Joystiq http://www.joystiq.com Joystiq http://www.joystiq.com/media/feedlogo.gif Joystiq http://www.joystiq.com en-us Copyright 2008 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/Law of the Game on Joystiq: Tournamentalityhttp://www.joystiq.com/2008/09/12/law-of-the-game-on-joystiq-tournamentality/http://www.joystiq.com/2008/09/12/law-of-the-game-on-joystiq-tournamentality/http://www.joystiq.com/2008/09/12/law-of-the-game-on-joystiq-tournamentality/#commentsFiled under:

Each week Mark Methenitis contributes Law of the Game on Joystiq, a column on legal issues as they relate to video games:


I get a surprising number of questions about video game tournaments and whether those constitute gambling. So today I'm going to discuss the matter specifically. I want to state up front that because this varies from state to state, please consult an attorney before attempting to set up a tournament. If you can't figure out what the laws in your state are, check with the state's Attorney General. Even if you have seen other tournaments in your area, you need to know what rules you have to play by to host your own. It's far better to be cautious than to be in jail. You've been warned. Now, back to our discussion...

Professional sports are legal and gambling (in general) is not in the United States. Video games, however, seem to be consistently stuck between the two. Part of this is due to video games being, in relative terms, the new kid on the block. And part of this comes from the structure of the tournaments themselves. The last bit comes from the skill-chance continuum that games are placed on. But let's take each of these issues one at a time.
In an ideal world, we'd have a true gaming league and none of this would be an issue. However, since games are relatively new, no such league has risen to the level of the sports leagues that exist. The league model has many issues, largely with anti-trust, but it doesn't face a gambling issue. The potential gambling issue comes from the typical tournament model that works well for a "new" sport: pay to play.

That's not to say there aren't other models. Free tournaments with donated prizes would likely be governed like giveaways and sweepstakes rather than gambling, and those are legal most everywhere. Pay-to-play charity events with token prizes are governed under an entirely different set of rules, and while more allowable, have to follow those rules to avoid being accidentally labeled gambling. Charity poker tournaments and charity casino nights face a similar problem.

"The American attitude is it's better to be able to bet on something involving skill than on chance."


But it's this pay-to-play model, where the winnings are based on the actual entry fees, that can become problematic. Let's be clear: If there's outside wagering on the tournament, there's no question that's illegal in most places, just like betting on sporting events or horse races. It all has to do with what are considered the three elements of gambling: consideration, chance, and prize. Consideration means you're giving up something of value. Your consideration is for a chance to win a prize. The American attitude toward wagering in this way tends to be: it's better to be able to bet on your own performance (but only that you'll win) than on someone else's performance; and it's better to be able to bet on something involving skill than on chance.

So, this typically comes down to the local opinion on video games. There are very few pure skill games in the video game arena, as even the concept of random re-spawns can introduce an element of chance. However, by and large video games have more skill elements than they do chance ones. I have yet to see a district draw any lines within the "video game" realm, making tournaments of one game type legal and another not legal, but it's entirely possible.

Again, the first rule is to check with local authorities before hosting a tournament. Depending on the type of tournament you want to hold, different rules may apply. I should also mention that online tournaments can also bring federal law in the US into play, and international law into play if you aren't thoroughly screening the players. Until the point that there's some sort of uniform federal gambling regulation (other than an outright ban), I would use far more caution in organizing an online tournament for a prize than I would with a local one.

However, this isn't always the case. The most analogous sport to professional gaming is, in my mind, golf. In fact, in solo games or team games, it would be pretty easy to create a professional league that mirrors the PGA. (For the unfamiliar, the PGA in a nutshell: each player is an "independent contractor" subject to a series of restrictions, but also eligible for some group benefits, such as the pension fund. Your ability to participate is largely governed by your performance. You either play in or out. Open events allow outsiders to play too, but there is a registration fee. The PGA pays out winners based on its revenues.) The difficulty is a game league has to rise to the level of having enough revenue to support this model. After all, the PGA pays a hefty sum to tournament winners. If someone can find a marketable model for televising gaming matches that draws in viewers, then gaming would certainly graduate to the "major leagues." In fact, it seems to be more of a matter of when than if.

So, what is the downside of tournament violating laws? Well, fines and jail time are the typical result of illegal gambling. It varies from state to state whether the organizers or the organizers and players can be held liable for the activity. If you frequently play in pay-to-play tournaments, it might be in your best interest to check your local laws on player liability for gambling. Ideally, someday someone will make an online resource that simplifies researching this issue in your state, but for now, just play it safe.

Mark Methenitis is the Editor in Chief of the Law of the Game blog, which discusses legal issues in video games. Mr. Methenitis is also a licensed attorney in the state of Texas with The Vernon Law Group, PLLC and a member of the Texas Bar Assoc., American Bar Assoc., and the International Game Developers Assoc. Opinions expressed in this column are his own. Reach him at: lawofthegame [AAT] gmail [DAWT] com.

The content of this blog article is not legal advice. It only constitutes commentary on legal issues, and is for educational and informational purposes only. Reading this blog, replying to its posts, or any other interaction on this site does not create an attorney-client privilege between you and the author. The opinions expressed on this site are not the opinions of AOL LLC., Weblogs, Inc., Joystiq.com, or The Vernon Law Group, PLLC. As with any legal issue that may confront you in a particular situation, you should always consult a qualified attorney familiar with the laws in your state.

