The operator of a popular social casino has to pay a settlement of $24.9m following the verdict in a class-action lawsuit in Washington.
High 5 Games faced allegations that its free-to-play games breached the state’s gambling laws and that it targeted big spenders who sometimes had gambling addictions. In one instance, a player asked the site to close their account and instead was offered free tokens to continue playing.
Social casinos like High 5 Casino allow users to play games like slots and table games without having to use real money. They can use a virtual currency that is not withdrawable, although people can buy tokens with real money if they wish.
plaintiffs lost over $18m playing on these sites
The jury heard how the plaintiffs lost over $18m playing on these sites; the additional $7m in the settlement was for statutory damages.
While social casino operators have faced dismissals in cases, they’ve tended to settle straight away. High 5 Games decided to fight the case in a trial.
The operators of app stores like Alphabet and Apple have also been on the receiving end of similar class-action suits as they allegedly act as intermediaries for illegal gambling.