In Washington State, class action lawsuits have been filed against four social gaming sites in which the operators are alleged to have violated state law by charging customers to compete in play money casino games. Those followed suit on a case against online site Big Fish Casino that had been initially dismissed back in 2015 when filed by a player, but was then overturned by the Ninth Circuit Court of Appeals in March.
Cheryl Kater, a customer of Big Fish Casino, filed a lawsuit against the social casino in 2015, claiming she paid for play money chips which, of course, have no monetary value to the customer.
She lost that case at the time, but last month, the Ninth Circuit Court of Appeals reversed the ruling. Judge Milan D. Smith ruled that “free play” casino chips represent a “thing of value,” making them a violation of Washington State Revenue Code § 9.46.0285.
In response to the court’s ruling, PokerStars blocked Washington residents from accessing its play money site to avoid any potential legal issues.
PokerStars doesn’t charge a penny to play free money poker games, unlike Big Fish Casino, but the court has determined that virtual casino chips represent a “thing of value,” which, in turn, constitutes gambling. And since online gambling isn’t legal in Washington State, even seemingly harmless play money casino games are illegal.
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