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The Connecticut Department of Consumer Protection Gaming Division has announced the suspension of High 5 Games’ state license, accusing the online gaming service provider of illegal activity.
High5Games develops and provides content for the two legal online gaming platforms in the state –DraftKings and Fanduel, which are affiliated with Foxwoods Casino and Mohegan Sun, respectively.
However, investigations revealed that High5Games was operating High 5 Casino, an illegal and unlicensed casino. The DCP also accused the company of marketing the platform as a legal ‘licensed’ casino. The casino accepted wagers from Connecticut residents, even those on the state’s Voluntary Self-Exclusion List, which was established to safeguard problem gamblers and promote responsible gambling.
“We are disappointed that a licensed gaming service provider took advantage of Connecticut consumers by operating an illegal casino platform. 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,” stated DCP Gaming Division Director Kris Gilman.
Players Lost Almost $1 Million
The DCP investigation uncovered that approximately 1,100 Connecticut customers deposited and gambled on the unlicensed High 5 Casino platform. 911 of the individuals reportedly lost a total of $937,938, with 108 having registered on the Voluntary Self-Exclusion List. These self-excluded players went on to lose around $300,000 on the illegal casino.
As the majority owner of High 5 Casino, High 5 Games is now facing 1,065 criminal charges for conducting illegal gaming activities. DCP Gaming Division criminal investigators are also pursuing criminal charges for multiple violations of Connecticut’s gaming laws, with each charge classified as a Class A misdemeanour, potentially resulting in up to one year of imprisonment and fines reaching $2,000.
In addition, the DCP plans to seek restitution for eligible users who lost money after being misled into believing that High 5 Casino was a legitimate form of gaming in the state.
“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,” stated DCP Commissioner Bryan Cafferelli. He also thanked the commission for their hard work in keeping the licensee accountable and encouraged residents to only play at regulated sites.
High 5 Legal Woes Continue
Effective immediately, the High 5 Casino license has been suspended, and the provider won’t be able to offer games to licensed casinos in the state. Both Fanduel and DraftKings would have to remove games supplied by the company.
This marks High 5’s second significant legal challenge in as many months, following a recent ruling in a class action lawsuit that ordered the company to pay $25 million due to allegations surrounding its social casino operations. The lawsuit claimed that High 5 Games’ online casino-style offerings amounted to illegal gambling under state laws.
Despite the company’s claims that its games were purely for entertainment and not actual gambling, the jury found these arguments unconvincing, holding High 5 Games liable for its practices.
With the suspension of its license and the hefty financial penalty, High 5 Games faces a challenging road ahead.
Source: Next.io
