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This is a bizarre and somewhat sad story.
Double Down Casino and Big Fish Casino, which are run by two separate companies, both look like real-money online casino apps. But they're not. The coins you win on these casino apps have no value, and cannot be exchanged for real money.
However, the companies are accused of using 'predatory methods to target compulsive gamblers', encouraging players to buy more chips after their initial free allotment runs out.
Amazingly, despite there being zero upside to winning on these 'casino' apps, some people have spent as much as $400,000 buying play-money chips to keep playing, and they describe their need to do so in the same way compulsive gamblers behave.
In March, a $155 million settlement was reached with Big Fish in a class action lawsuit.
Presently, there are also lawsuits against Double Down, including one which attempts to use an old Washington law which allows all money won through illegal gambling to be refunded.
There's also a woman who recently did an interview with NBC News, Kathleen Wilkinson. She's a grandmother from Montana, and claims she lost her 'life savings' of $50,000 playing on the Double Down Casino. She's presently suing Double Down, as well.
The legal question here is interesting.
The attorneys suing these companies claim that these apps constitute 'illegal gambling', and they claim that the chips which people purchase are considered 'something of value'. In the Big Fish case, this was upheld to be true. In all other cases prior to this, these arguments failed.
The 'something of value' test has to do with the three elements which define gambling:
- Chance
- Consideration
- Prize
'Chance' means that there's a random element to winning or losing, and that's not all skill-related. 'Consideration' means that the player is putting up something of value to possibly lose. 'Prize' means that the player receives something of value if they win.
There's definitely 'chance' and 'consideration' here, as these slot machines run on a random number generator, and there's real money being spent on the chips. However, attorneys for the apps have argued that the 'prize' element isn't there -- that the players only win worthless chips. However, the plaintiffs' attorneys argue that these chips DO have value, as winning on these apps gives you more of the chips which you otherwise spend money on, thus giving people a feeling that they're actually 'winning' something.
How do I feel about this? I don't agree that these apps are illegal gambling, but I do believe there needs to be massive reform involving in-app purchases, as it's a super-immature area of law, and there's tons of shady stuff going on. A good example of this was the 21 Blitz situation, which DOES more resemble a gambling game, and indeed their ads are highly misleading.
Last modified: April 16, 2019
Welcome to the Terms of Service (the 'Terms') for Big Fish Game Club (the 'Program'). Among other items, these Terms describe in more detail the following highlights of the Program:
- One fixed price per month until you cancel
- Includes one (1) new game, Program discounts, and other benefits
- No ongoing commitment required, cancel online at any time
Please read these Terms carefully.
1. SCOPE OF TERMS
These Terms define our respective rights and obligations with respect to your participation in the Program on the Big Fish Games website located at www.bigfishgames.com (the 'Big Fish Games Website').
THESE TERMS ARE ENTERED INTO BETWEEN YOU AND BIG FISH GAMES, INC., A WASHINGTON USA COMPANY. THE TERM 'BIG FISH' MEANS BIG FISH GAMES, INC.
These Terms, together with applicable terms and conditions related to any promotional offers provided to you for use with your Program membership, constitute the entire agreement between you and Big Fish Games related to the Program. Please note that your use of the Big Fish Games Website and your Program membership are also governed by our Terms of Use and Privacy Policy, as well as all other applicable terms, conditions, limitations and requirements on the Big Fish Games Website, all of which (as changed over time) are incorporated into these Terms. If you register for membership, you accept these terms, conditions, limitations and requirements.
UPON ACCEPTANCE OF THESE TERMS, YOU AGREE THAT YOU HAVE READ THESE TERMS, UNDERSTAND THEM, AND AGREE TO BE BOUND BY THEM AS YOU PARTICIPATE IN THE PROGRAM.
YOUR USE OF BIG FISH GAMES' SOFTWARE WILL BE GOVERNED BY THE BIG FISH GAMES, INC. END USER LICENSE AGREEMENT ('EULA') ACCOMPANYING THE BIG FISH GAMES SOFTWARE. THESE TERMS SHALL SUPPLEMENT THE TERMS AND CONDITIONS OF THE EULA.