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]]>columnsgamblinglawlaw-of-the-gametournamentMark Methenitis2008-09-12T20:00:00+00:00Law of the Game on Joystiq: The evolution of Pub Gameshttp://www.joystiq.com/2008/08/27/law-of-the-game-on-joystiq-the-evolution-of-pub-games/http://www.joystiq.com/2008/08/27/law-of-the-game-on-joystiq-the-evolution-of-pub-games/http://www.joystiq.com/2008/08/27/law-of-the-game-on-joystiq-the-evolution-of-pub-games/#commentsFiled under:

Each week Mark Methenitis contributes Law of the Game on Joystiq, a column on legal issues as they relate to video games:


Despite the relatively small amount of time I've had to play them, I've so far enjoyed Fable II's Pub Games, especially Fortune's Tower (pictured above). The idea of minigames has been around for ages, but Pub Games adds deeper elements than the norm, as well as pre-release hype for Fable II. Of course, this begs the question: Is this a sign of things to come?

I could certainly see other RPGs following suit, pre-releasing a related Xbox Live Arcade, PlayStation Network, or WiiWare game that interacts with the core game, like a Final Fantasy XIII card game stand-alone. If this becomes a trend, then developers will be looking to the next evolution of this idea. I would imagine the next step would be external games that affect MMO environments; and beyond that, perhaps gambling with real currency. Think of the evolution this way: You start with a game like Texas Hold 'Em, where your play only affects that game, then the next logical step is something like Pub Games, which affects you alone in a virtual environment. From there, the evolution would logically move to impacting a multiplayer virtual environment and, ultimately, to affecting a real world environment, specifically your bank account. It's these last two steps that present some legal issues.

The key fact is that the UIGEA killed online gambling in the US.


As gaming has become a global industry, the legal issues presented become quite complex. Today's discussion will primarily be from the US perspective, where the final evolution I posed would require an actual change in the law. From a US perspective, the concept of using Xbox Live or PSN for gambling is, in short, out of the question under the current laws, assuming they are enforced. Specifically, the Unlawful Internet Gambling Enforcement Act ("UIGEA") would, in summary, act to bar credit card transactions to those services if they were to attempt to provide gambling. The specifics of the UIGEA are probably too complicated to discuss in depth here -- and they aren't terribly interesting. The key fact is that the UIGEA, for the most part, killed online gambling in the US, and this would likely be rolled under that umbrella.

However, the issue is by no means settled. There are, by my last count, close to a half dozen pieces of legislation on the table that either act to repeal or replace the UIGEA with a more concrete, structured approach to legalizing and regulating online gambling. For those who are wondering how Congress can pursue either option, look under the commerce clause. Specifically, online gambling is fairly clearly in the realm of an interstate transaction, given the movement of data in the activity, and so that activity would be within Congress's realm of control, despite the likely outcry from states who have banned casino gambling in their borders. So if and when the law changes, this evolution may become a reality.

The MMO arena, however, gets to be a far more complicated one. Since to date there has not been a console MMO tied directly to real currency, a la Second Life, I'll skip over that potential permutation of the facts. Imagine, instead, a console MMO more like Final Fantasy XI with Tetra Master type tie-in on XBLA. People simply interested in the card game could forgo the MMO aspects all together, given that multiplayer would be a likely element of the card game. Now, let's say that the betting in this Tetra Master game was changed to the MMO currency from the card-based betting system used before.

At this point, the game includes an interactive betting experience with no real value. It's no different than going into debt in Texas Hold 'Em (for XBLA) or Pub Games. While everything stays on this side of the line, there's no potential for problems. There is no restriction on gambling in a completely money-free environment. Things fall into a much grayer area, however, if the money or items in-game are being sold, even if it's not specifically authorized. Think of it this way, if you're betting 1,000 gold pieces on a card game, and you know you can go buy those 1,000 gold pieces on IGE (an in-game currency seller) for $4.00, then isn't that the same as betting $4? Of course, the key here is that you have to be able to "cash out," i.e., resell the gold for some value. The act of gambling essentially goes out the window when there's no chance for you to win a prize.

This still doesn't speak to tournaments, or what the implication of various proposed laws would be based on the skill and chance elements in the tie-in games, but each of those topics is complex enough to be an article of its own. Needless to say, it's likely that this tie-in gambling won't stop with Pub Games, and I'm interested to see how other developers decide to take advantage of the potential links between downloadable add-on games and their primary game. But for the time being at least, those tie-ins have to steer clear of the UIGEA in the US, and tread with caution in other regions like Europe and Asia, which tend to be more open to gambling.

Mark Methenitis is the Editor in Chief of the Law of the Game blog, which discusses legal issues in video games. Mr. Methenitis is also a licensed attorney in the state of Texas with The Vernon Law Group, PLLC and a member of the Texas Bar Assoc., American Bar Assoc., and the International Game Developers Assoc. Opinions expressed in this column are his own. Reach him at: lawofthegame [AAT] gmail [DAWT] com.

