The Connecticut Department of Consumer Protection (DCP) Gaming Division has suspended the gaming license of online casino High5Games following an investigation that revealed the company was running an unlicensed online casino that is not sanctioned for operation in the Constitution State.
High5Games has now ceased operations in 13 U.S. states.
The DCP added that High5Games defrauded High5Casino into appearing to be a licensed, legitimate business. An investigation showed that the website not only took bets from Connecticut residents but also allowed those on Connecticut's Voluntary Self-Exclusion List to play, violating state law. The self-exclusion program aims to help problem gamblers by excluding them from access to online gaming websites.
Connecticut law only allows two operators to accept wagers on online casinos: FanDuel, in partnership with Mohegan Sun, and DraftKings, which operates with Foxwoods Casino. The DCP determined that High5Casino circumvented these provisions illegally, causing players to lose large amounts of money.
The DCP found that 1,100 Connecticut residents had made deposits and placed bets on High5Casino, and 911 players lost more than $900,000. Another 108 self-excluded players lost nearly $300,000 betting on the website.
High5Games is now also facing serious legal consequences, with 1,065 criminal charges of running an illegal gaming business filed against the company. Each offense is a Class A misdemeanor in Connecticut, punishable by up to one year in prison and a fine of up to $2,000.
The company might be subject to steep legal and monetary penalties if found guilty of all the charges. This is the first reported instance in the U.S. where a sweepstakes online gambling operator has faced criminal charges.
High5Games No Longer Welcome in Connecticut
In response to such breaches, the DCP Gaming Division has suspended High5Games' license immediately, preventing the company from offering gaming content to licensed platforms in the state.
State governments have been stressing the importance of gambling on licensed websites to protect consumers and provide assurance that money can be recovered in case of a dispute. The DCP has once again warned that unauthorized gaming websites pose consumer risks, particularly regarding fund security and game fairness.
“We are disappointed that a licensed gaming service provider took advantage of Connecticut consumers by operating an illegal casino platform. It is difficult to recover funds for consumers from illegal platforms. We remind consumers that gambling on licensed platforms is the only way to guarantee recovered funds in the event of an issue with a game or platform,” said DCP Gaming Division Director Kris Gilman.
The DCP has indicated that investigations of unlicensed gaming operators will continue as part of broader efforts to promote compliance with state law. With increasing regulatory pressure, other online gaming operators may face increased scrutiny to prevent such violations.
The suspension of High5Games' license in Connecticut follows other legal trouble for the company.
Recently, a jury determined that High5Games owes $25 million in a class-action case in Washington State concerning the unauthorized use of its social casino games. The case alleged that the company engaged in illegal business practices, further questioning compliance with gaming law.
