The sweepstakes sector is coming under fresh assault in Connecticut, with lawmakers attempting to outlaw the activity completely
The Department of Consumer Protection (DCP) in Connecticut announced that it had reached a settlement agreement with High 5 Entertainment, the company behind High 5 Games, a supplier of games to online casinos.
Connecticut Cracks Down on Suppliers Who Supply Sweepstakes Operators
The firm has agreed to pay $1.5 million in restitution and penalties to the state, acquiescing to the state’s determination that the company had provided games to sweepstakes platforms, which constituted a breach of local law.
The company will now have to return $643,000 to 794 users and pay $800,000 to the state’s Consumer Protection Enforcement Fund. “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 Kris Gilman, who is director of the department’s gaming division.
This marks the latest blow to the sweepstakes sector, which has come under fresh assault from lawmakers all across the United States. In New York, VGW, the operator behind Chumba Casino and many other brands, was forced to shutter its sweepstakes operations, which will be phased out and completely unavailable by August 1, 2025.
The DCP accused High 5 Entertainment of providing its products to websites that were not legal under the state’s framework, even though sweepstakes are not technically classified as a form of gambling. This could be changing as well, however, as Connecticut is edging ever-closer to passing a law that would make them just so.
DCP Commissioner Bryan T. Cafferlli celebrated the settlement as a clear demonstration of the department’s ability to intervene in cases and win favorable outcomes:
“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. We are pleased that 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.”
High 5 Games to Continue Running Business as Usual in Connecticut
High 5 Games will remain operational in Connecticut, however, as the department will not be suspending the platform’s license. Instead, High 5 Games will have to submit quarterly reports to the department in which the firm will explain which companies are currently operating its products locally.
High 5 Games may only provide its games to locally licensed online casinos, the regulator has specified, with sweepstakes out of the picture.
