High 5 Casino ceased operations in New Jersey in February. Despite that, the state’s loss-recovery statute allows individuals who have lost money or property from illegal gambling to seek recovery of their losses within six months.

US gaming law and sports betting lawyer Dan Wallach brought the lawsuit to light through a post on X. According to the post, J. Meyers Esq, a Denville, New Jersey law firm, brought the suit in the Bergen County Superior Court.

The law firm seeks to recover losses suffered through gambling by Mitchell Dallas from Kansas City, Missouri, Julian Bargo from Cliffside Park, New Jersey, and “John/Jane Does 1 through 100, an unknown number of individuals, residency unknown.”

The New Jersey lawsuit comes a few months after a Washington jury ordered High 5 to pay $24.9 million in damages to players in the state.

CT Suspended High 5 Games’ License, Could NJ Do the Same?

High 5 Entertainment is in a unique situation compared to other sweepstakes casino operators. The company serves as a content supplier for regulated retail and online casinos through High 5 Games. Some of the most popular games by High 5 Games include the DaVinci Diamonds slot series.

High 5’s unique situation landed the company in hot water in Connecticut. In March, the state’s Department of Consumer Protection Gaming Division suspended the content supplier’s license as a result of the company operating an illegal gambling activity via High 5 Casino.

Shortly after, slots like DaVinci Diamonds Extreme, Beti the Yeti, Secrets of the Forest, and Dangerous Beauty disappeared from Connecticut casino libraries.

After the license suspension, High 5 Games committed to compliance and working with regulators. Subsequently, the company settled with the regulator for nearly $1.5 million at the end of May, and had its supplier license reinstated.

That sum included $643,000 in restitution to customers who lost money on High 5 Casino. Additionally, nearly $800,000 would be allocated towards consumer complaint resolution programs, education, protection, enforcement, and litigation.

Given that High 5 Games holds a supplier license in New Jersey as well, the state could follow Connecticut’s lead. Although the New Jersey Division of Gaming Enforcement has not taken an active role against sweepstakes platforms, mounting regulatory pressure is building.

An active bill to ban sweepstakes casinos, endorsed by the New Jersey Responsible Gaming Task Force, could lead to higher pressure on the sector, particularly on High 5 Games.

High 5 Casino Has Exited all iGaming States

Scrutiny of sweepstakes casinos has been building across the US. This year alone, lawmakers from a dozen states introduced legislation to ban the platforms. So far, only Montana has passed a ban. However, others, such as Louisiana, Nevada, and Connecticut, are just a governor’s signature away from a ban.

While it has faced issues in Connecticut and now New Jersey, High 5 Casino has been one of the most active platforms in terms of exiting states with potential bans or following regulators’ requests.

In February, the platform exited Connecticut, Delaware, New Jersey, Pennsylvania, Rhode Island, and West Virginia. What’s notable about these states is that they have all legalized real-money online casinos. High 5 Games holds a content license in each of them.

A month later, High 5 Casino was also among a large number of sweepstakes operators that exited New York in anticipation of a potential ban.

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The case has been put forward by New Jersey resident Julian Bargo, who revealed that he had lost more than $1,000 during play at a range of sweepstakes casinos.

Bargo brought forward Racketeer Influenced and Corrupt Organisations (RICO) Act charges as part of the case, over enabling the operations of the sweepstakes casinos at the centre of the charge. 

High 5 Casino, McLuck, Wow Vegas and CrownCoins Casino are all named as defendants in the case for allegedly offering an illegal gambling site.

Furthermore, the RICO also looks at the payment journey, with it including Apple, Apple Pay, Google and Google Pay.

Bargo alleges that sweepstakes casinos act without regulation or oversight and have “succeeded in misleading regulators about the true nature of their operations for far too long”.

Including Google and Apple in the case, Bargo cited that both stores benefit from a cut from profits of apps housed in their stores, including these social casinos.

Furthermore, at the centre of the claim is also the importance and prevalence of promotions that are “misleading and intended to deceive patrons into believing these sites are free to play”, according to the allegations. 

It comes following a backdrop of regulators, such as those of Michigan and Ohio, that have taken a hard stance on social casinos and other forms of unregulated gambling and sent several effective cease and desist letters to sweepstakes operators like those named in the suit.

In his claim, Bargo did acknowledge that the issue has sidelined several class action lawsuits against sweeps operators–binding arbitration.

Recent comments from the American Gaming Association (AGA) urged the need for more regulation of sweepstake casinos, emphasising that their rise could lead to significant risks for the sector. 

The body drew attention to the fact that sweepstake casinos are incredibly similar to that of regular casinos. However, in most circumstances these firms operate under a far less intense regulatory environment.

According to AGA, sweepstakes avoid regulations and licensing through a dual-currency system, however they do still ‘look and play like an online casino’. It warned that ‘the ‘opaque nature’ could also significantly elevate the risk of bad actors having an opportunity for illegal activity. 

AGA stated: “The lack of regulatory oversight presents many risks for consumers as well as the integrity and economic benefits of the legal gaming market through investment and tax contributions. These sweepstakes-based operators have weak (if any) responsible gaming protocols and few, if any, self-exclusion processes.”

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This strategic agreement continues Playson’s ambitions in the US, with the firm’s new social casino operator partner’s strong audience reach set to bolster engagement for the firm. 

