How High 5 Games’ costly oversight in Washington became the wake-up call that every sweepstakes operator needs to hear—and act on—before it’s too late
Reality Check: It Actually Happened in Washington
February 2025: A Washington jury awarded $24.8 million to players against High 5 Games for running what the court determined were illegal gambling operations. The reason? AMOE violations that turned their “sweepstakes casino” into an unlawful lottery under Washington law.
Let’s be honest here—nobody in the sweepstakes casino business thought this would actually happen in Washington. High 5 Games wasn’t some fly-by-night operation; they were an established player with legal teams and compliance procedures. Yet here we are, watching them write a check for nearly $25 million because they got their AMOE (Alternative Method of Entry) compliance wrong in Washington state.
If you’re operating a sweepstakes casino right now in Washington or similar states, this isn’t just another legal news story you can scroll past. This is your industry’s equivalent of the Titanic hitting the iceberg—except the iceberg has been visible for years, and now we know exactly what happens when you hit it in Washington.
The Bottom Line for Washington Sweepstakes Casinos
AMOE compliance isn’t just a legal formality—it’s the difference between running a legitimate sweepstakes casino and operating an illegal lottery in Washington. High 5 Games learned this the expensive way.
The $25M Wake-Up Call: What Actually Happened in Washington
Case Timeline: Larsen v. High 5 Games in Washington
April 2018
Rick Larsen files class-action lawsuit against High 5 Games in Washington state
June 2024
Federal Judge rules High 5’s apps constitute illegal gambling under Washington law
February 2025
Jury awards $17.7M in actual damages + $7.1M in enhanced damages
The Damage
Total: $24.8 million to Washington players who lost money on High 5 Casino and High 5 Vegas apps
Here’s what’s particularly sobering about this case in Washington—High 5 Games wasn’t trying to run an illegal operation. They had AMOE procedures in place. They offered free methods of entry. On paper, everything looked compliant for Washington regulations.
But the Washington court found that their AMOE implementation was fundamentally flawed. Players who paid for virtual chips could continue playing indefinitely, while those using free methods had limited opportunities. This created unequal odds—exactly what AMOE rules are designed to prevent under Washington gambling laws.
The Washington’s Court Finding
“High 5 violated Washington gambling and consumer protection laws by luring consumers under false pretenses and then requiring them to pay to play the casino game.”
AMOE 101: Why This Matters to Every Sweepstakes Casino in Washington and Beyond
Before we dive into what went wrong in Washington, let’s establish the fundamentals. AMOE (Alternative Method of Entry) isn’t just a legal requirement—it’s the cornerstone that separates legitimate sweepstakes casinos from illegal lotteries in states like Washington.
Prize
Something of value that participants can win—cash, merchandise, or virtual currency that can be redeemed
Chance
Outcomes determined by random selection rather than skill—the spinning reels, card draws, or wheel spins
Consideration
Payment or valuable action required to participate—this is what AMOE is designed to eliminate in Washington sweepstakes casinos
The Legal Foundation for Washington Sweepstakes
When all three elements (Prize + Chance + Consideration) are present, you have a lottery. Since private lotteries are illegal in most states including Washington, sweepstakes casinos use AMOE to eliminate the “consideration” element, keeping only Prize + Chance = Legal Sweepstakes.
This seems straightforward in theory. In practice, it’s where most operators trip up—and where High 5 Games made their critical error in Washington.
The Fatal Flaws: How AMOE Compliance Goes Wrong in Washington Sweepstakes Casinos
After analyzing the High 5 Games case in Washington and similar legal challenges, certain patterns emerge. Here are the most common—and dangerous—AMOE violations that operators make in Washington:
Unequal Opportunities in Washington
The Problem: Players who pay for virtual currency can play indefinitely, while AMOE users receive limited free currency that quickly runs out.
Why It’s Fatal: This creates different odds of winning based on payment status—the exact definition of consideration in Washington gambling law.
Hidden or Complex AMOE Procedures
The Problem: AMOE methods buried in terms of service, requiring multiple steps, or using confusing language that discourages participation in Washington casinos.
Why It’s Fatal: Courts examine whether AMOE is genuinely accessible to all participants, not just technically available in Washington.
