A Washington State jury made history thislate last week when it ordered High 5 Games, a social casino, to pay out almost $25 million to players who were harmed by what the court called “illegal gambling”. It’s a landmark case that will certainly ripple through the social casino market and could significantly alter how companies like High 5 Games market their products.
The case against High 5 Games was brought on by the law firm of Tousley Brain Stephens PLLC on behalf of a player named Rick Larsen. Larsen’s contention, the one that the jury accepted, was that High 5 Games’ social casino model was essentially an unlicensed casino. Though players had the option to play with free coins, Larsen alleged that High 5 targeted problem gamblers with promotions aimed at getting them to purchase the “free coins”.
During the trial, the plaintiff presented evidence showing High 5 Games luring “whales” with generous promotion offers. Unfortunately, those “whales” included problem gamblers who were presented with promo offers while asking High 5 to shut down their accounts.
Tousley Brain Stephens Partner Cecily Jordan summed up the significance of the jury’s verdict in a recent press release saying, “Today’s verdict sends a clear message: online casinos that exploit consumers under the guise of ‘social gaming’ will be held accountable. Ordinary people who have lost their life savings in these apps now have a jury vindicating them.”
Edelson PC Todd Logan echoed that sentiment saying, “Big Tech isn’t just standing by—they’re cashing in.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.”
Lawyers involved in the case point out that social casinos have already shelled out more than $650 million in damages in out-of-court settlements. They also noted that they will continue the fight against social casinos with future lawsuits.