Judge rules Big Fish Casino illegal online gambling under Washington law

Big Fish Casino, the series of interactive social games once operated by Churchill Downs, was found to be “illegal online gambling” by a federal appeals court judge—at least under Washington state law.

On Wednesday, Judge Milan D. Smith of the Ninth Circuit of the U.S. Court of Appeals overturned a district court ruling that junked a 2015 case filed by Cheryl Kater against Big Fish Games’ then-parent company Churchill Downs Inc.

In her lawsuit, Kater claimed she bought—and lost—more than $1,000 worth of Big Fish Casino virtual chips. While they don’t have monetary value, the chips are required to be able to play in Big Fish Casino’s suite of games, which include slots, blackjack and roulette. If a player runs out of the chips, he will either need to purchase more or wait until the game offers free chips.

Kater wanted to recover the value of her lost chips, arguing that those chips represent “something of value” under the Washington Gambling Law. In 2015, a U.S. District Court judge in Seattle junked Kater’s lawsuit.