Pursuant to the RMLGA, all persons losing money or anything of value on illegal gambling have a cause of action to recover the value of the thing that was lost. Internet gambling and online fantasy sports wagering are illegal under Washington State Law. Why did the Court find that the Complaint stated a claim under Washington’s Gaming Law? LEXIS 7739, the Ninth Circuit found that Big Fish Casino’s virtual chips are things of value within the meaning of the RMLGA and that the gaming law case should proceed. On March 28, 2018, the Ninth Circuit Court of Appeals held that Kater stated a cause of action under the RMLGA, reversing the District Court. Kater alleged that she lost over $1,000 worth of virtual chips while playing “Big Fish Casino” and that it constituted illegal gambling under the RMLGA. In the lawsuit, Plaintiff Cheryl Kater (“Kater”) sued Defendant Churchill Downs Incorporated (“Churchill Downs”), the owner and operator of an online gaming platform which operates as a virtual casino. The United States Court of Appeals for the Ninth Circuit recently rendered a decision based on the State of Washington’s gamling law, known as the Recovery of Money Lost at Gambling Act (“the RMLGA”), that could have broad implications for online gaming platforms.
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