The content of this blog article is not legal advice. It only constitutes commentary on legal issues, and is for educational and informational purposes only. Reading this blog, replying to its posts, or any other interaction on this site does not create an attorney-client privilege between you and the author. The opinions expressed on this site are not the opinions of AOL LLC., Weblogs, Inc., Joystiq.com, or The Vernon Law Group, PLLC. As with any legal issue that may confront you in a particular situation, you should always consult a qualified attorney familiar with the laws in your state.

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]]>columnsfable-2gamblinglawlaw-of-the-gamepub-gamesxblaxbox-liveMark Methenitis2008-08-27T18:50:00+00:00Joystiq E3 impressions: This is Vegashttp://www.joystiq.com/2008/07/16/joystiq-e3-impressions-this-is-vegas/http://www.joystiq.com/2008/07/16/joystiq-e3-impressions-this-is-vegas/http://www.joystiq.com/2008/07/16/joystiq-e3-impressions-this-is-vegas/#commentsFiled under: , , , , , ,


We'll make a promise to you: not once in this preview will we reference the "Things that occur in Vegas" advertising slogan that seems to pop up every time someone mentions the mecca of mischievousness in the middle of Nevada. Except for that one time. No more.

This is Vegas is a game dreamed up by an assistant. Senior Associate Producer Trevor Ellington told us the real story behind the Sin City-based open-world humor game: an executive assistant at Midway came up with the idea of a game that replicated all of the wild fun to be had in Vegas, and thus was born TiV. During the demo we saw here at E3, the game presented four various scenarios: Fight, Party, Game, Drive, but by the time the game is released in 2009, they'll all be melded into what's supposed to be a sandbox of a good time.
First up, we saw the "Fight" scenario -- the main character (t-shirt dude) stands outside a replica of Caesar's Palace in front of a wrecked car. Apparently, he's responsible for the wreck, but it's not his car, and the car's owner and buddies are unhappy, so a fight ensues.

Immediately, the unique look and feel of This is Vegas jumps off the screen -- Elkington says that Surreal didn't want to make "the same old brown and gray" world as other games, and it's apparent that the art designers at the company have been earning their keep: everything is neon and shiny, and the HUD is as flashy as the casinos and people that populate the games background, as orange swirls and spirals curl their way across the screen every time an objective is met or given. Even during gameplay, the game has a kind of a magic feel to it -- every punch throws out sparks when it lands, and when a character is defeated, their casino chips fly out in a burst of color and roll across the sidewalk.



After our protagonist dispatches the annoyed car owners (pressing LB after building up a "buzz meter" provides a satisfying uppercut knockout cutscene), the other side of the game appears: the humor. Instead of security guards, mascots burst out of the casino to attack, and the sight of our guy beating up someone in a Burger King costume elicits a chuckle. It's not laugh-out loud funny, but it's not bad. But there is a glimpse of better humor -- after a while, the character is joined by a fighting minion named "Frankie" (a familiar face in Vegas -- "we did a lot of research in Vegas," says Elkington, "it was a tough job, but someone had to do it"), who spouts out a dead-on voice impersonation. When the virtual Ol' Blue Eyes calls a baddie "ya mook," it's actually pretty funny.

Next up is the gambling demo, and surprisingly, it's the most boring thing we see. Elkington says Surreal wanted to take out "the boring parts" of gambling, and so they've implemented an "advantage system", i.e. "cheating." Instead of playing Blackjack straight, you can press B to see hidden marks on the cards on certain dealers, but do it too much, and you'll activate your "suspicion meter," which will get you thrown out of the club. We'd think there's enough suspense in wondering whether to hit or stay on 16, but not so: though you can play the games without all the flash, it seems like Elkington doesn't think you'd want to. The other disappointment is that there will only be three casino games in the released version: blackjack, slots, and hold 'em. Not that those aren't great games, but the real beauty of Vegas is that you can bet on anything, and This is Vegas looks like it might fall flat on that one.



Finally, we saw a "Party" scenario -- our hero showed up at a club, and was asked by the hottie DJ to get the place hoping. He does this through a series of minigames -- there's a bartending game, which works like a more advanced version of Tapper, where you need to switch back and forth between a few spots pouring beers, lighting cigarettes, and serving cocktails, and a rhythm combo game on the dance floor. It's simple stuff, but there's enough flash and chaos to it to be interesting, and each of the minigames earn you points toward the larger goal of the mission.

This is Vegas is worth checking out (it comes out next year for Playstation 3, Xbox 360, and PC) in that it tries to do something different with the now-classic Grand Theft Auto premise -- instead of running around a dirty city and killing mobsters in cars, you're running around a shiny city and trying to cheat them at parties. It has a very unique and stylish look which works very well, but for all of its Vegas-y charm (there's a parody Strip in the game -- the Luxor pyramid has turned into a Mayan pyramid, and Caesar's has become Olympic Palace), it seems a little light on the thing that make Vegas the most fun: the gambling.

