Sweepstakes casino operator High 5 Games is closing its offerings in six states that have legalized online gaming.
Operators that offer services such as sweepstakes casinos, crypto casinos, and prediction markets are starting to come under increasing regulatory scrutiny as regulated operators pressure lawmakers to stem the growth of alternative products.
High 5 Casino Limits Access Amid Growing Push for Stricter Gambling Laws
High 5 Casino updated its terms and conditions this week. The new terms now read that: “High 5 Casino Sweeps play is only available to participants in the United States, including the District of Columbia, but excluding those in the states of Connecticut, Delaware, Idaho, Kentucky, Louisiana, Michigan, Montana, Nevada, New Jersey, Pennsylvania, Rhode Island, Washington, and West Virginia.”
Existing players have just under a month to play with existing currency, but no further purchases will be permitted, nor will new customers. An additional notice to players reads: “Attention to residents of Connecticut, Delaware, New Jersey, Pennsylvania, Rhode Island, and West Virginia regarding High 5 Casino Sweeps Play: As of February 18, 2025, (i) new player accounts will no longer be available and (ii) existing players will no longer be able to make purchases.”
It continues: “Existing players will be able to continue to play and redeem sweeps coins until March 14, 2025. All player accounts will be permanently closed after March 14, 2025. High 5 Casino Classic Play will continue to be available to residents of these states.”
Connecticut, Maryland, and Mississippi have considered the outright ban of sweepstakes casinos this legislative session.
New Jersey Assemblyman Clinton Calabrese has introduced an amendment that would treat sweepstakes casinos as internet gaming, bringing companies under the same regulatory regime as other digital gambling incumbents.
Sweepstakes casinos, where coins can be purchased and, in turn, redeemed for real-money prizes, are those facing regulatory scrutiny in multiple states. They differ from social casinos because the dual currency can be redeemed for tangible prizes. Crypto casinos are still at an infant stage, where legislators struggle to understand digital currencies, appropriate regulation, and crypto use cases.
A Washington jury recently ordered High 5 Games to pay $24.9 million in damages to state players. Plaintiffs brought the case against the company after a court ruling last year found that its social casino business model violated Washington’s gambling regulations.
$18 million of the damages related directly to money lost on the company’s social products, with an additional $7 million paid in damages.
Plaintiffs successfully argued that social casino chips held value because they allowed players to extend their playtime.
The court was provided with evidence showing that High 5 targeted customers who were at high risk of gambling-related harm. Those prone to losing significant amounts of money on the site were dubbed “whales” by the High 5 decision-makers.
Edelson PC and Tousley Brain Stephens PLLC, representing the plaintiffs, welcomed the news, claiming it as their first victory. They aim to “hold social casino operators accountable for the reality of their business operations.”
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