High 5 Games has resolved a dispute with Connecticut’s Department of Consumer Protection (DCP) over its running of an “unlicensed online casino,” named High 5 Casino.
The sweepstakes operator has consented to a $1.4 million settlement. Out of this amount, $643,424 will be allocated to reimburse 794 Connecticut customers who incurred losses at High 5 Casino. Any unclaimed funds will be forwarded to the state.
An additional $500,000 will be channeled to Connecticut’s Consumer Protection Enforcement Fund to support programs focused on consumer complaints, education, enforcement of consumer protection laws, and related litigation.
The DCP has also designated $294,173.94 as “disgorgement.” This amount represents the total purchases minus redemptions by users on the Connecticut Voluntary Self Exclusion list, which will also benefit the Consumer Protection Enforcement Fund.
High 5 Games had its license suspended in March by the regulator following a DCP investigation. The investigation revealed that High 5 Casino was misleadingly presenting itself as a licensed online casino and was accepting bets from customers, unlike DraftKings and FanDuel, which operate the state’s only licensed online casinos in partnership with Foxwoods Casino and Mohegan Sun.
Following this, High 5 Games faced 1,065 criminal counts of illegal gaming activity from the DCP. Despite these charges, the operator committed to cooperating with the DCP, which led to the settlement.
DCP Commissioner Bryan T. Cafferelli stated, “This case underscores the dedicated efforts of our Gaming Division to secure a fair, safe, and legal gaming market in Connecticut. We are pleased that Connecticut consumers who were deceived into making bets on an unlicensed platform will be compensated, and that the company has ceased its unlicensed casino operations in Connecticut.”
By settling, High 5 Games has forfeited any right to judicial review, compliance meeting, or appeal hearing.
Additionally, High 5 Games has ceased the operation of its platform and its license as a games supplier has been reinstated, effective from May 22.
Kris Gilman, DCP Gaming Division director, expressed satisfaction with the investigation’s outcome and how it facilitated the reimbursement of consumers affected by the deceptive marketing practices of the unlicensed sweepstakes casino. “Connecticut is an exemplary state for gambling. We diligently ensure fairness in our licensed market and address any infractions to protect consumers,” Gilman noted.
Moreover, High 5 Games received a cease-and-desist order from Maryland in the same month its Connecticut license was suspended. Further comments from High 5 Games concerning these developments have been requested.