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]]>casinose3-2008fightinggamblingImpressionsjoystiqfeaturesmidwaypartysurrealthis-is-vegasMike Schramm2008-07-16T02:30:00+00:00Tomb Raider comes to online video slot machines. Finally!http://www.joystiq.com/2008/03/13/tomb-raider-comes-to-online-video-slot-machines-finally/http://www.joystiq.com/2008/03/13/tomb-raider-comes-to-online-video-slot-machines-finally/http://www.joystiq.com/2008/03/13/tomb-raider-comes-to-online-video-slot-machines-finally/#commentsFiled under: ,

If there's one thing we here at Joystiq constantly find ourselves thinking while playing Tomb Raider games, it's "Man, if only this experience could be translated into an online video slot machine." Well someone at Belle Rock Entertainment must have had a window into our souls, because the group has just unveiled Tomb Raider: The Secret of the Sword, a new video slot for their online casinos.

The machine isn't based directly on the games, unfortunately. Instead, it promises to "faithfully capture the gripping excitement and suspense of the original movie" with "a glossy 5 reel 30 pay-line multi-faceted package." Fans of the movie will be happy to know that the "randomly triggered Super Mode" and "Global Adventure Bonus" have been faithfully captured here. The Secret of the Sword joins a similar Hitman slot machine in the annals of lame cross-marketing ideas for Eidos products impressive and engaging Eidos slot machine ports.

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]]>casinoeidosgamblinggaminghitmanslot-mahcineslotstomb-raiderKyle Orland2008-03-13T22:15:00+00:00Law of the Game on Joystiq: MMORPGamblerhttp://www.joystiq.com/2008/02/21/law-of-the-game-on-joystiq-mmorpgambler/http://www.joystiq.com/2008/02/21/law-of-the-game-on-joystiq-mmorpgambler/http://www.joystiq.com/2008/02/21/law-of-the-game-on-joystiq-mmorpgambler/#commentsFiled under:

Each week Mark Methenitis contributes Law of the Game on Joystiq, a column on legal issues as they relate to video games:



Well, it's GDC week, which likely means no one will be reading 'Law of the Game on Joystiq.' I can't say I blame you ... However, I just got back from the Gaming Law Minefield conference, and I feel like writing about MMORPG gambling. So, if you can pry yourself away from the real-time GDC updates for a few minutes, it's time for this week's Law of the Game on Joystiq. But first, a little shameless self promotion in the way of background: I've been writing about the MMORPG gambling idea since December 2005, which, best as I can tell, makes me one of the earliest legal commentators on the matter, and my commentary spans my SSRN account and Law of the Game. If you want a pretty complete background on MMORPG gambling legal issues, feel free to read up. If, on the other hand, you'd rather get a summary and get back to your GDC coverage, read the next couple paragraphs.

MMO gambling, when linked to currency with a real world value, is essentially the same as any other online gambling. The first major issue in the early years of MMO gambling was what constituted a tie to "real world value," as games with eBay economies were a gray area. Games such as SecondLife were much more clearly linked to real currency. Given that MMO games have the freedom to incorporate practically anything imaginable, they can have any of the types of online gambling integrated into the game, or to a lesser extent, acted out by players (i.e., player sponsored tournaments with a gold buy in and prize) without integration. So, like any other online gambling system, there were the perpetual issues of access by minors, taxation, and, of course, the endlessly murky waters of differing gambling regulations worldwide. Things took a rather abrupt turn with the passage of the Unlawful Internet Gambling Enforcement Act in the United States at the end of 2006.

The passage of the UIGEA triggered a panic of sorts among online gambling companies, most of which pulled out of the US market all together. There has been some ongoing question as to how the UIGEA might apply to MMOs and MMO currency exchanges, most notably SecondLife before its gambling 'ban,' and nothing has really been clarified in that regard. Although recent developments with the implementation of the UIGEA may have placed the legislation in jeopardy, so much of this may still become moot. If it does, the possibilities for MMO gambling will greatly increase. However, given the complex state of online gambling restrictions in the US, which are largely regulated at the state level, MMO gambling is theoretically illegal in most, if not all of the US.

This state of affairs, however, will likely be resolved one of these days. At which time, online gambling will be sanely regulated rather than lambasted by senators who likely need their grandkid's help to make it to Google or chased around the internet by a mob with digital pitchforks and pixelated torches. But simply because something is available doesn't mean people will use it. Mark Clayton of the Nevada Gaming Control Board gave a fascinating presentation about a study done in Nevada on internet gambling, showing that online gambling largely bore little impact on people's real life gambling habits or choices, arguing that the social aspect was simply absent from online gambling. I find this view to be mildly shortsighted. I am of the opinion that the current state of online gambling certainly lacks the social elements some gamblers desire, but as time passes, I believe technology will fill the gap rather than the status quo of mixed online and real life gambling.

MMO games and virtual worlds, along with whatever web 2.0 type buzzwords you'd like to toss in, fill the 'social' element that is missing from many online games. Say what you will about the social habits of the online generation, but ultimately, it's social interaction that has fueled everything from MySpace to SecondLife, FaceBook to World of Warcraft. As more and more people reach the legal gambling age, I anticipate far more younger people will find great appeal in being able to get together and gamble with friends virtually, rather than try to coordinate an actual trip to a casino. After all, pretty much anything can be programmed, from slot machines to sports book-like betting on PvP tournaments to entirely new card games.

