Legal Ruling Declares Two High 5 Games Mobile Apps Illegal in Washington
In a significant legal development, two mobile apps offered by High 5 Games have been declared illegal within the state of Washington. The ruling, delivered by Western Washington District Court Judge Tiffany Cartwright, identified High 5 Casino and High 5 Vegas as forms of online gambling, contravening state law.
Definition of Online Gambling in Washington
According to Washington state law, online gambling encompasses any activity where users stake a value on the outcome of a game of chance or an event offering prizes for specific outcomes. This broad definition has caused many gaming operators, including social gaming platforms, to steer clear of the state to avoid legal troubles.
High 5 Games argued that its apps utilize virtual coins and positioned itself as a "social casino." However, the games mirror video slot machines common in traditional casinos, a similarity that Judge Cartwright found critical in her decision.
Violation of State Laws
Judge Cartwright determined that High 5's games are in violation of both the Washington Consumer Protection Act and the Recovery of Money Lost at Gambling Act. The verdict followed a protracted six-year legal battle initiated by High 5 Games player Rick Larsen, who first filed the lawsuit.
Prominent in the case was the discovery that High 5's games were promoting illegal gambling by compelling players to purchase additional chips with real money. High 5 countered this claim by mentioning that players receive free coins upon registration and are periodically awarded additional coins. Nonetheless, the argument faltered as it was revealed that regular gameplay necessitated purchases.
Washington’s Stance on Virtual Currency
Washington state law is distinctive in its recognition of virtual currency as a "thing of value," even if it cannot be exchanged for cash. This legal perspective reinforced the court's stance against High 5 Games, acknowledging that the virtual coins used for betting within the apps constituted a form of value under state law.
In response to the ruling, High 5 Games indicated that it has taken steps to cease its operations within Washington. However, Judge Cartwright's decision mandates that the company is liable to pay damages to Larsen and other plaintiffs involved in the class-action lawsuit. The exact amount of damages remains undetermined, pending a jury's decision.
Ongoing Legal Matters
Meanwhile, another related legal case, Wilson vs. PTT, LLC, involving High 5 Games, remains active but has seen no recent progress since early 2023. The gaming industry continues to face legal scrutiny in Washington, highlighted by a separate ruling from Judge Robert Lasnik. This ruling found that online gaming companies DoubleDown Interactive and IGT also violated Washington state gambling laws.
The games offered by DoubleDown Interactive and IGT are free to play, but offer users the option to purchase additional chips. Consumers end up betting to acquire more chips, which otherwise require payment. This mirrors the legal issues faced by High 5 Games, underlining the pervasive challenge online gaming companies encounter in adhering to Washington state’s stringent gambling laws.
Implications and Reactions
The ruling against High 5 Games underscores the legal complexities and evolving interpretations surrounding online gaming laws. The differentiation between social gaming and gambling remains a delicate and contested issue within legal frameworks. High 5 Games' contention that its apps were social casinos did not hold up under the court's rigorous examination, which focused on the transactional nature of in-game purchases.
SBC Americas has not yet received an official response from High 5 Games regarding the verdict, and the gaming community is keenly watching for any further statements or actions from the company.
As the gaming landscape continues to evolve, companies operating in this sphere must remain vigilant about state-specific regulations. The High 5 Games lawsuit serves as a cautionary tale, reminding operators of the potential legal pitfalls associated with online gambling and the importance of adhering to local laws and regulations.