High 5 Games regains Conn. license, but halts sweeps in state

In a landmark decision, the Connecticut Department of Consumer Protection (DCP) has reached a settlement with High 5 Games, marking a significant move against unregulated sweepstakes casinos. This settlement, however, does not imply any admission of liability on the part of High 5 Games.

Following a summary suspension issued by the DCP due to extensive illegal gambling activities, High 5 Games has agreed to halt operations of its online casino in Connecticut. This resolution comes nearly three months after allegations of violations were first levied against the company.

As part of a comprehensive settlement established with the DCP, High 5 Games will pay a fine of approximately $1.5 million, as announced on Thursday. While operations of High 5 Casino in Connecticut will cease, the DCP reinstated the company’s online gaming service provider license effective May 22.

Although High 5 Games retains licensing to provide gaming products within the state, High 5 Casino itself is unlicensed. Operating as a licensed supplier since 2021, High 5 Games delivers gaming content to well-known platforms like FanDuel and DraftKings. This discrepancy highlights the ongoing challenges within the gambling sector, where licensed entities can face consequences due to the unregulated activities of sweepstakes platforms. The DCP’s charges against High 5 Games in March are notable as this marks the first instance of a state pursuing criminal charges against a sweepstakes casino in the United States.

No Admission of Liability

The six-page settlement, formalized on May 22, comprises an Assurance of Voluntary Compliance (AVC), a legally binding agreement employed in cases with consumer protection allegations. The DCP’s order indicated that High 5 Games infringed upon two Connecticut statutes by unlawfully operating the unlicensed platform over a 25-month span, resulting in 1,065 customers making deposits exceeding $3.1 million.

Despite High 5 Casino’s prior notification to the DCP regarding its closure statewide, findings revealed the platform’s continued operation via geolocation manipulation.

Importantly, the settlement is explicitly stated to not represent an admission of liability or wrongdoing by High 5 Games. The company had employed a dual-currency system, utilizing mechanisms to reward users with virtual coins.

On sweepstakes sites like High 5 Casino, customers receive “virtual coins” at no cost, a model distinct from “virtual cash” that could be converted into real-money prizes. This distinction has drawn criticism from consumer advocacy groups, who argue that such mechanisms tempt customers into deposits at unregulated sweepstakes sites.

Recent legislative actions reflect a growing trend; Montana has established itself as the first U.S. state to ban online sweepstakes casinos outright, while Louisiana’s House of Representatives is advancing a bill aimed at prohibiting unregulated online casino sweepstakes.

In Connecticut, the Senate unanimously passed a similar legislation on May 23, which now awaits deliberation in the House as the legislative session approaches its conclusion.

Of the $1.5 million settlement, High 5 Games will pay $643,000 in restitution to consumers adversely affected by High 5 Casino. Additionally, nearly $800,000 will go towards consumer complaint resolution programs, education, protection enforcement, and associated litigation costs, as specified by the DCP.

“This case exemplifies the diligent efforts of our gaming division to uphold a fair, safe, and legally compliant gaming environment in Connecticut,” stated DCP Commissioner Bryan Cafferelli.

To remediate the situation, High 5 Games has committed to implementing robust geofencing measures to ensure that users physically located in Connecticut cannot access its platform. Furthermore, the company has agreed to block users attempting to connect via VPNs or proxies—methods often used to mask physical locations. Moving forward, High 5 Games will refrain from reintroducing sweepstakes gaming platforms unless they conform to specific licensing requirements.

Across the United States, legislators are increasingly expressing concern that the sweepstakes model presents an avenue for unregulated operators to navigate around existing regulations and tax obligations—a factor that significantly contributed to the national attention this March order received.

High 5 Games previously conveyed its intent to collaborate with Connecticut regulators to ensure compliance and maintain the integrity of its gaming licenses. However, CEO Tony Singer has not responded to inquiries from industry outlets regarding the matter.