In what a law firm is calling the first-ever verdict against an online social casino, a Washington state jury has ordered High 5 Games to pay $24.9 million in damages to players in the state.
The decision comes eight months after a court ruling last June determined the company’s social casino gaming platforms High 5 Casino and High 5 Vegas constituted online gambling, which is illegal in the state. Like other social casinos, High 5 Games lets customers play with digital tokens but allows users to pay for additional tokens with real money.
The damages decision comes seven years after player Rick Larsen filed the suit, in which he alleged that the apps promoted illegal gambling by requiring players to purchase additional chips using real money. High 5 argued that players could opt to use the free coins they receive upon registration and are not required to spend real money as they are periodically awarded more promotional coins.
Last week, the jury found that High 5 customers represented by the class action lawsuit had suffered nearly $18 million in damages. The jury also awarded additional damages of approximately $7 million.
High 5 went fishing for “whales”
Evidence presented at trial alleged that High 5 deliberately targeted state residents who were addicted to high-stakes gambling by luring them back to the social casino gaming through incentives. High 5 employees allegedly referred to these consumers as “whales.” At least one such gambler who told High 5 she was addicted and needed her account shut off was given promotional coins to play more.
The release noted that many members of the class lost hundreds of thousands of dollars in the online casino and at least one lost more than a million dollars.
Law firms Edelson PC and Tousley Brain Stephens PLLC said in a release that the verdict is “the first trial in the years-long fight by consumers” represented by the firms to hold social casino operators accountable.
“Today’s verdict sends a clear message: online casinos that exploit consumers under the guise of ‘social gaming’ will be held accountable,” said Cecily Jordan, partner at Tousley Brain Stephens. “Ordinary people who have lost their life savings in these apps now have a jury vindicating them.”
Lawyers target “big tech” giants
In the release, the law firms said that “the next front in the battle” will be looking to hold big tech giants accountable for their perceived role in propagating and profiting from social casinos.
Edelson currently serves as lead counsel in multi-district litigations against Amazon, Meta, Google and Apple. The release notes that these companies are accused of acting as “bookies” by arranging payments between consumers and the casinos and taking a slice of the money gambled as commission.
“Big Tech isn’t just standing by—they’re cashing in,” said Todd Logan, partner at Edelson PC. “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.”
SBC Americas reached out to High 5 Games and they declined to comment on the judgment.
