Court in California Denies High 5's Application in Legal Dispute over Sweepstakes Casino Case

California court rejects arbitration move by High 5 Entertainment in consumer lawsuit case

, and Administrator

2025 September 14 . 3:09 PM

2 min read

Court in California Denies High 5's Application in Legal Dispute over Sweepstakes Casino Case

In a series of legal developments, High 5 Entertainment, a prominent name in the online gaming industry, is currently embroiled in a lawsuit and facing regulatory pressure across multiple US states.

The lawsuit in question involves a claim by plaintiff Thomas Portugal that High 5 Entertainment's online gaming platform misled him into spending money. In a recent ruling, the Superior Court of California denied four motions filed by High 5 Entertainment's legal team, finding the company's efforts to push the case into arbitration to be "unconscionable." The court agreed with Portugal that the dispute falls outside the scope of any arbitration agreement and that arbitration would be unconscionable.

Legal analyst Daniel Wallach has noted that this ruling could have major implications for the industry's trajectory, as it could set a precedent for the sweepstakes casino industry. High 5 Entertainment has previously resolved similar cases in Washington and Connecticut.

Meanwhile, in New Jersey, the company is facing legal challenges related to allegations of misleading consumers. The court's decision in this case could also establish new legal precedents for the industry.

Aside from these legal battles, the sweepstakes casino industry is facing a landscape of increasing legal uncertainty. With several similar lawsuits still pending across the country and new laws targeting dual-currency gaming models, operators are finding it increasingly difficult to navigate the legal landscape.

California is one step closer to banning sweepstakes casinos, as Assembly Bill 831, which aims to ban the practice, has continued to gain traction in the state. Companies associated with this bill include sweepstakes operators like Stake.us, Ruby Sweeps, High 5 Casino, Chumba Casino (which restricted Playtech games), and VGW (operator of Chumba Casino and Global Poker). Game studios such as Pragmatic Play have exited the US sweepstakes market due to legislation.

Native American tribes, such as the Sherwood Valley Band of Pomo Indians, oppose AB 831 and have partnered with operators like B-Two Operations Limited. The bill is supported by major gaming associations and targets unauthorized online sweepstakes gambling in California.

This case and the ongoing legal challenges against High 5 Entertainment are not isolated incidents. They are part of a growing trend of legal actions against sweepstakes casinos, which are accused of functioning as illegal online gambling operations. Due to mounting regulatory pressure, High 5 Entertainment has already withdrawn from certain US markets.

As the legal landscape continues to evolve, it remains to be seen how these developments will shape the future of the online gaming industry in the United States.