Washington Jury Orders High 5 Games to Pay $24.9 Million in Landmark Social Casino Case

A Washington state jury has found High 5 Games liable for operating illegal gambling through its social casino platforms, ordering the company to pay $24.9 million in damages. The verdict, described as the first of its kind against a social casino operator, comes after a years-long legal battle over the company’s monetization practices.

The lawsuit was originally filed by player Rick Larsen, who alleged that High 5 Casino and High 5 Vegas required players to purchase virtual chips with real money to continue playing, constituting illegal gambling under Washington state law. While High 5 Games argued that players were given free promotional coins and were not obligated to spend real money, the jury ultimately sided with the plaintiffs.

The ruling follows a 2024 court decision that determined High 5 Games’ social casino model violated state gambling laws. Under Washington law, gambling is defined as wagering something of value on a game of chance. Plaintiffs argued that virtual chips, though they could not be cashed out, still had value as they extended gameplay. The court agreed with this interpretation, leading to the jury’s recent decision.

Allegations of Predatory Practices

During the trial, evidence was presented suggesting that High 5 Games specifically targeted high-spending players, often referred to as “whales.” The company allegedly incentivized these s to continue playing even after they expressed concerns about gambling addiction. One player who requested to have their closed due to addiction was instead offered promotional coins to keep playing.

The jury determined that High 5 customers in Washington lost nearly $18 million through the company’s games, awarding an additional $7 million in statutory damages. The ruling adds to a growing number of legal actions against social casino operators, with settlements in similar cases exceeding $650 million to date. Unlike many operators that chose to settle, High 5 Games opted to take the case to trial and now faces a substantial financial penalty.

Implications for the Social Casino Industry

The verdict against High 5 Games is expected to influence ongoing litigation against major tech companies, including Amazon, Meta, social casino gambling by processing transactions and taking a commission from the money spent.

Edelson PC, one of the law firms representing the plaintiffs, has positioned the case as part of a larger effort to hold both social casino operators and tech companies able. “Big Tech isn’t just standing by—they’re cashing in,” said Todd Logan, a partner at Edelson PC. “This verdict is a milestone, but it’s only the beginning.”

Washington state has been at the forefront of legal challenges against social casinos, with courts increasingly scrutinizing the practice of selling virtual currency for gameplay. The ruling could set a precedent for similar lawsuits in other states, potentially leading to greater regulation of social casino platforms.

Future Legal and Regulatory Challenges

High 5 Games now faces a decision on whether to appeal the verdict or comply with the jury’s ruling. Regardless of its next steps, the case highlights the increasing legal scrutiny surrounding social casinos and their monetization practices.

With the rapid growth of mobile gaming and in-app purchases, regulators may be prompted to introduce stricter oversight of digital gambling practices. If more courts classify virtual currency transactions as gambling, gaming companies may be forced to alter their business models to avoid legal consequences.

As social casino operators and tech companies brace for further legal action, the outcome of this case may serve as a turning point for the broader industry.

Source:

High 5 Games ordered to pay nearly $25M in social casino class action verdict, sbcamericas.com, February 10, 2025.