Artificial Limitations on Free Entry
The Problem: Daily limits, waiting periods, or caps on AMOE usage that don’t apply to paid entries in Washington.
Why It’s Fatal: Creates a practical barrier that effectively requires payment to fully participate under Washington law.
Inadequate Mail-In Options for Washington Operators
The Problem: Mail-in AMOE that’s slow, cumbersome, or provides inferior benefits compared to online purchases in Washington sweepstakes.
Why It’s Fatal: When the free method is substantially less convenient, courts may find it doesn’t provide genuine equal access in Washington.
The High 5 Games Specific Issue in Washington
High 5’s crucial mistake was allowing unlimited gameplay for paying customers while providing only limited free tokens to AMOE users. The Washington court found this created “consideration” because continued participation effectively required payment.
The Legal Battlefield: Understanding Washington RMLGA and Sweepstakes Regulations in Other States
The High 5 Games case was decided under Washington’s Recovery of Money Lost at Gambling Act (RMLGA)—a particularly powerful piece of legislation that’s becoming a model for other states like California and New York.
Washington RMLGA: The Game Changer for Sweepstakes Casinos
What It Does in Washington
- Allows players to recover losses from illegal gambling
- Applies to any “thing of value” lost in illegal games
- Includes virtual currency purchases
Why It’s Dangerous for Washington Operators
- Class action friendly
- Covers all player losses, not just profits
- Enhanced damages possible
But Washington isn’t alone. Similar laws exist in other states, and the legal precedent from High 5 Games is already being cited in cases across the country, including California, New York, and Connecticut.
State-by-State Risk Assessment for Sweepstakes Casinos
Washington, California, New York, Connecticut
Texas, Florida, Illinois, Pennsylvania
Nevada, Delaware, Wyoming
Industry Reality Check for Washington and National Operators
Multiple sweepstakes operators are currently facing similar lawsuits in Washington and beyond. High 5 Games was just the first to go to trial and lose. The legal pressure is building, and operators need to act proactively.
Bulletproof AMOE: How to Get Compliance Right in Washington Sweepstakes Casinos
Learning from High 5 Games’ mistakes in Washington, here’s how to implement AMOE compliance that can withstand legal scrutiny in Washington and other high-risk states:
The Golden Rule of AMOE in Washington
Free entry participants must have identical odds and identical opportunities as paying participants. Not similar—identical, as per Washington regulations.
Mail-In Entry Best Practices for Washington
Essential Requirements in Washington
- Clear mailing address
- Simple format requirements
- Reasonable processing time (5-7 business days max)
- Same virtual currency amount as minimum purchase
Processing Standards for Washington Compliance
- Daily processing of mail entries
- Automated systems for consistent handling
- Email confirmation when processed
- No artificial delays or barriers
Online AMOE Implementation in Washington
Daily Free Currency for Washington Users
Provide the same amount of virtual currency daily that represents your minimum purchase option. If your minimum purchase is $5 for 500 coins, daily AMOE should provide 500 coins in Washington.
No Waiting Penalties in Washington
AMOE users shouldn’t face longer wait times, reduced benefits, or inferior game access compared to paying customers in Washington.
Prominent Disclosure for Washington Compliance
AMOE options must be clearly visible, not buried in terms of service or requiring multiple clicks to find in Washington sweepstakes sites.
Documentation Requirements for Washington
Proper documentation is crucial for defending AMOE compliance in Washington court:
- Detailed AMOE procedures manual
- Processing time logs
- Mail-in entry volume tracking
- Currency distribution records
- Player communication templates
- Legal review documentation
- Odds calculation worksheets
- Regular compliance audits
The High-Stakes Reality in Washington
Remember: Washington courts will look at actual implementation, not just written policies. Your AMOE compliance will be judged by how it works in practice, not how it looks on paper.
