State regulators in Connecticut are pressing more than 1,000 criminal charges against sweepstake gaming state High 5 Casino. Additionally, the Department of Consumer Protection (DCP) Gaming Division is suspending parent company High 5 Games’ license in the state as a service provider of online slot content.
CT regulators say only legal online casinos are DK, FD
In a release, the Department of Consumer Affairs affirmed its stance that the only two legal online casino sites in the state are FanDuel and DraftKings, which are run in tandem with the Mohegan Sun and Mashantucket Pequot tribes, respectively.
“Thank you to our Gaming Division team for their hard work to hold this licensee accountable,” said DCP Commissioner Bryan T. Cafferelli. “It is a privilege to hold this license, and we expect our credential holders to take that responsibility seriously. High5Games took advantage of their credential to mislead consumers into believing they were participating in gaming on a legal platform when, in fact, they were breaking the law. We remind consumers that there are only two licensed online casinos in Connecticut — DraftKings/Foxwoods and FanDuel/Mohegan Sun — and if you choose to participate in online gaming, you should only utilize one of the legal platforms licensed to operate in our state.”
In a statement in response to the allegations, High 5 Games reasserted its commitment to compliance and responsibility.
High 5 Games has always upheld the highest regulatory standards and remains committed to compliance across all jurisdictions in which we operate. Throughout our 30-year history as an established gaming brand in the U.S., we have worked closely with regulators to ensure responsible and transparent business practices, offering an experience to our loyal business partners that is both enjoyable and safe,” the statement read.
“We pride ourselves on the games we deliver as a B2B supplier to operators in all regulated markets in the United States, Canada, and Latin America. Honor, trust, and legal compliance will always be cornerstones of our business. We treasure our relationships with all iGaming operators as clients, and we safeguard these relationships with extreme care. We will always continue to work hard to bring the highest value of content to our partners in a reliable, safe way.”
High 5 left Connecticut but DCP could still access site
High 5 Casino announced last month that it would cease offering its products in the six states where online casino sites are regulated and legalized, including Connecticut. DCP previously sent a cease and desist to High 5 Casino competitor VGW, asking the company to leave the state in October 2024.
Despite saying it was withdrawing from the state, DCP investigators said in their suspension summary that they were able to circumvent the means put in place to block in-state customers by changing the state the email address was associated with.
According to DCP, more than 1,100 Connecticut residents signed up to play on High 5 Casino. Accordingly, there will be 1,065 charges of conducting illegal gambling activity, considered a felony in the state. Each charge carries a potential sentence of up to a year in jail and a fine of up to $2,000 per count.
A Washington court recently ruled that High 5 Casino needs to pay out roughly $25 million in damages related to its social casino activity in the state, which the court deemed illegal gambling.
“We are disappointed that a licensed gaming service provider took advantage of Connecticut consumers by operating an illegal casino platform,” said DCP Gaming Division Director Kris Gilman. “It is difficult to recover funds for consumers from illegal platforms. We remind consumers that gambling on licensed platforms is the only way to guarantee recovered funds in the event of an issue with a game or platform.”
Suppliers getting caught up in sweepstakes debate
While DCP believes the law is clear regarding sweepstakes casinos, lawmakers are currently debating a bill that would explicitly outlaw any site that offers real or simulated casino or sports betting without a license issued by the state.
As the debate around sweepstakes operators intensifies, suppliers like High 5 Games are getting caught in the crosshairs. Legislation in states including Maryland would criminalize not just sweepstakes operators but also suppliers and affiliates that work with these sites.
Many suppliers, ranging from payment processors to geolocation tech, work in both sectors, and for U.S. affiliates, sweeps partnerships are some of the most lucrative at the moment.
A recent lawsuit that named Google and Apple in addition to High 5 and another sweeps operators attempted to hold the tech giants accountable since the companies’ payment options worked with the sites. However, that lawsuit was voluntarily dismissed by the plaintiff last week.
As for what the criminal charges and license suspension could mean for High 5 Games in other states, there is potential for ramifications beyond Connecticut. Many state vendor and supplier licenses are contingent upon compliance in other states, which could be called into question with these actions.