Even though I can't predict how the internet gambling regulations will actually be drafted, I do think I can offer a glimpse of what the future may hold. Of course, since there are so many MMOs, there will undoubtedly be tweaks and twists to some of these overall ideas, since I generally believe there will continue to be many virtual worlds available to explore. Accordingly, I imagine that there will be some worlds who may opt to avoid real money transactions altogether. These theories are limited to the companies who opt for real money transactions (RMTs) and wagering, otherwise the points become far more moot.

First and foremost is the tax issue. If I had to estimate, I imagine that the IRS won't get involved in taxing anything virtual in any manner other than on a "cash out" basis. Essentially, when you take cash out of the system, the IRS finds out about it. I imagine, similarly, that the systems will likely be able to track the inbound versus outbound cash flow, as net profit is generally what is taxed on wagers. A more complex version of the system that could be used in, say, SecondLife 2.0, would be one that can track both traditional transactions and wagering separately, so that taxes can be reported for ordinary income and gambling income separately.

Secondly, I could imagine a system whereby some servers opt for RMTs and others do not. Think current server divisions along PvP lines. Given that there are fans of all ages who would prefer to act in an RMT free environment, non-RMT servers may be a welcomed option. They would also give gamers below gambling age a server to play on without restriction. The two could co-exist, but balancing would be interesting in a server scheme whereby RMT players face no monthly fee but those who opt out of RMT play have to pay up.

Speaking of "under age" players, the age verification process may become far more complex. There is also concern for what to do in games that have RMTs and gambling with under age players. These could vary from restrictions on payment into or out of the system to restrictions on participation in certain activities. Again, much of this may depend on the actual regulations that go in place.

There is always concern for the "integrity" of the game. It is likely that the gambling portions of the engine will be subject to higher scrutiny to prove randomness and payouts. As you may or may not know, machines in, say, Las Vegas, are highly regulated to guarantee a certain degree of randomness and payout over the life of the machine.

Those are just some of my thoughts on what may be around the corner. More than likely, though, it will be a few years before all of the regulations are ironed out and products actually see the light of day. However, when the day comes, and MMO gambling is a legal reality, rest assured it will be a day that is well publicized and ushers in the next generation of gambling.

Mark Methenitis is the Editor in Chief of the Law of the Game blog, which discusses legal issues in video games. Mr. Methenitis is also a licensed attorney in the state of Texas with The Vernon Law Group, PLLC and a member of the Texas Bar Assoc., American Bar Assoc., and the International Game Developers Assoc. Opinions expressed in this column are his own. Reach him at: lawofthegame [AAT] gmail [DAWT] com.

The content of this blog article is not legal advice. It only constitutes commentary on legal issues, and is for educational and informational purposes only. Reading this blog, replying to its posts, or any other interaction on this site does not create an attorney-client privilege between you and the author. The opinions expressed on this site are not the opinions of AOL LLC., Weblogs, Inc., Joystiq.com, or The Vernon Law Group, PLLC. As with any legal issue that may confront you in a particular situation, you should always consult a qualified attorney familiar with the laws in your state.

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]]>gamblinglawlaw-of-the-gamelaw-of-the-game-on-joystiqMMORPGMark Methenitis2008-02-21T08:00:00+00:00Midway introduces 'This is Vegas' to Xbox 360, PS3, PChttp://www.joystiq.com/2008/02/06/midway-introduces-new-game-this-is-vegas/http://www.joystiq.com/2008/02/06/midway-introduces-new-game-this-is-vegas/http://www.joystiq.com/2008/02/06/midway-introduces-new-game-this-is-vegas/#commentsFiled under: , ,


Exacting revenge for all those times we said, "This is mediocre," publisher Midway has announced "This is Vegas," shortly before kicking us into a mysterious pit acting as little more than a receptacle for cynical gamers and woefully outdated movie references. So what, pray tell, is this ... This is Vegas?

According to the press release, it's "an open world, lifestyle action experience, where players will live out their Vegas fantasies by fighting, gambling, driving and partying their way through the most decadent, fast-paced and wildest city in the world." Said gambling, driving and partying will occur in a world devised by Midway's internal studio, Surreal Software. The Suffering and Drakan developer is currently aiming for a Winter 2008 release on the Xbox 360, PlayStation 3 and PC.

Studio head Alan Patmore says the team is "thrilled" to indulge our "wildest Vegas fantasies," though fails to specify whether that includes the one where we become an inconsiderate, alcoholic grandmother addicted to shaking hands with the one-armed bandit. There will, however, be "partying in the hottest night clubs, racing in underground circuits," playing at the tables, impromptu barroom brawls and (presumably) other exciting, lifestyle action experiences. This is Vegas, baby.

Gallery: This is Vegas

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]]>BreakingNewsgamblinglifestyle-action-experienceMidwayracingSurrealThis-is-VegasVegasLudwig Kietzmann2008-02-06T09:01:00+00:00Law of the Game on Joystiq: Gambling Herohttp://www.joystiq.com/2008/01/23/law-of-the-game-on-joystiq-gambling-hero/http://www.joystiq.com/2008/01/23/law-of-the-game-on-joystiq-gambling-hero/http://www.joystiq.com/2008/01/23/law-of-the-game-on-joystiq-gambling-hero/#commentsFiled under:

Each week Mark Methenitis contributes Law of the Game on Joystiq, a column on legal issues as they relate to video games:

law of the game
It's that time of year again. Yes, it's the Las Vegas convention season, and between CES and D.I.C.E., many of the gaming faithful will have been in casino central before the end of February, including my own trip to the Gaming Law Minefield conference. This means bloggers are more drunk and broke than usual. It also means it's time to talk about gambling and how it may soon have a greater impact on video gaming. In fact, video game gambling has been a hot topic as of late, between MMO gambling and Kwari, among other stories. As an idea, video game gambling is relatively new.

