Connecticut has suspended the license of High 5 Games, accusing the firm of operating an unlicensed casino and falling short in terms of social responsibility measures.
The Department of Consumer Protection (DCP) Gaming Division claims that High 5 marketed High 5 Casino as a licensed casino and accepted wagers from bettors in the state, including individuals who had signed up for the statewide Voluntary Self-Exclusion List.
In total, the investigation determined that 1,100 consumers made deposits and gambled on the platform. Of those, 911 customers lost an accumulative total of $937,938 and 108 individuals on the aforementioned self-exclusion list lost almost $300,000.
The DCP Gaming Division states that High 5 Games will be charged with 1,065 criminal counts of conducting illegal gaming activity in relation to violations of Connecticut’s gaming laws. Each charge is a Class A misdemeanor punishable by up to a year in jail and a maximum fine of $2000.
Additionally, the DCP will also “seek restitution” for eligible consumers who suffered a financial loss due to “being misled to believe that High5Casino was a legal form of gaming in Connecticut”.
Bryan T. Cafferelli, Commissioner of the DCP, commented: “Thank you to our Gaming Division team for their hard work to hold this licensee accountable,”
“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.”
He also reminded players in the state that currently only DraftKings and FanDuel are able to accept legal iGaming wagers through their respective partnerships with Mohegan Sun and Foxwoods Casino.
High 5 shuts sweeps operation in six states
High 5’s suspension in Connecticut follows the firm shutting down its sweepstakes casino offering in six states, including The Constitution State.
On February 18, High 5 Casino customers in Connecticut, Delaware, New Jersey, Pennsylvania, Rhode Island and West Virginia were informed that their accounts would be closed on 14 March and that it was no longer accepting new sweeps players.
However, High 5 Casino’s classic play remained available to customers in all states.
The order of suspension notes that following the 18 February announcement by High 5 Games, investigators were able to create an account on the platform while being situated in Connecticut through the ‘Log in with Google’ option once they changed the location of their email from Connecticut to Massachusetts.
Additionally, there was “no meaningful process to verify the account owner” during the sign up process on the High 5 Casino platform.
As a result of the suspension, any High 5 Games provided to FanDuel and DraftKings will be removed from the platforms immediately.
High 5 lose landmark legal case
High 5 Games has faced intense scrutiny regarding the legality and practices of its High 5 Casino offering.
Last month, a Washington court ordered High 5 Games to pay $24.94m in damages after it ruled that its social casino operated against the state’s gambling laws.
Although the operator argued that it had done nothing wrong, evidence shown to the jury alleged that High 5 had targeted high-risk customers in Washington that were prone to losing large amounts of money on its website.
This included one customer that had told High 5 Games that they had become addicted to gambling and needed their account to be restricted.
On a greater scale, the legality of the sweepstakes sector is also being questioned around the US.
Lawmakers in Maryland, Mississippi, New Jersey, Nevada and Florida are all currently considering legislation that may prohibit the vertical, despite the growing popularity of the sector.
High 5 Gaming is a member of the Social and Promotional Gaming Association (SPGA), a group formed last year to “highlight the well-established legality and legitimacy of social sweepstakes games, providing regulators, policymakers and consumers with a comprehensive understanding of these offerings.”
