A Washington jury has ordered social casino company High 5 Games to pay $24.9 million in damages to state players.
The plaintiffs brought the case against High 5 Games after a court ruling last year found that its social casino business model violated Washington gambling state regulations.
A social casino model allows players to play slot titles using virtual chips instead of cash. Typically, these games are free to play, but players have the option to buy additional chips should they run out.
Although virtual chips can not be converted into cash, plaintiffs argued they still held value because they allowed players to extend their playtime. The court and jury agreed, leading to a hefty fine.
High 5 must pay $24,940,366, comprised of $18 million in damages directly relating to money lost on the company’s products and an additional $7 million in damages.
High 5’s Targeting of “Whales”
Evidence provided to the jury showed that High 5 targeted customers classified as high-risk in the Evergreen State. These were classified as users prone to losing significant amounts of money on the site, dubbed “whales” by the social casino operator.
One user had told High 5 that they had developed a gambling addiction and needed restrictions applied to their account. Instead, the company was allegedly ‘lured back into gambling’ on the website with an offer of free tokens.
Edelson PC and Tousley Brain Stephens PLLC, the firm representing the plaintiffs, announced the verdict as its first victory in the years-long fight by consumers, aiming “to hold social casino operators accountable for the reality of their business operations: that they are illegal gambling operators preying on vulnerable gambling addicts.”
Industry-Wide Implications: What’s Next for Social Casinos?
The law firm revealed that over $650 million had been paid in settlements by social casino operators in other cases brought by Edelson and Tousley, avoiding a court hearing.
“Big Tech isn’t just standing by — they’re cashing in,” commented Todd Logan, partner at Edelson PC. He continued: “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. We will continue fighting to ensure Big Tech answers for its role in enabling and profiting from illegal gambling.”
Edelson serves as lead counsel in litigations against Amazon, Meta, Google, and Apple. The firm accuses them of acting as bookmakers in the business arrangement. They arrange the payments between consumers and the casinos and take a 30 percent commission.
Cecily Jordan, Partner at Tousley Brain Stephens, added: “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.”
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