Article By Stephen Crystal
The recent suspension of High 5 Games’ online gaming service provider license in Connecticut is more than just another regulatory action—it’s a watershed moment for the iGaming industry. With criminal charges pending and nearly $1 million in player losses—including deposits from self-excluded individuals—this case serves as a stark warning about the incompatibility of licensed, regulated iGaming operations and unregulated sweepstakes models.
You Can’t Play on Both Sides of the Fence
One of the fundamental truths in gaming regulation is that you cannot operate as both a licensed iGaming service provider and a sweepstakes casino at the same time. The two models are governed by vastly different compliance standards, risk assessments, and player protection mandates. Trying to operate in both worlds while maintaining regulatory credibility is like trying to run a casino while simultaneously running an unlicensed poker room in the back—it’s simply not sustainable.
In High 5 Games’ case, the consequences are clear:
- The company is a licensed iGaming content provider in Connecticut, supplying games to FanDuel and DraftKings, both of which operate within a highly regulated framework in partnership with the state’s two tribal casinos.
- Simultaneously, High 5 Games operated High 5 Casino, an unlicensed sweepstakes gaming platform that accepted wagers from Connecticut residents—including those on the state’s Voluntary Self-Exclusion List.
- The result? License suspension, criminal charges, and a direct impact on their business relationships with legal operators.
This isn’t just about Connecticut—it’s about a fundamental conflict of interest that many operators have failed to address: if you want to be a trusted partner in regulated gaming, you cannot operate in unregulated spaces where compliance, consumer protections, and financial transparency don’t meet industry standards.
Lack of Player Protection: The Tipping Point
Perhaps the most egregious aspect of this case is the lack of responsible gaming measures within High 5 Casino. Connecticut’s Voluntary Self-Exclusion List exists for a reason: to prevent individuals struggling with problem gambling from accessing gaming platforms. By ignoring state-mandated protections, High 5 Games didn’t just operate illegally—they actively facilitated gambling harm.
According to the Connecticut Department of Consumer Protection (DCP):
- 911 Connecticut residents lost a combined $937,938 on High 5 Casino
- 108 self-excluded players lost nearly $300,000
- High 5 Games faces 1,065 criminal charges under state gaming laws
This goes beyond a regulatory slip-up—it’s a failure of corporate responsibility. Licensed iGaming operators must adhere to strict player protection standards, including:
Self-exclusion enforcement
AML and KYC compliance
Responsible gaming tools and intervention measures
Sweepstakes casinos, on the other hand, often operate in gray markets with minimal oversight, leaving players vulnerable to financial risk, fraud, and irresponsible gambling behaviors.
Regulators across the U.S. are now taking notice, and this Connecticut case will likely accelerate enforcement actions against similar operations.
The Industry Must Learn from This
The Connecticut ruling is just the latest in a series of crackdowns on unregulated sweepstakes operations. High 5 Games’ recent decision to shut down sweepstakes offerings in multiple states is no coincidence—it follows a $25M class-action lawsuit loss in Washington, where a jury ruled that its sweepstakes casino violated state gambling laws.
With sweepstakes gaming under increasing legal scrutiny, operators who think they can toggle between regulated and unregulated markets must reassess their strategies. If your business relies on the legitimacy of regulated iGaming markets, you cannot simultaneously skirt compliance elsewhere.
A Clear Path Forward
For operators looking to avoid the same fate as High 5 Games, the path forward is clear:
Choose a side. If you want to be a trusted, licensed iGaming provider, then commit fully to regulatory compliance and player protection standards. The alternative—trying to hedge your bets with unregulated sweepstakes gaming—is now proving to be too great a risk.
Invest in responsible gaming infrastructure. Implement strict self-exclusion enforcement, transaction monitoring, and proactive player protections—whether required by law or not. The long-term value of trust and integrity far outweighs short-term revenue from unregulated play.
Recognize where the market is heading. Regulators are catching up, and enforcement actions will only increase. Trying to exploit regulatory loopholes is a losing game, especially as jurisdictions begin treating sweepstakes gaming as real-money gambling.
Final Thoughts
High 5 Games isn’t just losing its Connecticut license—it’s losing credibility, business partnerships, and financial stability. This case should serve as a wake-up call for all operators trying to balance regulated iGaming with unregulated sweepstakes models. The industry is moving toward greater compliance, transparency, and player protections—and those who fail to adapt will find themselves facing not just regulatory fines, but criminal charges.
The message from Connecticut is clear: You can’t have it both ways.
