High 5 Entertainment and the Department of Consumer Protection (DCP) have come to a settlement agreement over sweepstakes casinos. The company will have to pay Connecticut $1.5 million as it was found to have provided games to sweepstakes sites that break the law.
Sweepstakes casinos have been in the firing line in Connecticut for some weeks now. Due to an inability to truly regulate them, states have begun to ban them outright. This style of casino operates differently from regular online casinos, offering two types of currency – “gold coins” and “sweep coins” – which are bundled together. Sweep coins can be used for monetary gain, and often are just regular gambling with additional steps.
However, sweepstakes casinos are yet to be classed as gambling, thanks to various loopholes in the law. A primary reason for going after them is that it can lead to gambling addicts falling into the trap with little to no protections provided by the often unlicensed operators.
Connecticut dishes another blow to sweepstakes industry
The state had suspended the license of High 5 Entertainment back in March, but this has now been reinstated. Another part of the settlement will result in High 5 having to pay back $643,000 to 794 users. If you’re part of that, it’d be best to check your email on a regular basis, as a third party is going to be contacting those affected in the coming weeks. Any funds not claimed in six months will become the state’s.
Speaking on the case, the DCP Commissioner Bryan T. Cafferlli said:
“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.”
