High 5 Games has agreed to settle for almost US$1.5m after it was found to be in breach of Connecticut’s gaming laws by operating an online casino in the state.
The company was issued with a suspension in March by Connecticut’s Department of Consumer Protection (DCP) Gaming Division, after High 5 Games said it would be exiting the state.
As well as suspending High 5 Casino, the regulatory body also stopped the company from supplying its online casino games.
But while a settlement worth $1.44m has led to High 5 having its B2B supply business reinstated, the regulator said High 5 has now ceased operation of its online casino.
High 5 “agrees not to offer or reintroduce any gaming application offering sweepstakes games for users physically located in Connecticut unless and until it obtains a licence,” the settlement agreement read.
“We respect the Department of Consumer Protection and the important work they do to uphold the integrity of Connecticut’s gaming market,” said Tony Singer, CEO of High 5 Games.
“While we may not agree with every interpretation, we have always co-operated fully and acted in good faith. We operate with integrity, within the law and with deep respect for the licences we hold.”
The settlement includes a payment from High 5 Games of $500,000 which will be put towards consumer complaint resolution programs and responsible gaming efforts.
A further $294,173.94 will be contributed to the same areas for disgorgement, representing the cumulative amount of purchases, less any redemptions, by users who were on the Connecticut Voluntary Self Exclusion list.
A further $643,424.30 is to be paid in the form of restitution to 794 Connecticut users identified by the Department who placed stakes on High 5 Casino.
“This case is just one example of the hard work our Gaming Division does to ensure a fair, safe and legal gaming market in Connecticut,” said DCP Commissioner Bryan T. Cafferelli.
“We are pleased the Connecticut consumers who were lured into placing wagers on an unlicensed platform will be made whole, and that this company has ceased operations of its unlicensed casino in Connecticut.”
“We are satisfied with the outcome of this investigation, which has resulted in the return of funds to consumers who were harmed by the unfair marketing of an unlicensed sweepstakes casino,” said DCP Gaming Division Director Kris Gilman.
“If you’re going to gamble, Connecticut is the best state to place a wager. We work hard to ensure fairness in our licensed market, and when violations do occur, we make every effort to make sure consumers are made whole.”
FanDuel, in a partnership with Mohegan Sun, and DraftKings – via Foxwoods Resort Casino in Mashantucket – are the only licensed online casino platforms in Connecticut.
