A jury in Washington has ruled against High 5 Games, marking the first class action verdict against an online social casino operator. The decision follows previous casino studio online settlements, which have totaled over $650m.
High 5 Games Faces Landmark Ruling
A Washington state jury has ordered High 5 Games to pay $24.9m in damages to players in the state. The lawsuit, which alleged that High 5 operated illegal gambling games, follows a court ruling last year that found its social casino model violated Washington gambling laws.
Social casinos, including those developed by top game developers, offer digital slot machines and casino-style games where players can use real money to purchase virtual chips. Although these chips have no official cash value, the court ruled they functioned as gambling wagers, as players were required to buy more to continue playing. This precedent could impact other live dealer and casino studio online operators.
The Impact on the Casino Industry
The jury determined that High 5 Games’ customers in Washington lost nearly $18m and awarded an additional $7m in statutory damages. Evidence presented at trial indicated that High 5 targeted ‘whale’ players—high-spending users—by offering free promotional chips to encourage continued play.
In one case, a player who requested their account be closed due to gambling addiction was instead offered incentivesto continue playing, raising ethical concerns within the live studio gaming sector.
A Blow to the Social Casino Market?
Unlike other operators that opted for settlements, High 5 Games took the case to trial—ultimately losing. The verdict follows a series of casino-related legal battles, where social casino operators have paid out over $650m to players who lost money playing their games.
This decision may also influence ongoing litigation against Big Tech companies such as Amazon, Meta, Google, and Apple, which profit from social casino transactions by processing payments and collecting fees.
Todd Logan, a partner at Edelson PC, the law firm representing the plaintiffs, commented:
“Big tech isn’t just standing by—they’re cashing in. This verdict is a milestone, but it’s only the beginning.”
High 5 Games Expands Despite Legal Challenges
Despite this legal setback, High 5 Games continues expanding. In July 2024, the company entered West Virginia, marking its fifth US market, offering popular Evolution Games such as 88 Drums, Da Vinci DeluxeWays, and Green Machine Deluxe.
As lawsuits against social casinos gain momentum, industry experts will be closely watching whether other game developers or casinos for sale will face similar scrutiny.
