High 5 Casino Remains Open Until October 20th in California, Before Officially Exiting

High 5 Casino remains open to its players until October 20th, but will become officially closed starting 26th. The casino’s initial exit plan stems from its current legal difficulties in California, which also impact a handful of sweepstakes casinos. 

A few days ago, Governor Gavin Newsom signed AB 831, effectively banning the operations of sweepstakes casinos in the state starting January 1 next year. Then, there’s the recent decision of the San Francisco Superior Court judge denying the company’s motion for arbitration, allowing the lawsuit to move forward. 

High 5 Adjusts Its Timeline, Gives More Time to Its Players

High 5 Casino, one of the country’s top sweepstakes casinos, has adjusted its course in California, following Governor Newsom’s decision to approve Assembly Bill 831. The operator originally planned to close its website on September 15th. However, the operator suddenly changed course and extended access to its platform until October 20th. From this point, all access to the website will be blocked.

Also, starting October 13th, the site has stopped accepting new players, and coin package purchases are no longer allowed. High 5’s timing coincided with the recent state’s regulatory and legal developments, as Governor Newsom approved AB 831 last October 11th.

A Legal Blow to High 5’s Operations in California

In addition to a rapidly changing regulatory landscape, High 5 is still reeling from the devastating decision penned by San Francisco Court Judge Anne-Christin Massullo to deny its motion to compel arbitration.

According to Judge Massullo, the operator’s arbitration clause, as indicated on its ToS, “was unconscionable and heavily favors the operator”, at the expense of its players.

Exit Strategy Stays for High 5

Despite the abrupt schedule changes, High 5 still plans to leave California, the industry’s largest market for sweepstakes casinos. High 5 Casino remains active in at least 35 states, and its currently reworking its business model to adapt its business in states where sweepstakes casinos are legal, or at least operating in favorable conditions.

High 5’s California exit reflects the growing legal pressures facing operators not just in the state but in other areas. Operators are currently facing a “shape up or ship out moment, they must adapt to the growing realities, or end up closing shop.

REFERENCES:

• High 5 Casino
• Market Reports