High 5 Games' Apps Ruled Illegal in Washington: A Legal Milestone in Online Gambling
In a significant legal verdict, two mobile applications offered by High 5 Games have been ruled illegal in Washington State. Western Washington District Court Judge Tiffany Cartwright determined that the apps, High 5 Casino and High 5 Vegas, fit the criteria of online gambling, which is prohibited in the jurisdiction.
Defining Online Gambling
Washington State classifies online gambling as any activity where users stake value on the outcome of a game of chance, or any event offering a prize for a specific outcome. This broad definition has led many gaming operators, including social gaming platforms, to avoid operating in the state altogether. High 5 Games argued that its apps use virtual coins and fall under the “social casino” category, suggesting they should not be classified as gambling.
However, Judge Cartwright found that High 5’s apps closely emulate video slot machines found in physical casinos. As such, the games fall under the parameters set by the Washington Consumer Protection Act and the Recovery of Money Lost at Gambling Act.
A Six-Year Legal Battle
The legal battle that culminated in Judge Cartwright's verdict began six years ago when High 5 Games player Rick Larsen first filed the suit. Larsen accused the company of promoting illegal gambling by requiring players to purchase additional virtual chips using real money. High 5 countered that players could use free coins provided upon registration and awarded periodically.
However, the court found that users could not play these games with any regularity unless they were willing to make purchases. Under Washington law, virtual currency is considered a “thing of value,” even if it cannot be directly redeemed for cash, thereby making these purchases tantamount to gambling.
Cartwright's Ruling and Its Implications
Judge Cartwright ruled that High 5 Games is liable for damages to Rick Larsen and other plaintiffs involved in the lawsuit. The specific amount of damages is yet to be determined by a jury. Following the ruling, High 5 Games indicated that it has made efforts to cease its operations in Washington State.
SBC Americas has yet to receive a response from High 5 Games concerning the court’s decision. The verdict marks a pivotal moment in the ongoing scrutiny of online gaming companies and their compliance with state gambling laws.
Broader Impact on the Industry
The High 5 Games case isn't an isolated incident. Another ongoing legal battle, Wilson vs. PTT, LLC, also features prominently in this context. In this case, Judge Robert Lasnik ruled that companies such as DoubleDown Interactive and IGT violated Washington state gambling laws. Similar to High 5’s applications, the games offered by these companies are ostensibly free to play, yet allow users to purchase additional chips. This practice effectively coerces consumers into betting real money to continue playing.
Judge Cartwright's ruling reinforces the state's stringent stance on online gambling and sends a clear message to other gaming operators. Companies must thoroughly review their business models to ensure compliance with state laws or face severe legal repercussions.
Future Legal Landscape
The development also raises questions about the future legal landscape for online gaming in no uncertain terms. As states continue to clamp down on what they deem illegal gambling, the industry must navigate an increasingly complex regulatory environment. While many gaming companies have successfully argued that their platforms are intended for social interaction and entertainment, this ruling suggests that such defenses may hold less water in jurisdictions with stringent anti-gambling laws.
The attention now pivots to the jury's determination of the damages High 5 Games will need to pay. This decision will likely set a benchmark for future cases and could potentially spark a re-evaluation of business strategies within the online gaming industry.
Conclusion
The ruling against High 5 Games by Judge Tiffany Cartwright is a landmark case in the legal landscape surrounding online gambling. It underscores Washington State's firm stance on gambling laws and serves as a cautionary tale for other gaming operators. With the judgment rendered and damages pending, the industry watches with bated breath. The fallout promises to reshape the contours of online gaming compliance far beyond the state of Washington.