The Connecticut Department of Consumer Protection (DCP) investigation into High5Games says that the company was running High5Casino, an online platform that lacked the necessary licenses to operate within Connecticut. Which has resulted in the suspension of operations across 13 states in the U.S.
Key Findings of the Investigation
> Unlicensed Operations: High5Casino was found to be accepting bets from Connecticut residents without proper authorization.
> Violation of Self-Exclusion Policies: The platform allowed individuals listed on Connecticut’s Voluntary Self-Exclusion List to gamble, directly contravening state regulations designed to protect problem gamblers.
> Fraudulent Practices: The DCP accused High5Games of misleading consumers into believing that their operations were legitimate and licensed.
The Legal Ramifications
The company is currently facing 1,065 criminal charges for operating an illegal gaming business. Each charge is classified as a Class A misdemeanor in Connecticut, which carries the potential for up to one year in prison and fines reaching $2,000.
Implications of the Charges
> Financial Penalties: If convicted on all counts, High5Games could face significant financial repercussions.
> Precedent-Setting Case: This situation marks the first instance in the U.S. where a sweepstakes online gambling operator has faced criminal charges, potentially setting a precedent for future cases.
The DCP’s findings indicate that approximately 1,100 Connecticut residents engaged with High5Casino, with many suffering significant financial losses. Specifically, 911 players reportedly lost over $900,000, while 108 self-excluded individuals lost nearly $300,000.
The DCP has emphasized the risks associated with unauthorized gaming websites, particularly regarding the security of funds and the fairness of games.
> Difficulties in Fund Recovery: The DCP warned that recovering funds from illegal platforms is challenging for consumers, underscoring the necessity of playing on regulated sites.
Connecticut has a stringent regulatory framework governing online gambling, allowing only two licensed operators: FanDuel, in partnership with Mohegan Sun, and DraftKings, which collaborates with Foxwoods Casino.