High 5 Games has stopped operating in six states.
The online sweepstakes platform shut down operations in Connecticut, Delaware, New Jersey, Pennsylvania, Rhode Island, and West Virginia as of Feb. 18. This brings the total number of states that have banned the casino platform to 13.
High 5 Games amended its terms of service to explain to users what would happen going forward. Existing players have until March 14 to redeem any "sweep coins" they may have earned before all accounts are closed. Likewise, new users in the states listed on the terms and conditions page cannot open new accounts.
The closure of its operations in six U.S. states follows its closure in Canadian-regulated markets, where the sweepstakes casino announced that it would be freezing all new player registrations on Feb. 3, with all existing accounts being forced to close on Feb. 28.
Yet, despite its sweepstakes platform closing in these locations, High 5 Casino Classic Play will still be available to players.
High 5 Games to pay $25M lawsuit
A Washington jury recently ruled that High 5 Games must pay $24.9 million in damages to Washington players after the court found the sweepstakes operator guilty of violating state gambling laws.
Players in the Evergreen State lost up to $18 million and an additional $7 million in statutory damages after High 5 Games specifically targeted high-spending users – or "whale" players – by continuously offering them free promotional chips to keep them playing.
The jury found that one High 5 Games user requested that their account be closed amid fears of their gambling addiction getting out of control, but the online platform instead offered incentives for them to keep gambling.
In addition, plaintiffs argued that High 5 Games was prolonging the gaming experience by offering digital chips with no monetary value. While users could not withdraw real money from their wins, they still needed to spend real money to acquire virtual funds to continue playing the games. Thus, the jury declared that the chips did have monetary value to players.
Sweepstake casinos to face regulation in New Jersey bill
High 5 Games sweepstakes casino may be ceasing operations in New Jersey, but Garden State lawmakers have proposed Bill A5196, which, if passed, would legalize sweepstakes casinos. New Jersey assemblyman Clinton Calabrese put forward the bill in late January.
The Social and Promotional Games Association supported the legislation.
“The SPGA welcomes Assemblyman Calabrese’s bill. The SPGA and its members are advocates for clear regulations that enable transparent, innovative, and responsible social and promotional gaming experiences,” the Association said in a statement.
