High 5 Games Reacquires Connecticut License and Pledges to Cease Sweepstakes Statewide

Nearly three months after a Connecticut agency issued a summary suspension against High 5 Games due to allegations of rampant illegal gambling violations, the company has agreed to cease the operation of its online casino in Connecticut.

Under a comprehensive settlement with the state’s Department of Consumer Protection, High 5 Games has agreed to pay a fine of nearly $1.5 million, as announced by the agency on Thursday. While High 5 Games discontinued operations of High 5 Casino across the state, the DCP reinstated High 5 Games’ online gaming service provider license effective May 22.

Despite High 5 Games offering licensed gaming products throughout Connecticut, the state had not licensed High 5 Casino, an online platform. A licensed supplier in the state since 2021, High 5 Games provides licensed gaming content to both the FanDuel and DraftKings online casino sites. There is a significant disparity between High 5 Games, a licensed supplier in Connecticut, and High 5 Casino, an unlicensed sweepstakes operator. When the DCP issued charges against High 5 Games in March, it was reportedly the first time a state brought criminal charges against a US sweepstakes casino.

### No admission of liability

In a six-page settlement dated May 22, the DCP outlined the terms of a so-called Assurance of Voluntary Compliance with the company. An AVC is a legally binding agreement typically utilized in cases with allegations of consumer protection violations. According to the order, over a 25-month period through this March, the company violated two Connecticut statutes by illegally operating the unlicensed platform.

During the period, 1,065 customers made at least $3.1 million in deposits, as found by the DCP investigation. Although High 5 Casino informed the DCP in February that it planned to discontinue service statewide, state investigators determined that the platform remained operational through a simple geolocation switch.

The settlement is not considered an admission of liability or a violation of law for any purpose, according to the state. The company operated a dual-currency model with various mechanisms for awarding customers with coins for game use.

A sweepstakes site such as High 5 Casino will offer customers “virtual coins” free of charge. The coins differ from “virtual cash,” which is redeemable for real money prizes. Across the gambling industry, several consumer protection advocacy groups have been critical of the model due to enticements that tempt customers to make deposits with sweepstake sites.

Earlier this month, Montana made history when it became the first US state to explicitly ban online sweepstakes casinos. Then, this week, a bill prohibiting unregulated online casino sweeps advanced in the Louisiana House of Representatives for a third reading.

Back in Connecticut, the Senate passed a version of a ban on May 23 by a unanimous 36-0 vote. The bill now heads to the House ahead of next week’s conclusion to the state legislative session.

### Remedial measures

Of the $1.5 million settlement, High 5 Games agreed to pay $643,000 in restitution to consumers who lost money to High 5 Casino. The company will also pay nearly $800,000 for consumer complaint resolution programs, consumer education, consumer protection enforcement, and litigation, as communicated by the DCP.

“This case is just one example of the hard work our gaming division does to ensure a fair, safe, and legal gaming market in Connecticut,” stated DCP Commissioner Bryan Cafferelli.

Among the remedial measures, High 5 Games agreed to block users physically located in Connecticut through its current level of geofencing. In addition, the company agreed to block users who attempt to use VPNs or proxies from accessing the High 5 Casino platform. Typically, a user can employ a VPN to mask their physical location. The company also agreed not to reintroduce platforms with sweepstakes games unless it meets certain licensing standards.

There is growing sentiment among legislators across the country that the sweepstakes model provides a loophole for unlicensed operators to enter a market without facing regulatory and tax burdens, one of the major factors why the March order garnered national attention.

At the time, High 5 Games stated that it planned to cooperate with Connecticut regulators to resolve the matter and maintain the integrity of its gaming licenses.

High 5 Games CEO Tony Singer did not respond to a request for comment.

Months after becoming the first state agency to issue criminal charges against a sweepstakes casino, the Connecticut DCP settled with High 5 Games. The settlement is not considered an admission of liability.