High 5 Games to Pay $24.9M for Gambling Violations
The Most Important Points at a Glance
A court in Washington has ordered High 5 Games to pay $24.9 million in damages. The operator of a social casino was found guilty of violating the state’s gambling laws. The decision affects players who lost money on the platform.
Background of the Ruling
High 5 Games operated a social casino that offered players virtual chips to use. Although these chips could not be directly converted into money, the court argued that the business model still fell under gambling regulations. The company had already been found guilty last year of violating state regulations.
Compensation for Affected Players
The jury awarded a total of $18 million in compensation to affected players. Additionally, a further $7 million was imposed as an enhanced penalty. A key argument in the trial was that High 5 Games specifically targeted so-called “whales”—players who placed high bets. Many of these players suffered from gambling addiction and experienced significant financial losses.
Reaction from High 5 Games
The company denied the allegations and disputed any wrongdoing. High 5 Games argued that the demanded compensation claims were not justified. Despite the ruling, it remains unclear whether the company will pursue further legal action.
Impact on the Gambling Industry
Legal experts see this ruling as an important precedent for the regulation of online gambling. Todd Logan, a partner at the law firm Edelson PC, described the decision as a significant step. He emphasized that major tech companies should no longer be allowed to profit from problematic gambling behavior. More lawsuits against similar providers could follow.
Our Assessment
This ruling shows that social casinos are not exempt from gambling laws. Providers that rely on in-game purchases must prepare for stricter regulations. Players should be aware that even seemingly harmless social casinos carry financial risks. The decision could have far-reaching consequences for the entire industry.
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