A federal judge granted final approval to the $155 million settlement involving Big Fish Games on February 11, 2021. The agreement resolved claims over virtual chips in three social casino games, but it was not a ruling that the defendants broke the law. The settlement’s claim deadline—January 4, 2021—has passed, so players cannot file a new claim through it.
What the settlement covered
The settlement resolved two related federal cases, Kater v. Churchill Downs, Inc. and Thimmegowda v. Big Fish Games, Inc., in the U.S. District Court for the Western District of Washington. The lawsuits alleged that selling virtual chips in Big Fish Casino, Jackpot Magic Slots, and Epic Diamond Slots violated Washington gambling laws and the Washington Consumer Protection Act.
The defendants denied the allegations and denied violating any law. The parties settled to avoid the uncertainty and expense of continuing litigation; the court did not decide whether the claims were true. The agreement therefore is not an admission of wrongdoing or a finding that social casino games generally constitute illegal gambling. The official settlement notice describes the allegations and denials.
What the judge approved
On February 11, 2021, the court granted final approval, confirmed the settlement class, and dismissed the actions with prejudice under the settlement terms. The order states: “The Court hereby grants final approval to the Settlement and finds that the Settlement is, in all respects, fair, reasonable, and adequate, and in the best interests of the Settlement Class.” That finding concerns the settlement’s fairness, not the defendants’ liability. See the court’s final approval order.
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How the $155 million fund was structured
The settlement established a $155 million fund. Churchill Downs’ 2021 SEC filing reported that Churchill Downs contributed $124 million and Aristocrat contributed $31 million; the filing also confirmed the February 11, 2021 final-approval date. The fund covered valid class-member payments as well as notice and administration expenses, court-awarded attorneys’ fees and costs, and incentive awards for class representatives. See Churchill Downs’ SEC filing and the settlement notice.
Who was included in the settlement class
Generally, the court-approved class covered people in the United States who played Big Fish Casino, Jackpot Magic Slots, or Epic Diamond Slots on or before preliminary approval of the settlement. The definition had exclusions, including defendants and related entities and people who properly and timely opted out. The court-approved class definition controls; playing some other online gambling game did not, by itself, make someone a member of this class.
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This is a description of the historical class definition, not an individual legal determination. Anyone unsure whether they qualified should consult the official settlement documents or independent legal advice.
How payments were determined
The notice did not promise a fixed or equal payment to each eligible player. An individual payment depended in part on spending on in-game purchases in the three named games, whether a claim might be subject to a dispute-resolution provision in Big Fish Games’ Terms of Use, and the number of valid claims filed. The full fund was not reserved solely for player payments.
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What players could do—and what the deadlines mean now
The notice set January 4, 2021 as the deadline for submitting a valid claim form. It said a timely, properly completed claim was the only way to receive a settlement payment. That deadline has expired; this settlement is not a current route to file a claim.
- File a claim: Required to seek a payment, but the filing deadline has passed.
- Opt out: A person who properly opted out would not receive settlement benefits but could retain rights to pursue claims released by the settlement. The opt-out deadline has passed.
- Object: A class member could ask the court to reject the proposed settlement while remaining in the class. The objection period has passed.
- Do nothing: A class member who did not opt out remained bound by the settlement and its release, but would not receive a payment without filing a valid claim.
These were options under the completed settlement, not actions that remain available now. The official notice sets out the historical terms.
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