As a result of the deal, games such as Power Crown: Hold and Win, Jelly Valley and 3 Pots Riches: Hold and Win have been adapted for the social casino space and are free to play, with the integration done through Relax Gaming’s API platform.

Blanka Homor, Sales Director at Playson, said: “The partnership with High 5 Casino is a real coup for Playson, continuing our exciting journey within the US social casino industry.

“Undoubtedly, our presence in the US will become even bigger thanks to this agreement with a key player in the region and we are thrilled to showcase our games to High 5 Casino’s audience.”

This collaboration is set to further support Playson’s future ambition of entering the US real money environment, as part of its wider strategy to take its games into regulated markets worldwide. 

Jerry Wilson, VP Creative, at High 5 Casino, added: “Playson’s portfolio contains many player-favourites, with an unmatched reputation in producing high-quality Hold and Win slots.

“This collaboration will exhibit our ongoing commitment to provide US players with the very best titles on the market, and Playson’s extensive portfolio has already shown itself to be one of the most revered in the industry.”

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Under the terms of the partnership, Betmaster’s customers will benefit from Booongo’s portfolio of Hold and Win titles, including Dragon Pearls, Beast Saga and Aztec Sun.

“We are delighted to go live with Booongo’s renowned portfolio of slot titles in a partnership which will provide endlessly winning entertainment to our customers,” noted Alex Botezatu, chief operating officer at Betmaster.

“The deal is another step in the right direction for Betmaster as we continue to build out our comprehensive game offerings with trusted partners.”

The deal represents the latest stage of Booongo’s ambitions to strengthen its foothold in new territories, following on from a series of commercial deals that have bolstered the supplier’s presence in Latin America, Europe and Asia.

Most recently, the group has collaborated with platform provider Dotworkers in the LatAm region, before integrating its entire slots suite with High 5 Casino.

In addition to its slots suite, Booongo also strives to deliver a heightened user experience via its upgraded UI/UX interface and gamification tools that have been incorporated across its igaming range. 

Sebastian Damian, commercial director at Booongo, added: “This partnership with Betmaster will provide us with more opportunities than ever before in a range of previously untapped markets. 

“We are excited to see how our growing library of Hold and Win titles are received by Betmaster customers and look forward to enjoying this successful partnership.”

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Under the terms of the agreement with the online casino brand, which is licensed by the Malta Gaming Authority, Booongo’s games are available to High 5 Casino players in Europe, including the developer’s growing collection of Hold and Win titles, such as Sun of Egypt 2, 15 Dragon Pearls and latest hit 3 Coins. 

Furthermore, Booongo also strives to deliver a heightened user experience via its upgraded UI/UX interface and gamification tools that have been incorporated across its igaming portfolio.

Anthony Singer, CEO of High 5 Games, stated: “We’re focused on building our games library and delivering the kind of high-calibre content that players demand.

“Booongo’s portfolio, particularly its series of Hold and Win slots, will help enhance the overall High 5 Casino experience, and keep players engaged and entertained.”

High 5 Games, an independent casino games provider that also operates real-money brand High 5 Casino, holds licences and game certifications in multiple jurisdictions, including the UK, Malta, New Jersey, Gibraltar, and Denmark. 

This latest deal demonstrates Booongo’s ambitions to further increase its foothold within the European market, following a Latin America expansion unveiled last week alongside platform provider Dotworkers. 

Sebastian Damian, commercial director at Booongo, added: “High 5 Casino continues to build an impressive reputation within the RMG casino environment and delivering our games to the operator was an important move for the company. 

“This new partnership will allow even more players across Europe to experience our popular games, which continue to gain the attention of slot fans across the globe.”

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As a result of its approval, the new online casino will now launch on H5G’s proprietary igaming platform, Vault, which is embedded with innovations that the company envisions will ‘define the future of online and mobile gaming’.

Vault incorporates the New York developer’s ‘Brain with Benefits’ technology that monitors players in real-time and at all stages of the customer lifecycle with the aim of providing the user with a truly personalised experience. 

The technology monitors, promotions and bonus management system, CRM and data segmentation, content management and player account management before automatically triggering ‘Benefits’, which range from small surprise game features to fully adaptive content libraries and user journeys, across the platform and games.

Anthony Singer, CEO of High 5 Games, commented: “We’re really excited to be launching High 5 Casino into the real money gaming market. Vault with our Brain with Benefits technology is set to bring forth the next generation of online and mobile. 

“Oracle the brain will be present at ICE London 2020, head to our booth to learn more about how this new technology will cleverly bring a new unprecedented gaming experience.”

The technology is based on Google’s artificial intelligence and machine learning frameworks. The technology from Google, a long-term iGaming partner of H5G, has been implemented across High 5 Casino in the social casino world, as well as the company’s range of tentpole games, and is set to soon be rolled out across platform level and all games.

Regarding the Vault platform, it is developed from H5G’s social casino and sees usage worldwide. Soon available for real money play, High 5 Casino will feature High 5 Games’ full portfolio of games, as well as a range of titles from leading third-party providers.

As well as this, the Vault platform will also be made available to operators and platform providers, and is set to be exhibited by the company exhibiting at ICE London 2020 at Booth N1-421.

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