Washington state judge delivers ruling on two social casino apps

Article by : Charles Perrin Jun 21, 2024

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A federal judge in Washington state has delivered her ruling on two social casino apps operated by New York-based High 5 Games as illegal.

In light of being viewed as unconstitutional for gambling purposes, Court Judge Tiffany Cartwright’s ruling means High 5 Games could now be liable to pay damages under the state’s Recovery of Money Lost at Gambling Act (RMLGA) as their games also violated Washington’s Consumer Protection Act (CPA).

When registering on tech platforms, such as Facebook, Google Play, or the App Store, players will receive free virtual coins for signing up.

After reaching their virtual currency limit, players will need to purchase more coins with real money to continue their journey.

However, after former player Rick Larsen brought the case against High 5 Games, Cartwright agreed that the games were in breach of Washington’s codes on gambling.

It was determined through legal papers that Larsen spent $7,450 on the aforementioned social casino apps, and he claimed the apps prompted illegal gambling.

Washington’s laws differ from many other gambling states, recognizing virtual currency as a “thing of value”, even if it can’t necessarily be redeemed for cash.

Meanwhile, the RMLGA stipulates that all “persons losing money or anything of value on any illegal gambling games shall have a cause of action to recover from the proprietor for whose benefit such a game was played, that being the value of the thing so lost”.

Subpoenas that were served by Larsen’s lawyers revealed that Washington residents spent more than $21.6 million on social casino apps from 2014 to 2023.

High 5 Games has steadfastly contended that it serves as a social casino rather than an illegal gambling avenue.

In the meantime, it maintains it has made efforts to cease operating in Washington by geoblocking players and asking for confirmation of their address.