Two mobile apps developed by High 5 Games – High 5 Casino and High 5 Vegas – have been ruled illegal in the case of Rick Larsen et al. v. PTT LLC et al.
Online gambling is illegal in Washington. High 5 contends it is a social casino platform operating with virtual coins, Judge Tiffany Cartwright ruled the operations as illegal under the Washington Consumer Protection Act and the Recovery of Money Lost at Gambling Act.
Player Rick Larsen sued High 5 in 2018, alleging that the apps promoted illegal gambling by requiring players to buy additional chips using real money. High 5 contested that players do not need to buy coins and can wait for the site to award free coins. However, Cartwright cited previous arguments from other district courts, stating that this does not matter because “until then, they must pay to extend their privilege of playing.”
In opposition to High 5’s argument that the coins hold no monetary value since they are given out for free, Judge Cartwright referenced a 2018 case involving plaintiff Cheryl Kater and horse racing company Churchill Downs Inc., concluding that the coins are items of value under Washington law.
“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 judge explained.
After Cartwright’s order on Tuesday, High 5 is liable for damages to Larsen’s class of consumers, and a jury will determine the compensation amount.
This legal action against High 5 comes as more state officials across the United States are taking a stance on sweepstakes casinos. In October, sweepstakes casinos ceased operations in Michigan after a two-year investigation.