Your participation in the Program constitutes your express acceptance without reservation of these Terms and the EULA, as well as the Terms of Use, the Privacy Policy and all other conditions contained in the Big Fish Games Website including any amendments or updates thereto.
2. MEMBERSHIP BENEFITS AND PAYMENT
Your monthly membership fee (the 'Membership Fee') will entitle you to receive the following membership benefits (collectively, the 'Membership Benefits'): premium customer support from Big Fish Games, early access to games not otherwise available to customers, access to discounted games and other exclusive offers, special rewards and gifts based upon your status as a Program member, and one game credit ('Game Credit') per month. You may use one (1) Game Credit for any full standard version game, and two (2) Game Credits for any Collector’s Edition game, in each case on the Big Fish Games Website. You may also purchase as many additional Game Credits ('Additional Credits') as you'd like at the same price.
Purchases of Game Credits or Additional Credits are purchases of a limited, non-transferable, revocable license to access games on the Big Fish Games Website. Subject to the provisions contained in Section 3 of these Terms, such license will terminate upon any cancellation or termination of your membership. You have no property interest in any Game Credits or Additional Credits, or in your Program membership. Game Credits, including any Additional Credits you purchase, may not be transferred or resold for commercial gain in any manner, including, without limitation, by means of any direct sale or auction service. Game Credits, including any Additional Credits you purchase, have no monetary value, are non-refundable and cannot be used to purchase or use products or services other than games on the Big Fish Games Website or gift certificates to purchase such games.
You agree to pay Big Fish Games the Membership Fee each month by using a valid credit or debit card, or other payment method we may accept from time to time. Payments are billed in advance on a recurring monthly basis based upon the date when your Program membership commences. For example, if your Program membership commences on January 1, your Membership Fee will be billed on the first (1st) day of every succeeding month. If you cancel your Program membership and reactivate your membership again within any thirty (30) day period, your recurring billing date will revert back to your original enrollment date. For example, if your Program membership commences on January 1, you cancel your membership on January 15, and you reactivate your membership on January 30, your Membership Fee will be billed on the first (1st) day of every succeeding month (i.e., February 1 and the first (1st) day of each month thereafter).
All payments are non-refundable. Taxes may apply on the Membership Fees. You agree to provide Big Fish Games with valid credit or debit card (or other payment method) information, as well as any updates to such information, such as new expiration dates on credit or debit cards.
YOU HEREBY AUTHORIZE BIG FISH GAMES TO AUTOMATICALLY CHARGE YOUR CREDIT CARD, DEBIT YOUR BANK ACCOUNT, OR OTHERWISE BILL OR CHARGE YOU IN ACCORDANCE WITH ANY ALTERNATIVE PAYMENT METHOD YOU HAVE SELECTED, EACH MONTH UNTIL YOU CANCEL YOUR PROGRAM MEMBERSHIP.
You are legally responsible for any fees, including attorneys' and collection fees, that Big Fish Games may incur in its efforts to collect any remaining balances owed by you. You agree to notify Big Fish Games about any billing problems or discrepancies within ninety (90) days after they first appear on your relevant account statement. If you do not bring them to Big Fish Games' attention within such time, you agree that you waive your right to dispute such billing problems or discrepancies.
3. CANCELLATION OR TERMINATION OF MEMBERSHIP
You may cancel your Program membership online at any time. However, if you do so, Big Fish Games will not refund any Membership Fees that have been validly charged, debited or otherwise billed to your account as of the date of such termination.
We may also terminate your Program membership at our discretion without notice, including, without limitation, if you violate any provision contained in these Terms. Our failure to insist upon or enforce your strict compliance with these Terms will not constitute a waiver of any of our rights.
