Connect with us

WINNING COMBINATION - SOFTSWISS develops innovative iGaming software products for online casino, sports betting, and beyond. Our products can be delivered as standalone solutions or combined into a single iGaming Platform.

The future of sports betting: BETBY sportsbook is focused on innovation through deep industry knowledge, state-of-the-art software & endless customization possibilities.

Gambling in the USA

Four gaming companies hit with online gambling lawsuits over ‘free-to-play’ casino games

Published

on

gaming companies hit with online gambling lawsuits
Photo credits: Stefan Zaklin—Getty Images
Reading Time: 3 minutes

A spate of lawsuits filed over the last few days target online gaming companies, alleging their digital casino offerings constitute illegal gambling under Washington state law.

These lawsuits follow a ruling last month from a federal appeals court that found Big Fish Games’ casino games violate Washington state law governing online gambling. The latest lawsuits, four in total filed late last week and early this week, target “free-to-play” casino games from Huuuge Games, DoubleDown Interactive, High 5 Games and Playtika.

Each company offers a series of games typically found in casinos, like slots, blackjack and roulette, that use virtual chips. The chips have no monetary value themselves, but players can only play as long as they have chips. If they run out, they have to wait until the game offers more free chips or they can buy hundreds of thousands of chips for a couple bucks and jump back in.

These cases, along with the Big Fish case that preceded them, could have major implications for the casual games market. A lot of popular games today use in-app purchases as a revenue driver, and it appears there is a burgeoning backlash against that.

The suits, filed in U.S. District Court in Seattle and Tacoma, use similar language and arguments in their filings. Three are from the same plaintiff, and the same law firm and lawyers — Janissa A. Strabuk and Cecily C. Shiel of Seattle-based Tousley Brain Stephens — lead the legal teams in the lawsuits.

We’ve reached out to the companies and lawyers involved in the lawsuits and will update this story if we hear back.

The suits center around the same arguments as the Big Fish case. They allege that the chips, though they are not worth any money on their own, represent “something of value,” a vague clause within Washington state law governing gambling. The chips have value, the suits argue, because they are vital to continue playing the game.

Double Down Casino games are illegal gambling games because they are online games at which players wager things of value (the chips) and by an element of chance (e.g., by spinning an online slot machine) are able to obtain additional entertainment and extend gameplay (by winning additional chips),” according to one of the suits.

The plaintiffs seek class action status for their lawsuits. They are also asking that the gaming companies be barred from “continuing the challenged conduct” and for damages.

Sean Wilson, the plaintiff in three of the lawsuits claims to have spent only about $20 on chips for casino games from Huuuge, High 5 and Playtika. Plaintiff Adrienne Benson claims to have lost about $1,000 on DoubleDown games.

Casual games like the casino offerings are big business. The lawsuits cite a figure from JP Morgan saying that these free “games of chance generated over $3.8 billion in worldwide revenue,” in 2016, with expected growth of 10 percent annually.

Online gambling lawsuits are fairly common, from small mobile game-makers to gaming giants like Valve. The game companies have come out victorious in past cases, but the Big Fish ruling last month was an exception.

That broad “something of value” phrase in Washington law made the difference in the Big Fish case. There are no federal laws governing online gambling, meaning each case is subject to a different set of state laws.

The similarity between micro-transaction based games of chance and games of chance found in casinos has caused governments across the world to intervene to limit their availability,” according to one of the lawsuits. “Unfortunately, such games have eluded regulation in the United States. As a result, and as described below, Defendant’s Huuuge Casino has thrived and thousands of consumers have spent millions of dollars unwittingly playing Defendant’s unlawful games of chance.”

The Big Fish case still has a long way to go before it’s settled, but it appears that the floodgates have opened for people to challenge mobile gaming companies under Washington law. Only one of the gaming companies named in the suit has a Washington presence.

Venkat Balasubramani, an attorney at Focal PLLC who is not involved in any of these cases but is representing gamers in a California case focused on violations of false advertising and consumer laws, told GeekWire following the Big Fish ruling last month that the lack of federal laws throws a wrench into this online gambling debate.

The fact that it’s state law is a wrinkle because it’s not easy for Washington to reach outside its borders and enforce Washington law against foreign companies,” Balasubramani said. “That’s always a tricky issue in the legal arena.”

 

Source: geekwire.com

George Miller started his career in content marketing and has started working as an Editor/Content Manager for our company in 2016. George has acquired many experiences when it comes to interviews and newsworthy content becoming Head of Content in 2017. He is responsible for the news being shared on multiple websites that are part of the European Gaming Media Network.

Advertisement
Advertisement

Advertisement

EveryMatrix at ICE 2025 in Barcelona: Explore advanced iGaming technologies and solutions, including Casino, Sports, Platform, Managed Services, and more. Visit EveryMatrix at stands 2G32, 5K10, and K36.

Advertisement

Launch your iGaming business swiftly and effortlessly with our comprehensive turnkey solutions

Trending (Top 7)

Discover the Magic of EuropeanGaming.eu – Your Gateway to the Gaming Universe

At the heart of the ever-evolving gaming and gambling industry lies EuropeanGaming.eu, a trailblazing online platform that has become the go-to destination for industry professionals, enthusiasts, and stakeholders. As part of HIPTHER, we’re redefining how the gaming world connects, informs, and inspires.

More Than News – A Hub of Insight and Innovation

Reaching over 300,000 readers monthly, EuropeanGaming.eu goes beyond headlines to deliver compelling stories, expert insights, and the latest industry news. From regulatory updates and compliance breakthroughs to the pulse-pounding world of esports and technological advancements, we provide comprehensive coverage of the topics that matter most:

  • Online and Land-Based Gaming
  • Betting and Esports
  • Regulatory and Compliance Updates
  • Cutting-Edge Technology in Gaming

Whether it’s daily news, exclusive interviews with industry leaders, in-depth event reports, or press releases that set the tone for the future, our content resonates with a global audience while maintaining a focus on Europe’s dynamic gaming market.

Bringing the Industry Together

Our impact doesn’t stop at digital content. EuropeanGaming.eu is a proud host of virtual meetups and industry-leading conferences that spark dialogue, foster collaboration, and drive innovation. Through detailed reports and live events, we create a space where operators, suppliers, regulators, and professional services come together to shape the future of gaming.

Why EuropeanGaming.eu?

At HIPTHER, we believe in empowering the gaming community with knowledge, connection, and opportunity. EuropeanGaming.eu embodies this spirit by serving as a one-stop resource for the latest trends, market developments, and global perspectives. Whether you’re an industry veteran, a rising operator, or a gaming enthusiast, this is where you find the stories that drive progress.

Get In Touch

Let’s shape the future of gaming together!


Copyright © 2015 - 2025
European Gaming is proudly part of HIPTHER. Registered in Romania under Proshirt SRL, Company Number: 2134306, EU VAT ID: RO21343605.
Office Address: Blvd. 1 Decembrie 1918 nr.5, Târgu Mureș, Romania

Join us as we celebrate a decade of delivering excellence and embrace the magic of what’s to come in 2025 and beyond!

We are constantly showing banners about important news regarding events and product launches. Please turn AdBlock off in order to see these areas.