High 5 Games Hit with $25 Million Lawsuit in Washington State
A Washington court has ordered social casino games provider High 5 Games to pay $25 million to plaintiffs who suffered financial losses on the platform while it was allegedly offering illegal gambling activities in the state.
LISTEN TO THIS ARTICLE:The class action lawsuit filed by former customers alleges that High 5 Games' online social casino offerings breached Washington state's gambling laws and constituted illegal gambling.
High 5 Games operated like other leading social casinos, offering games of chance where players could bet using a virtual currency. However, when players use up their digital tokens, they have to buy more to keep playing.
The plaintiffs argued that High 5 Games' offerings qualified as gambling because players had to spend real money to play, even though they couldn't withdraw their winnings.
In light of a prior judgment that confirmed the gambling nature of these products, the court delivered a ruling in favor of the plaintiffs, ordering the operator to pay damages to affected players.
High 5 Games Allegedly Targeted Whale Players
The class action was initiated by high-stakes players in the state who claimed to have lost $18 million collectively after being drawn in by aggressive marketing tactics, including free virtual currency and various promotional offers.
Court evidence revealed that High 5 Games employees in Washington state strategically targeted high-spending users, labeling them as 'whales', many of whom suffered from gambling addiction and incurred massive losses.
A plaintiff testified that he had asked High 5 Games to shut down his account due to concerns about his own addiction, but instead of receiving help, he was presented with a promotional offer and encouraged to continue playing.
The court's ruling mandates High 5 Games to pay a total of $24.9 million to affected players in the state, including the $18 million in losses incurred by the players, and an additional $6.9 million in damages.
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Law Firm Celebrates Ruling
Edelson PC, the law firm that represented the plaintiffs, expressed satisfaction with the outcome, hailing the landmark ruling as a major victory for their clients.
This verdict is a milestone, but it’s only the beginning. Some of our clients lost hundreds of thousands of dollars to their gambling addictions here, and big tech cannot be allowed to continue to profit off of these devastating addictions. We will continue fighting to ensure big tech answers for its role in enabling and profiting from illegal gambling.
However, High 5 Games still has the option to appeal the decision. It is likely that the operator will toe this path since it denied any wrongdoing during the trial, arguing that the plaintiffs could not provide sufficient evidence to support their claims for damages.
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