If your Program membership is canceled by you, your Membership Benefits will terminate at the end of your then-current billing period. If your Program membership is terminated by us, your Membership Benefits will terminate immediately, subject to the provisions contained in this Section 3. Upon any cancellation or termination of your Program membership, you will have one hundred and eighty (180) calendar days from the effective date of such cancellation or termination to redeem any Game Credits, including any Additional Credits you have purchased. If we cancel your Program membership because of a failed payment method, the one hundred and eighty (180) calendar days begin on the first date we are unable to bill the account for the monthly membership fee. Any Game Credits, including any Additional Credits, which remain unused as of such time will be unconditionally forfeited and cancelled, and any license rights attendant to such Game Credits or Additional Credits will immediately terminate.
You understand and agree that cancellation of your membership is your sole right and remedy with respect to any dispute with Big Fish Games with respect to your Program membership. This includes, but is not limited to, any dispute related to or arising out of: (a) any of these Terms or Big Fish Games' enforcement or application thereof, (b) any other policy or practice of Big Fish Games, including, without limitation, Big Fish Games' Terms of Use or Privacy Policy, or Big Fish Games' enforcement or application thereof, (c) your ability to access and/or use the Big Fish Games Website, any content on the Big Fish Games Website, or any software used to download or access the Big Fish Games Website or any such content, or (d) the amount or type of any Membership Fees, applicable taxes or billing methods relating to your Program membership, or any change to such Membership Fees, applicable taxes, or billing methods.
4. MODIFICATION OF TERMS OR PROGRAM
From time to time, Big Fish Games may choose to modify the Program or these Terms, including, without limitation, the price, content or nature of the Program or the information contained in these Terms, upon notice to you. In the event Big Fish Games elects to do so, you may cancel your membership in accordance with Section 3 of these Terms. If any change to these Terms is found to be invalid, void, or for any reason unenforceable, that change is severable and does not affect the validity or the enforceability of any other change to these Terms. YOUR CONTINUED MEMBERSHIP AFTER WE CHANGE THESE TERMS CONSTITUTES YOUR ACCEPTANCE OF THE CHANGES. IF YOU DO NOT AGREE TO ANY CHANGES, YOU MUST CANCEL YOUR MEMBERSHIP IN ACCORDANCE WITH THESE TERMS.
5. PARTICIPATION AND USE RESTRICTIONS
You agree that your participation in the Program is subject to the following restrictions: (a) you may not permit other individuals or entities to access or participate in the Program using your account information, including, without limitation, your username and password, (b) you may not license or otherwise transfer your Program membership to any third party, and (c) you may not remove or modify any proprietary notices contained in or relating to, or copy, modify, translate, distribute or create derivative works of, any of the games featured in the Program. Your participation in the Program is solely for your personal, non-commercial use. You may not use or participate in the Program for any commercial purpose. You may not attempt through any means to circumvent technological measures employed to control access to or the rights contained in any Program content file.
You are responsible for maintaining the confidentiality of your password and account information, and agree to notify Big Fish Games immediately of any unauthorized account use. Big Fish Games is in no way responsible for any loss that you may incur as a result of any unauthorized use of your password and account information.
Big Fish Casino Losing Money Due
In addition to any other rights and remedies available to Big Fish Games and its content suppliers, Big Fish Games may immediately terminate your Program membership if you fail to comply with any of the terms and conditions contained in this Section.
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6. E-MAIL NOTIFICATION
From time to time, we may want to let you know about new Program features and content that will enhance your participation in the Program. You agree that as a Program member, Big Fish Games may send such e-mails to you at the e-mail address you provided to us. At any time, you may opt-out of receiving these e-mails by selecting the 'unsubscribe' link at the bottom of such e-mails.
In addition, you agree that, even if you choose to opt out of receiving these or other communications from Big Fish Games, we may send you these Program update e-mails if, in our sole discretion, we determine that such communications are essential to the Program generally, or to your continued participation in the Program.
CONTACT US
Big Fish Casino News
Big Fish Games, Inc.
Attn: Legal Department
906 Alaskan Way, Suite 700
Seattle, Washington 98104
USA