Connecticut’s Department of Consumer Protection (DCP) has announced a $1.5 million settlement with High 5 Entertainment LLC and High 5 Games LLC concerning their sweepstakes platform operating in the state. Earlier this year, High 5 Casino withdrew from Connecticut and several other states but had been actively operating there prior to its exit.
Connecticut is one of seven states in the U.S. that allows real money online casinos, currently licensing only two, which motivates the DCP to remove operators it considers illegal. High 5’s dual-currency model exploited a gray area, leading to allegations of illegal operations.
The settlement totals approximately $1.5 million, with about $650,000 allocated to reimburse past users whose purchases exceeded their sweepstakes redemptions. The remainder, around $800,000, will go to the Consumer Protection Enforcement Fund, which aims to support education around gambling issues in Connecticut.
A significant concern was that High 5 accepted wagers from individuals on the state’s Voluntary Self-Exclusion List, designed to help those experiencing gambling problems. Being outside the regulated ecosystem meant High 5 did not have access to the list, allowing self-excluded players to access their platform.
High 5, known for supplying games to licensed online casinos like DraftKings/Foxwoods and FanDuel/Mohegan Sun, had its supplier license suspended after the initial allegations. However, following the settlement, their license has been reinstated.
DCP Commissioner Bryan T. Cafferelli emphasized the importance of maintaining a fair gaming market in Connecticut. To ensure compliance, High 5 has agreed to provide quarterly reports until next April and will not offer games to other sweepstakes casinos without state approval.
This regulatory scrutiny could extend to lesser-known sweepstakes casinos still operating in the state. In related news, the DCP is hopeful for the passage of SB1235, a bill aimed at clarifying gambling laws in Connecticut, including stricter regulations on unlicensed gaming activities.
However, with the legislative session nearing its end, its prospects for timely passage appear slim.