Key points:
- A jury awarded $24.9m in damages to Washington state consumers who lost money playing High 5’s online casino games
- A prior court ruling classified High 5 Games’ social casino products as illegal gambling under Washington law
- Evidence presented in court alleged High 5 targeted high-spending users, including players with gambling addictions
A Washington state jury has ruled against High 5 Games, ordering the company 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 offer digital slot machines and casino-style games where players can use real money to purchase virtual chips. The lawsuit argued that despite these chips having no official cash value, they functioned as gambling wagers because players had to buy more to continue playing. The court agreed, setting a legal precedent in Washington.
The jury found that High 5’s customers in Washington lost nearly $18m and awarded an additional $7m in statutory damages. Evidence presented at trial indicated that High 5 Games targeted 'whale' players—a term for high-spending users—by offering free promotional chips to keep them playing.
One player, who requested their account be closed due to gambling addiction, was instead offered incentives to continue playing.
The verdict follows multiple settlements in similar cases, where social casino operators have paid over $650m to players who lost money in their games. Unlike previous cases, High 5 chose to go to trial rather than settle.
Good to know: The lawsuit’s outcome is expected to influence ongoing litigation against Big Tech companies such as Amazon, Meta, Google and Apple, which allegedly profit from social casinos by processing payments and collecting fees.
Attorneys for the plaintiffs argue that these companies act as financial intermediaries, taking a percentage of each transaction.
Todd Logan, a partner at Edelson PC, the law firm representing the plaintiffs, stated: "Big tech isn’t just standing by—they’re cashing in. This verdict is a milestone, but it’s only the beginning."
In July 2024, High 5 Games entered West Virginia, its fifth US market, offering games such as 88 Drums, Da Vinci DeluxeWays and Green Machine Deluxe.
