High 5 Returns to Connecticut After License Dispute, with Smaller Menu
High 5 Games has resumed operations in Connecticut following a regulatory dispute with the state's Department of Consumer Protection (DCP) that led to a temporary suspension of its license. The return, however, comes with significant limitations, including a reduced scope of offerings and a substantial financial settlement.
LISTEN TO THIS ARTICLE:The controversy centered on the company's operation of High 5 Casino. The DCP had determined that it was an unlicensed online sweepstakes platform that was determined to be in violation of Connecticut's gambling statutes.
Related: Connecticut Regulator Suspends High 5 Games LicenseIn March, the DCP took the unprecedented step of issuing criminal charges against High 5 Games for allegedly facilitating illegal gambling through the High 5 Casino site. The charges marked the first instance in which a US state pursued criminal action against a sweepstakes casino operator. While High 5 Games held a valid supplier license since 2021 and continued to provide gaming content to licensed platforms like FanDuel and DraftKings, the High 5 Casino platform was not licensed to operate in the state.
As part of a six-page settlement agreement dated May 22, High 5 Games agreed to pay nearly $1.5 million in penalties and restitution. The settlement, an Assurance of Voluntary Compliance (AVC), is legally binding but does not constitute an admission of wrongdoing.
AVCs are often used in consumer protection cases where regulatory agencies seek to address potential violations without pursuing further litigation. The agreement specifies that over a 25-month period, the company operated the unlicensed High 5 Casino in a manner that contravened two Connecticut statutes.
During that period, state investigators determined that at least 1,065 customers deposited more than $3.1 million through the unlicensed platform. Although High 5 Casino notified the DCP in February of its intention to discontinue services in Connecticut, investigators discovered that the platform remained accessible through the use of a geolocation workaround. The company allegedly allowed continued access to Connecticut users by adjusting geolocation settings, undermining its claim of having ceased operations.
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High 5 Fine to Pay for Consumer Protection
Out of the $1.5 million settlement, High 5 Games will allocate $643,000 in restitution to affected customers. The remaining funds, close to $800,000, will support consumer protection enforcement, education initiatives, litigation expenses, and the resolution of consumer complaints.
As part of its remedial obligations, the company must now implement stricter geofencing to block access from within Connecticut. Additionally, it must detect and prevent users from accessing the site via virtual private networks (VPNs) or proxy services, which can obscure a user's physical location.
High 5 Games also committed to refraining from launching any sweepstakes-based gaming platforms in Connecticut unless those platforms meet state licensing standards. This decision aligns with a broader trend in the US, where legislators are taking a closer look at the legal ambiguity surrounding sweepstakes casinos.
The Connecticut Senate recently approved legislation aimed at banning unlicensed sweepstakes casinos. On May 23, the Senate passed the measure with unanimous support in a 36-0 vote, and the bill now awaits consideration in the House of Representatives as the legislative session nears its end.
Elsewhere in the country, states are following similar paths. Montana became the first state to enact a formal ban on online sweepstakes casinos earlier this month, and a bill to do the same in Louisiana has advanced to a third reading in the state's House of Representatives.
Despite the controversy, High 5 Games continues to provide licensed content to regulated platforms within Connecticut and other jurisdictions. The company emphasized its cooperation with Connecticut regulators and its ongoing commitment to preserving the integrity of its licensing agreements.
The DCP Commissioner, Bryan Cafferelli, acknowledged the settlement as a testament to the agency's efforts in maintaining a lawful and transparent gaming environment within the state.
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