Superior Court of California denies High 5 Entertainment’s motions
The lawsuit, filed in December 2024, challenges the legality of High 5 Entertainment’s sweepstakes model.
Key Points
- The Superior Court of California denied four motions from High 5 Entertainment, finding the company’s arbitration agreement unconscionable
- The case involves allegations that High 5’s sweepstakes operations violate California gambling laws, with the plaintiff seeking injunctive relief
- This lawsuit adds to mounting regulatory pressure on sweepstakes operators across the US
The Superior Court of California, County of San Francisco, has denied four motions filed by High 5 Entertainment in an ongoing legal dispute concerning its sweepstakes operations.
The ruling marks the latest development in a case that has drawn scrutiny toward sweepstakes-based gaming operators in the US.
The denied motions included attempts to compel arbitration, strike the first amended complaint and quash service of summons.
Judge Christine Van Aken ruled that High 5 Entertainment’s arbitration agreement was “unconscionable” under California law.
The lawsuit, originally filed on 30 December 2024, by plaintiff Thomas Portugal, centers on allegations that High 5 Entertainment’s operations violate California gambling laws.
Good to know: Plaintiff Thomas Portugal is seeking public injunctive relief to shut down the high5casino.com operation
High 5 Entertainment attempted to argue that disputes should be resolved through arbitration rather than court proceedings. However, the court found no “clear and unmistakable delegation” of authority to arbitrators in the company’s terms and conditions.
The court identified both procedural and substantive unconscionability in High 5’s arbitration agreement.
Procedural issues included the adhesive nature of the contract and lack of proper disclosure, while substantive problems involved a restrictive one-year limitations period, cost-sharing requirements that disadvantage consumers and prohibitions on public injunctive relief.
Judge Van Aken noted that “California has significant interests in enforcing its public policies concerning gambling” when addressing High 5’s claims about the burden of defending in California courts.
This legal action represents another challenge for sweepstakes operators navigating complex state regulations. Earlier this year, High 5 Entertainment withdrew from six US states following various regulatory pressures.
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