【Hacksaw Gaming Stockholm】Connecticut Shuts Down High 5 Games

Following a recent investigation, Connecticut has decided to suspend the iGaming license of High 5 Games.

A few days ago, the Connecticut Department of Consumer Protection Gaming Division issued a statement stating that it had suspended the license of the iGaming provider High 5 Games.

Currently, the supplier delivers content to FanDuel and DraftKings in the Constitution State. However, the investigation found that the company ran an illegal online casino product, High 5 Casino.

Misleading Local Players

Through its investigation, DCP found that High 5 Games advertises its offshore gambling services as a ‘licensed’ casino. The iGaming brand even accepted wagers from local bettors, including individuals who had previously registered on the state's Voluntary Self-Exclusion List.

At the moment, Connecticut runs a private iGaming market. However, only two operators are allowed to offer and take bets from locals: FanDuel and DraftKings. They work closely with Mohegan Sun and Foxwoods Casino, respectively.

DCP’s investigation uncovered that approximately 1,100 residents of Connecticut have engaged with the unlawful High 5 Casino platform by making deposits and placing bets. Of those 1,100, 911 users wagered and lost US$937,938, while 108 of the total had signed up for the state’s Voluntary Self-Exclusion List.

According to the gambling regulator, users on that Voluntary Self-Exclusion List forfeited around $300,000 on the unlicensed platform.

Facing Illegal Gambling Counts

Following Connecticut’s suspension of the gambling site, High 5 Games, the majority owner of High 5 Casino, will face 1,065 criminal counts for operating illegal gambling activities in the state.

Gaming Division Criminal Investigators will now pursue criminal charges for all of the provider’s violations of the state’s gambling law. Each charge will constitute a Class A misdemeanour, and the penalty will be up to a year in prison and a monetary fine of up to US$2,000.

In its statement, DCP shared that it will also seek compensation for eligible gamblers who lost money after being deceived that High 5 Casino was licensed to operate in Connecticut’s iGaming market.

DCP Official Comment on the Matter

DCP Commissioner Bryan T. Cafferelli thanked the Gaming Division for its efforts in holding the private provider responsible for its illicit gambling operations. Here’s what else he said in the press release:

“It is a privilege to hold this license, and we expect our credential holders to take that responsibility seriously. High 5 Games 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 used the opportunity to remind local bettors that there are only two licensed online casino sites in Connecticut: DraftKings with Foxwoods and FanDuel with Mohegan Sun. That’s why he urges everyone who wants to engage in iGaming to do so only on the two state-licensed platforms.

Meanwhile, DCP’s Gaming Division Director Kris Gilman said the following on High 5 Games’ recent violation of state gaming law:

“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.”

Per the DCP statement, High 5 Games’ licence to supply iGaming content to operators in Connecticut has been suspended, effective immediately. Following this announcement, both FanDuel and DraftKings have removed products provided by High 5 Games from their websites.

Washington Rules Against High 5 Games

This is not the first time High 5 Games has been in legal trouble. Just over a month ago, a federal jury in Washington ruled that it must pay US$25 million in damages.

The lawsuit alleged that the company conducted illegal gambling under state law via its social gaming brands, High 5 Casino and High 5 Vegas. These social gambling platforms offer games of chance where players must use real money to purchase digital currency.

However, the lawsuit claimed that these virtual coins still allowed people to play games of chance, such as slots and casino-style games, and that, therefore, they were a form of gambling.

Following an investigation by Washington officials, it was determined that users of the High 5 Games’ social brands lost approximately US$18 million, which added an extra US$7 million in statutory damages.

Additionally, the lawsuit revealed that the iGaming provider gave preferential treatment to high-spending users, providing them with free promotional coins as an incentive to keep playing. It was also reported that when a user sought to close their account due to gambling-related issues, they were offered incentives to remain in the game.

Washington’s ruling is yet another instance in which a jurisdiction has chosen to clamp down on social gambling operators, also referred to as sweepstakes casinos. However, unlike other cases, High 5 Games wished to go to trial, which the company ultimately lost.