Washington court rules High 5 Games apps constitute illegal gambling
The social casino platform sees users play with virtual coins, which have been deemed 'items of value' under state's law
Two mobile apps developed by High 5 Games – High 5 Casino and High 5 Vegas – have been classed as illegal gambling games in a Washington court ruling.
The apps have been found to be in breach of both Washington’s Consumer Protection Act (CPA) and Recovery of Money Lost at Gambling Act.
Both apps give players virtual coins to spend on in-app games, and players can win more coins through successful bets.
Despite High 5’s argument that the coins are given out for free and therefore hold no monetary value, the presiding judge determined the coins are indeed items of value under Washington law.
Citing precedent from the 2018 case of Kater v. Churchill Downs Inc, US District Judge Tiffany M Cartwright ruled the coins hold value to the player as they can win more virtual coins with a successful spin.
Judge Cartwright said: “As explained in Kater, the coins need no intrinsic pecuniary value – their value derives from their usability in enabling gameplay. When High 5’s virtual coins are wagered on its games, they are ‘things of value’ being gambled.”
The original lawsuit was brought against High 5 in 2018 by consumer Rick Larsen, who initially argued that the apps were illegal under Washington Law as they constituted a form of illegal gambling.
The case argued that High 5 violated Washington law by advertising its games as free to play, despite the fact players had to pay for additional chips within the app.
In response to High 5 Games’ claim that players didn’t have to make any in-app purchases if they didn’t want to, Judge Cartwright said: “Even if players can create new accounts to receive free coins, or wait for free coins to be awarded, other courts in this district have held that it ‘does not matter that a player may obtain more free coins at some future time’ (such as by taking the time to create a new account) ‘because, until then, they must pay to extend their privilege of playing.'”
The ruling means High 5 will be liable for damages to a class of consumers led by Larsen, and the amount will be determined by a jury later down the line.
EGR North America has contacted High 5 Games for comment.