**Washington State Declares High 5 Games' Mobile Apps as Illegal Gambling**
In a landmark ruling, two mobile apps offered by High 5 Games have been declared illegal in the state of Washington. After a prolonged legal battle, Judge Tiffany Cartwright of the Western Washington District Court determined that High 5 Casino and High 5 Vegas constitute online gambling, which is prohibited under Washington state law.
**Understanding Washington's Stance on Online Gambling**
Washington classifies online gambling as any form of gaming that requires users to stake value on the outcome of a game of chance or any event where a prize is on offer. Due to these stringent regulations, many gaming operators, including those operating social casinos, avoid entering Washington's market.
High 5 Games argued that its apps operate on virtual coins, thereby qualifying them as "social casinos." However, Judge Cartwright found that the games mimic video slot machines typically found in physical casinos, making them fall under the state's definition of online gambling.
**Legal Findings**
The court found High 5 Games in violation of the Washington Consumer Protection Act and the Recovery of Money Lost at Gambling Act. This verdict comes following a lawsuit initially filed by player Rick Larsen six years ago.
One of the key aspects of the ruling centered around the requirement for players to purchase additional chips using real money. Although High 5 Games contended that players can play using free coins given upon registration and periodically awarded, the court noted that it was impractical for users to play regularly without making real money purchases. Furthermore, Washington law recognizes virtual currency as a "thing of value," even if it can't be redeemed for cash.
**High 5 Games' Response and Consequences**
In response to the ruling, High 5 Games stated that it has made efforts to cease operations in Washington. Nevertheless, Judge Cartwright ruled that the company is liable to pay damages to Rick Larsen and other plaintiffs. The total amount of damages will be determined by a jury at a later date. SBC Americas has sought a statement from High 5 Games regarding the verdict but has not yet received a response.
**Implications for the Gaming Industry**
The ruling against High 5 Games isn't an isolated incident. Another ongoing case, Wilson vs. PTT LLC, also implicates High 5 Games and has seen little progress since early 2023. In a related ruling, Judge Robert Lasnik determined that online gaming companies DoubleDown Interactive and IGT had similarly violated Washington state gambling laws. These companies offer games that are free to play but allow users to purchase additional chips, leading to a situation where consumers bet to acquire more chips rather than buying them directly.
**Expert Opinions**
Judge Cartwright remarked, "The undisputed material facts as to liability show that High 5’s games violate Washington’s gambling laws and the Consumer Protection Act."
This ruling has significant implications for other operators in the highly regulated online gaming industry. As jurisdictions continue to scrutinize the operations of online and social casinos, companies may need to reevaluate their business models to ensure compliance with stringent regulations.
**Looking Ahead**
While the exact amount of damages to be awarded to the plaintiffs still awaits determination by a jury, this case underscores the legal vulnerabilities faced by online gaming operators in regions with strict gambling laws like Washington. The outcomes of this and other ongoing cases will likely shape the future landscape of online and mobile gaming in the United States.