaming companies to thoroughly comprehend and comply with local gambling laws. The verdict not only affects High 5 Games but also sends a clear message to the broader industry about the importance of regulatory adherence. With potential damages looming and a jury yet to determine the financial repercussions, the outcome of this case will undoubtedly leave a lasting impact on the future of online gaming in Washington and beyond.
Conclusion
The legal battle over High 5 Games' mobile apps in Washington has drawn significant attention within the gaming community. As the industry continues to evolve, this case serves as a pivotal example of the legal challenges that can arise when virtual gaming intersects with stringent state gambling regulations. How companies navigate these challenges will shape the future landscape of online gaming.