Gambling, and gambling laws, on the other hand, have been around for quite some time. Games themselves fall into a range between two extremes: Games of Pure Chance and Games of Pure Skill. Chance games are ones where the player has literally no impact on the outcome of the game. The classic example is a lottery, where no matter what you do, you can't change the odds of your numbers being drawn on any given entry. Skill games, on the other hand, have no elements of chance whatsoever. The classic example of a pure skill game is chess, given that there are no random elements in the game; the outcome is determined solely by the skill of the two players. Most games, from blackjack to backgammon to baccarat to Bubble Bobble, falls somewhere between chance and skill.

Lawmakers have traditionally been more reluctant to allow players to gamble on games of chance than games of skill, with wagers by spectators on the outcome being a separate issue entirely. Based on this view, skill games are legal in far more places worldwide than chance games. Of course, if you are a purveyor of gambling, you want a product that can be offered in the most places at once, and thus, you are likely on the lookout for a skill game that will bring in the maximum number of players. Accordingly, the first person shooter market became a hot target for gambling providers.

The difficulty with many FPS games is a similar problem that faces poker: There's an element of chance. Depending on the particular regulation you're dealing with, that may be enough to preclude participation in a market, or worse, run afoul of the Unlawful Internet Gambling Enforcement Act (at least, until a revision like the Skill Game Protection Act is passed). Discussing the chance elements in poker and FPS games have riled up a few vocal opponents in the past, so I will try to keep this as factual as possible. In poker, even though the odds can be determined by the number of cards in the deck, there is still a chance element in the drawing of cards. While there is a 1 in 52 chance of drawing any given card, which cards you draw are determined by the luck of the draw.

The FPS issue is a little more complicated, and only applies to some games. To illustrate this, I'm going to use two games most everyone who hasn't been living under a rock since 1999 is familiar with: Counter-Strike and Halo. CS may offer a pure-skill FPS under a given scenario, whereas Halo has chance elements. Every CS match starts at set locations. Teams have set resources available. The game's results are the results of the skills of the players. The only catch is that random team pairings may create an element of chance that doesn't exist in many other games. Could you imagine what would happen if the NFL randomly created teams every week? Some teams would simply be unmatched, solely by the "luck" of the team creation algorithm. Halo, on the other hand, employs a FPS mainstay that introduces an element of chance in addition to the random team potential: the spawn point. Once a match is under way, random respawns are a chance element. I'm sure everyone has experienced spawning right in someone's crosshairs only to be fragged an instant later. A string of those spawns, while random, would be a chance element that impacts the outcome of the match - not to mention it's really, really annoying.

So, I'm sure most of you are wondering by now, "What does this have to do with Guitar Hero?" Music games, such as Guitar Hero, are skill games, and therefore they may provide the perfect platform for video game gambling. In fact, I'm surprised it isn't already available or at least in development, given the popularity of the series. After all, the brand is already worth $1 billion.

The main difficulty is that short of a Guitar Hero for PC, it becomes almost impossible to use the actual Guitar Hero software. In case the reasoning isn't obvious, there's no way to tie the online play into independent servers that could handle the gambling aspect, unless Microsoft suddenly decided wagering with Xbox points was a good idea, which would also eliminate the lure of a true payout in the system.

How would this concept work? Fairly simple. Two players each pay $10 to compete, with the winner walking away with, say, $17 and the company keeping $3 for server cost, etc. It's clearly a volume based business model. Of course, there's also a lot of flexibility in it. If you're a Guitar Hero pro and want to only play challenges on expert, that's doable. If you're more the rookie and want to play on medium, it's also possible, although there will have to be some system to control for ringers cleaning out the easier difficulties.

There's even a potential future application of this concept in that casinos could begin to incorporate specifically designed versions of these games for on-site gambling. I'd imagine it would be a great fit at, say, the Hard Rock Hotel. Taking it one step further, it could be possible to see third party betting on the event. While there are a host of issues to resolve in terms of game security with respect to throwing the competition by amateur players, if those could be resolved, there would be numerous betting opportunities available. Besides a simple winner selection, there could be an over/under on a player's score, an over/under on the total song score, or even an over/under on note counts, streaks, or note correct percentages. And it's not just Guitar Hero that would work in this context. Dance Dance Revolution, SingStar, Rock Band, or even Donkey Konga would work, just as any other rhythm game. Until someone gets this off the ground though, it would seem that gambling on Guitar Hero will be limited to bets between friends and party goers, much like gambling on beer pong.

Mark Methenitis is the Editor in Chief of the Law of the Game blog, which discusses legal issues in video games. Mr. Methenitis is also a licensed attorney in the state of Texas with The Vernon Law Group, PLLC and a member of the Texas Bar Assoc., American Bar Assoc., and the International Game Developers Assoc. Opinions expressed in this column are his own. Reach him at: lawofthegame [AAT] gmail [DAWT] com.

