Online Gambling Regulations and the High 5 Casino $1.5 Million Settlement in Connecticut

High 5 Games, LLC, has recently come to terms with a $1.5 million settlement to conclude Connecticut’s investigation into its operations.

Key Highlights

• Business Closure: High 5 Games has ceased its High 5 Casino operations in Connecticut.
• Financial Penalty: The company has agreed to pay a substantial sum to settle the probe.
• Licensed Provider: High 5 Games is a licensed B2B iGaming provider within Connecticut.

In March, Connecticut’s Department of Consumer Protection (DCP) suspended High 5 Games’ Online Gaming Service Provider license after discovering that the High 5 Casino operated without the necessary licensing. The investigation revealed that the casino had inaccurately identified itself as a social casino or free-to-play platform, while offering sweep coins that could be exchanged for cash—an outright violation of Connecticut’s online gaming laws.

The DCP confirmed that the issue of unregulated operations by High 5 Games required immediate action, especially as the Mohegan and Mashantucket Pequot tribes maintain a monopoly on online casino gambling in the state through partnerships with FanDuel and DraftKings.

License Restoration Terms

In exchange for discontinuing the High 5 Casino business in Connecticut, High 5 Games has had its Online Gaming Service Provider license reinstated as of May 22. The terms of the settlement include a payout of $643,000 in restitution to the consumers who lost money playing the unlicensed casino, in addition to almost $800,000 which will fund consumer complaint resolution programs, consumer education initiatives, and enforcement of consumer protection.

DCP Commissioner Bryan Cafferelli applauded the resolution, stating: “This case exemplifies our Gaming Division’s dedication to upholding a fair and safe gaming environment in Connecticut. We are delighted that the players who were misled into wagering on an unlicensed platform will be compensated.”

Kris Gilman, the director of the DCP Gaming Division, expressed satisfaction with the conclusion of the case, stating the High 5 Casino’s practices were detrimental to consumers through the misrepresentation of its licensing status.

If you’re looking to place a wager, Connecticut is the ideal state. We’re committed to ensuring the integrity of our licensed market, and when violations occur, we strive to rectify the situation for our consumers,” Gilman noted.

The settlement also addresses potential criminal charges against the company’s executives. In March, DCP mentioned that they were considering over 1,000 criminal counts related to illegal gambling activities. Each of these counts could lead to a Class A misdemeanor, resulting in potential imprisonment of up to one year and fines reaching $2,000.

Impacted Players

Following the suspension of High 5 Games’ business-to-business licensing, the DCP revealed significant repercussions for the players involved. An estimated 1,100 people in Connecticut had made financial deposits into the unregulated casino, of which 911 individuals experienced losses totaling nearly $938,000. Alarmingly, over 100 of these users had previously placed restrictions on their access to other licensed online casinos like DraftKings and FanDuel via the Connecticut Voluntary Self-Exclusion List.

Conclusion

This incident notably illustrates the importance of operating within the legal frameworks established for online gambling. Players are urged to engage only with licensed platforms, ensuring their gaming experience is safe and secure.

By reinforcing regulations, Connecticut aims to protect its consumers and maintain the integrity of its gaming industry.