High 5 Ordered to Repay Millions After WA Declares Its Products Illegal

High 5 Games, a New York-based gaming company, has stirred controversy in the state of Washington as its social casino apps have been labeled “illegal gambling” by Western Washington District Court Judge Tiffany Cartwright. The court’s decision pivots on the assertion that the company’s products violate state gambling regulations, which may result in High 5 having to return substantial sums of money to players in the region. This legal predicament roots back to a lawsuit initiated by Rick Larsen, a player who alleged significant financial losses—over $7,000, as specified in court documents—with the gaming company’s apps.

Filed initially in 2018, the class-action suit asserts that High 5 Casino and High 5 Vegas contravene Washington’s gambling laws. Larsen highlighted that these social apps furnish free virtual coins upon registration, enabling users to play without initial payment. However, once these virtual coins are exhausted, players are compelled to purchase additional coins to continue. Larsen’s complaint emphasizes the violation of the state’s Consumer Protection Act (CPA) and the Recovery of Money Lost at Gambling Act (RMLGA). Judge Cartwright’s ruling mirrored an earlier case involving another social casino operator, Big Fish, which was mandated to pay back $155 million to players in a 201

Under the current class action against High 5, players who have purchased virtual coins stand to receive a damages payout. Washington’s law clearly states that individuals who have lost “something of value” to illegal gambling activities are eligible for reimbursement. Larsen’s legal team claims that players in Washington have spent upwards of $21.6 million on High 5 Casino and High 5 Vegas between 2014 and 2023. Nevertheless, Judge Cartwright has pointed out that this figure is not final and highlighted that damages should be recalculated by a jury for precision.

In a related dimension of the gambling industry’s legal entanglements, MGM Resorts is facing a separate class action lawsuit arising from a major data breach last September. The plaintiffs assert that MGM’s alleged negligence allowed hackers to penetrate the company’s systems, causing extensive damage to its loyalty program and failing to protect guest data. The situation underscores that both physical and digital gambling enterprises are increasingly under scrutiny for compliance with legal and security standards. Amidst these developments, it is evident that the landscape of online and social casinos is facing unprecedented challenges, urging players and companies alike to navigate cautiously.