Social online casinos that sell free chips may need to review their policies due to class action lawsuit awarding $155 million to Big Fish Games players . Big Fish allowed players to buy free chips to play with. The players sued, alleging that they were victims of predatory illegal games.
The settlement, announced in March 2021, is the result of lawsuits filed by players against Aristocrat Gaming and Churchill Downs Inc. , owners of the Big Fish casino. Some cases date back to 2015.
Main news
- Big Fish casino players receive $155 million.
- The suit alleged that the free chips gambling system is illegal.
- The decision will affect social online casino policy.
Player lawsuit leads to Big Fish settlement
Cheryl Kater first sued Churchill Downes in 2015, alleging she lost $1,000 playing Big Fish games from her cell phone. She claimed that social gaming site uses gambling, which violates Washington state law .
When Aristocrat bought Big Fish from Churchill Downs in 2017 , they also became defendants in the so-called class action lawsuit. One side argued:
By operating the Big Fish Casino and other similar online gambling operations, the Defendants violated Washington law and illegally profited from tens of thousands of consumers.
Did Big Fish Violate Washington State Gambling Laws?
Both Churchill and later Aristocrat denied that they had broken any laws, and the lower court initially dismissed the claim. However, after an appeal, a federal judge ruled in 2018 that under Washington law game pieces in Big Fish games represent "something of value".
This placed the games in the classification of gambling that is prohibited in the state. This also started the settlement of the dispute. The parties agreed on a settlement last year, and the final agreement took place at the beginning of this year.
Games violated Washington laws
Decision of Judge Milan Smith dated 2018 was a defining year in the case. He reasoned that although Big Fish virtual chips were considered free game chips, buying them to start or continue playing on the site provided chip value.
Washington state law describes gambling as " risking something of value as a result of a random competition or future random event not under the control or influence of a person in order to gain something of value in the event of a certain outcome ". Declaring that the owners of the Big Fish Casino had made millions of dollars, Judge Smith determined the following:
Because Big Fish Casino virtual chips are "value", Big Fish Casino constitutes illegal gambling under Washington law.
Judge Milan Smith
Implications for the online gambling and gaming industry
While the direct result of the settlement means Big Fish players get their money back, Smith's decision could have more repercussions for the online gambling industry. Social gambling sites with in-game microtransactions may be illegal in states where gambling is illegal.
Big Fish has already agreed to apply a voluntary self-exclusion policy and adjust your games to allow players to continue free play without buying more chips . PokerStars has suspended its play money products for players in Washington DC.
Social games and legal gambling
Video game developers in states where gambling is prohibited may have to change the mechanics of their games or apply for protection under new legislation.
Online casinos and real money gambling sites may need to change their marketing strategy for some states that ban the marketing and promotion of gambling. The solution may even influence laws in states where gambling is legal.
The Future of Social Gaming Platforms in the US
Big Fish's settlement forced social gaming sites based in the US, sit down and pay attention to this . The likelihood of similar lawsuits with large payouts will prompt them to change their free-to-play policy, meaning that profits will have to come from other sources. Players on these sites may see membership fees and other advertisements.
It remains to be seen if this promotion will reduce the presence of these sites. But as more US states accept online casinos, states and operators of free-to-play sites will keep a close eye on their progress.
Aristocrat Gaming Settles $ 155 million Big Fish Case message first appeared on US online casinos.
Source: onlineunitedstatescasinos.com