The content of this blog article is not legal advice. It only constitutes commentary on legal issues, and is for educational and informational purposes only. Reading this blog, replying to its posts, or any other interaction on this site does not create an attorney-client privilege between you and the author. The opinions expressed on this site are not the opinions of AOL LLC., Weblogs, Inc., Joystiq.com, or The Vernon Law Group, PLLC. As with any legal issue that may confront you in a particular situation, you should always consult a qualified attorney familiar with the laws in your state.

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]]>columnsgamblingguitar-herolawlaw-of-the-gamelaw-of-the-game-on-joystiqMark Methenitis2008-01-23T17:30:00+00:00Slot machines to become more like video gameshttp://www.joystiq.com/2007/12/11/slot-machines-to-become-more-like-video-games/http://www.joystiq.com/2007/12/11/slot-machines-to-become-more-like-video-games/http://www.joystiq.com/2007/12/11/slot-machines-to-become-more-like-video-games/#commentsFiled under: , ,

There's usually not that much overlap between the gaming industry (the gambling one) and the gaming industry (the one you actually are about). That seems poised to change, though, as the New York Times reports slot machine manufacturers are adding skill-based gaming elements to the one-armed bandits in an effort to attract new players. "We can't just make a slot thinking about the 55-year-old lady who comes to the casino a few times a month," said Rob Bone, marketing director for WMS Gaming. "We need to appeal to new buckets of players, or we'll die."

To that end, Bally Technologies has signed a deal with Atari to make machines based on Pong and Breakout, which let you play simplified versions of the games during a bonus round. Don't get too excited, though -- your gaming skills won't let you break the bank at Vegas. As the Times points out, "skill will take a player only so far as these machines are still calibrated to pay out less money than they take in." That's OK though ... back in the '80s we put money into these games without expecting to get any money back.

[Thanks Vlad]

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]]>atariBallybreakoutcasinoclassicgamblinggamingpongretroslot machinesSlotMachinesvegasKyle Orland2007-12-11T14:15:00+00:00Bill seeks to legalize video game bettinghttp://www.joystiq.com/2007/06/08/bill-seeks-to-legalize-video-game-betting/http://www.joystiq.com/2007/06/08/bill-seeks-to-legalize-video-game-betting/http://www.joystiq.com/2007/06/08/bill-seeks-to-legalize-video-game-betting/#commentsFiled under: , , , ,

ma$ter chief
A new bill to be proposed by Florida Rep. Robert Wexler (D) would seek to exempt "games of skill" from the Unlawful Internet Gambling Enforcement Act (UIGEA). While the obvious goal is to protect poker from the UIGEA, the bill would presumably allow for the establishment of online betting networks for most video games. While casinos in Second Life (featuring games of chance, like slots, roulette, etc.) would remain illegal, theoretically, a company could establish a site that took round by round bets on Halo 3 matches, inviting leet slayers to put they monies where they mouths at.

Of course, the UIGEA was established in part to quell the enormous debt that online poker players have amassed, so don't expect this bill to float on by Congress. Still, just imagine the hustler-like subculture that would grow from out of the basements of red-eyed gaming junkies if the bill did pass. Sorta terrifying. Sorta tempting.

[Thanks, dark54555]

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]]>betbettingbillgamblegamblingUIGEAJames Ransom-Wiley2007-06-08T11:57:00+00:00Gambling on games bill passes Illinois legislaturehttp://www.joystiq.com/2007/05/18/gambling-on-games-bill-passes-illinois-legislature/http://www.joystiq.com/2007/05/18/gambling-on-games-bill-passes-illinois-legislature/http://www.joystiq.com/2007/05/18/gambling-on-games-bill-passes-illinois-legislature/#commentsFiled under: ,

Tired of playing games for near-meaningless Gamerscore points or leaderboard rankings? If you live in Illinois, you may soon be able to play games for cold hard cash instead.

The Illinois legislature recently passed HB1124, which would allow residents to place bets on "a contest of 2 or more individuals" in "an electronic video game simulating a contest requiring skill, experience, dexterity, and precision." The key clause here is "requiring skill," so traditional luck-based gambling games like blackjack or video poker are out while games "requiring speed and accuracy of response to factual questions," for instance, are in.

While the law is likely intended to allow gambling on the touchscreen games often seen in bars, we can't see why it wouldn't also allow Illinoisans to legally place bets on Halo 2 matches, for instance. The bill still has to be signed into law by Illinois governor Rod Blagojevich, though, so don't go placing money on your skill with headshots just yet.

[Update: Law of the Game has further analysis of what is and isn't allowed under the bill. We'll take his word over ours since he actually seems to have some legal experience.]

