High 5 Entertainment LLC

High 5 Entertainment LLC News

A federal jury has awarded nearly $25 million to players of the High 5 Casino and High 5 Vegas mobile gambling apps, after a lawsuit claimed these apps operated illegally in Washington state. The case, filed in April 2018, argued that the apps were essentially unlawful gambling platforms because players were required to buy virtual chips to continue playing, even after the initial free chips were used up.

In June 2024, U.S. District Judge Tiffany M. Cartwright ruled in favor of the plaintiffs, stating that the apps were indeed illegal gambling games under Washington law. The court found that the business model of the social casino apps, which enticed users with “free-to-play” gameplay but required monetary purchases to continue, violated the state’s gambling laws. The judge ruled that class members were entitled to recover the value of what they lost while playing the app.

A four-day trial in February 2025 saw a Washington jury award $17.7 million in actual damages to the plaintiffs, as well as an additional $7.1 million in enhanced damages, for a total of approximately $24.8 million in compensation. The jury also awarded the individual plaintiff approximately $11,653 in damages.

The lawsuit primarily challenged High 5 Games’ monetization system, where players buy virtual chips that allow them to continue playing, even though winnings cannot be converted into real money. The plaintiffs argued that while players can’t win cash, they are still spending real money to extend their gameplay, which mirrors the concept of gambling under Washington’s laws. The court agreed, asserting that the virtual chips held value in extending playtime, making the transactions comparable to gambling.

This case is part of a wider trend in which social casinos and other digital gaming platforms using virtual currencies are facing increased legal scrutiny. While these apps claim to be “free-to-play” entertainment, plaintiffs argue they exploit addictive behaviors and skirt traditional gambling regulations.

The ruling against High 5 Games could have significant consequences for the social casino industry. For years, social casinos have generated billions of dollars in revenue by selling virtual currencies, but legal challenges are mounting as plaintiffs push for regulation. Other states, like Washington, have already ruled that virtual casino games with in-app purchases constitute gambling, setting legal precedents that could lead to further lawsuits and regulatory action.

If more courts follow suit and classify virtual currency transactions as gambling, game developers may be forced to alter their business models to comply with new legal standards. Regulators and lawmakers could also introduce new restrictions or oversight for digital gambling platforms, potentially reshaping the entire mobile gaming industry.

High 5 Games now faces a critical decision: appeal the jury’s verdict or comply with the ruling. Either way, the decision marks a significant moment in the ongoing debate over social casino apps and their place in the legal landscape of online gambling.