Western Washington District Court Judge Tiffany Cartwright dealt a blow to the concept of “free play” social casinos last week when she ruled that social gambling apps High 5 Casino and High 5 Vegas constitute real gambling in the state. The judge’s decision is based on the idea that even virtual coins have value, especially when they are available for purchase from the operator.
“The undisputed material facts as to liability show that High 5’s games violate Washington’s gambling laws and the Consumer Protection Act,” Judge Cartwright wrote in her decision. That “undisputed material fact” draw to a close a six-year legal battle that began when High 5 Games player Rick Larsen filed suit in Washington stating that the app was not a social game because players could purchase virtual coins to keep playing after their free coins were spent.
In a statement from the ruling reported on by EGR Global, Judge Cartwright explained why “free coins” actually have real value saying, “As explained in Kater, the coins need no intrinsic pecuniary value – their value derives from their usability in enabling game play. When High 5’s virtual coins are wagered on its games, they are ‘things of value’ being gambled.”
Washington has become a very tough place for social casinos to operate in since the Kater case the judge referred to ruled that virtual coins are “a thing of value” – and that definition extends to them even if they can’t be cashed in for real money.
“Even if players can create new accounts to receive free coins, or wait for free coins to be awarded, other courts in this district have held that ‘it does not matter that a player may receive free coins at some future time’ (such as by taking the time to create a new account)’ because, until then, they must pay to extend the privilege of playing,'” she added.
In the wake of Cartwright’s ruling, High 5 Games is now liable for more potential lawsuits from aggrieved Washington social casino players. Whether of not other states will follow Washington’s lead is a major concern for social casino operators.