Red Flags: Warning Signs Your AMOE Compliance Is at Risk in Washington
Based on the High 5 Games case in Washington and ongoing litigation, here are the warning signs that should trigger immediate compliance review for Washington operators:
🚨 Critical Alerts for Washington
- • Different gameplay limits for paid vs. free users
- • Mail-in processing taking >7 business days
- • AMOE mentioned only in terms of service
- • Free currency that expires faster than paid currency
⚠️ High Risk Indicators in Washington
- • Complex multi-step AMOE processes
- • Daily limits on free currency only
- • AMOE requiring personal information beyond basic contact
- • Different game access for AMOE users
🔍 Watch Closely in Washington
- • AMOE usage below 5% of total entries
- • Player complaints about AMOE difficulty
- • Inconsistent AMOE processing times
- • Different customer support for AMOE users
📊 Monitor Metrics for Washington Compliance
- • AMOE to paid user ratio
- • Average processing response time
- • Player retention rates by entry method
- • Legal inquiry frequency
Professional Assessment Recommended for Washington Operators
If you recognize any of these red flags in your Washington operation, consider conducting an immediate compliance audit with legal counsel experienced in Washington sweepstakes casino law. The cost of prevention is always less than the cost of litigation.
The Ripple Effect: What High 5 Games Means for the Sweepstakes Industry in Washington and Nationwide
The High 5 Games verdict in Washington isn’t just about one company—it’s establishing legal precedent that will affect every sweepstakes casino operator in Washington and other states. Here’s what’s changing:
Increased Litigation in Washington
More class-action lawsuits using High 5 Games as precedent in Washington
Regulatory Scrutiny in Washington
Washington state attorneys general taking closer look at sweepstakes casinos
Compliance Standards Nationwide
Higher bar for AMOE implementation across the industry, starting with Washington
The New Normal for Washington Sweepstakes
Operators can no longer rely on minimal AMOE compliance in Washington. The High 5 Games case demonstrates that courts will examine the practical reality of your sweepstakes implementation, not just the legal structure.
What does this mean for operators in Washington? Simply put: the margin for error has disappeared. AMOE compliance that might have passed legal review two years ago is now a potential $25 million liability in Washington.
Don’t Become the Next High 5 Games in Washington
The sweepstakes casino industry in Washington just got its most expensive compliance lesson. The question is: will you learn from High 5 Games’ $25 million mistake, or repeat it?
🔍 Compliance Audit for Washington
Comprehensive review of your AMOE implementation against the High 5 Games legal standard in Washington
Starting at $12,000
⚖️ Legal Risk Assessment for Washington
State-by-state analysis of your legal exposure with actionable recommendations for Washington
Starting at $8,000
Or contact us at [email protected] for immediate consultation on Washington sweepstakes laws
The $25 Million Question for Washington Sweepstakes Operators
Here’s the uncomfortable truth: High 5 Games thought they were compliant too in Washington. They had legal teams, compliance procedures, and AMOE mechanisms in place. What they didn’t have was the kind of rigorous, practical compliance that can withstand judicial scrutiny in Washington courts.
The sweepstakes casino industry in Washington is at a crossroads. Operators can either learn from High 5 Games’ expensive mistake and implement bulletproof AMOE compliance, or they can hope their implementation is somehow different—and better—than the one that just cost $25 million in Washington.
The Smart Move for Washington Compliance
Invest in compliance now, or pay for litigation later in Washington. The High 5 Games case has shown us exactly what the stakes are—and they’re higher than most operators can afford to lose in Washington state.
Your AMOE compliance isn’t just a legal requirement in Washington—it’s your insurance policy against becoming the industry’s next cautionary tale in Washington sweepstakes casinos.
Frequently Asked Questions About AMOE Compliance in Washington Sweepstakes Casinos
What is AMOE in Washington sweepstakes casinos?
AMOE stands for Alternative Method of Entry, which allows free participation in sweepstakes to avoid classification as an illegal lottery under Washington law.
Why did High 5 Games lose $25M in Washington?
The Washington court found their AMOE implementation created unequal opportunities, effectively requiring payment for full participation, violating Washington RMLGA.
How can I ensure AMOE compliance in Washington?
Provide identical odds and opportunities for free and paid entries, use clear mail-in options, and document everything rigorously as per Washington regulations.
What are the risks of AMOE violations in Washington?
Risks include class-action lawsuits, multimillion-dollar damages, and business shutdowns under Washington gambling laws.
How does Washington RMLGA affect sweepstakes casinos?
It allows players to recover losses from illegal operations, making proper AMOE crucial for Washington-based sweepstakes casinos.