[Via Gaming Today]

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]]>betgamblingillinoislawlegaltouchscreenKyle Orland2007-05-18T12:00:00+00:00Beta test Tournament.com, gain the need for gaming greedhttp://www.joystiq.com/2007/04/06/beta-test-tournament-com-gain-the-need-for-gaming-greed/http://www.joystiq.com/2007/04/06/beta-test-tournament-com-gain-the-need-for-gaming-greed/http://www.joystiq.com/2007/04/06/beta-test-tournament-com-gain-the-need-for-gaming-greed/#commentsFiled under: , , ,

Tournament.com is looking for a few good beta testers and giving the participants $1 credit for every match they complete before the official launch later this spring. Tournament.com is looking to become a skill-based tournament environment where players compete for real money. Co-founder Marcus Pearcey says, "Much like golfers or chess players can compete against each other in tournaments, Tournament.com users can prove their skills and make some cash in secure, fair, competitive matches that reward winners with more than just bragging rights." Tournament.com has received the rights to use Valve games Counter Strike and Half-Life 2 for the beta, they plan to announce more titles after the beta.

Of course, this sounds just a tad bit like gambling, but Tournament.com insists this is skill-based competition. There is a list of locations that believe this is gambling and won't allow you to play. Competitors are only allowed to place $150 USD into their account every month to wager $1 to $10 on their competitions -- you must also be 18 or older to participate. The beta testers who receive the $1 credit per round need to use up their credit value before they can cash out. For gamers into competition, the stakes just got real. The $150 cap prevents us from saying that this is just begging for intervention. Tournament.com doesn't sound any different than bars that hold gaming competitions with buy-ins. Just make sure to check that the software is legal to download in your location before you go trying to pwn n00bs for cash.

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]]>competitioncontestFPSgamblinggamingskill-basedtournamentAlexander Sliwinski2007-04-06T12:45:00+00:00Virtual Feds scope out 'Second Life' casinoshttp://www.joystiq.com/2007/04/04/virtual-feds-scope-out-second-life-casinos/http://www.joystiq.com/2007/04/04/virtual-feds-scope-out-second-life-casinos/http://www.joystiq.com/2007/04/04/virtual-feds-scope-out-second-life-casinos/#commentsFiled under: , , , ,

"Adam Reuters," the adorable virtual persona of real-life reporter Adam Pasick, breaks a story on FBI agents checking up on the virtual gambling in nerd hangout Second Life. Since gambling isn't legal in most of the US, it presumably isn't legal on the internet either, even when it's using "Cuddle Bucks" or whatever the pretend currency in Second Life is. So far, the Feds haven't shut anything down, but stay tuned ... any time now, a whole lot of furries may have to find another place to play the slots.

[Via Second Life Insider]

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]]>fbifurriesgamblingsecond lifeSecondLifeTony Carnevale2007-04-04T13:16:00+00:00Game champion commits suicide over gambling debtshttp://www.joystiq.com/2007/01/08/game-champion-commits-suicide-over-gambling-debts/http://www.joystiq.com/2007/01/08/game-champion-commits-suicide-over-gambling-debts/http://www.joystiq.com/2007/01/08/game-champion-commits-suicide-over-gambling-debts/#commentsFiled under: , , , ,

Christian Sellergren, a professional gamer who led Team Eyeballers to the 2004 CPL Counter-Strike championship, apparently took his own life last November over massive debts accrued from online gambling. The news trickled down to us through a rough translation of a recent story about the death in Swedish paper Aftonbladet.

According to the report, the 21-year-old Sellergren, who went by "divino" online, turned his competitive instincts to online gambling after retiring from the eSports scene. Sellergren lost his job and accrued over $13,000 in debt to fuel his addiction, which he kept from parents and friends.

While stories about pro gamers with six figure salaries and major sponsorship deals may make you think the scene is all about glitz and glamor, this story shows that is not always the case. Our sympathies go out to all of Sellergren's friends and family. If you think someone you know may have a gambling problem, please don't wait until it's too late. Get help.

[Thanks Will]

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]]>CounterstrikeCPLdivinoesportsgamblingpro gamerprofessional gamingProfessionalGamingProGamersellergrenKyle Orland2007-01-08T15:55:00+00:00Off the Grid: Hacking LCRhttp://www.joystiq.com/2006/12/07/off-the-grid-hacking-lcr/http://www.joystiq.com/2006/12/07/off-the-grid-hacking-lcr/http://www.joystiq.com/2006/12/07/off-the-grid-hacking-lcr/#commentsFiled under: ,

Every other week Scott Jon Siegel contributes Off the Grid, a column on gaming away from the television screen or monitor.

Don't be surprised if you haven't heard of LCR. My exposure to the game came from my brother, who was presented with a copy -- along with everyone else in the studio audience -- as part of Rachel Ray's Thanksgiving special a few weeks back. It was one of four token gifts handed out to audience members before the über-surprise -- brand new cellphones for everyone! -- was announced. Having no need for what he quickly dismissed as "Dreidel with dice," my brother passed the game along to me.

LCR comes packaged in a clear plastic tube, containing two-dozen red plastic chips, three special LCR dice, and a small one-sided sheet of paper with the rules. The packaging describes it as "the new game that everyone's getting hooked on." It looked modest enough, but its purported popularity certainly piqued my interest.

Am I endorsing LCR? It's certainly not on par with classics like Settlers of Catan, or even cultural mainstays like Life or Monopoly. But no game is without potential. By itself, LCR may be dull, but the smallest twist, tweak, or hack can breathe life into even the stalest gameplay experience.

The rules for LCR are basic enough, calling for a minimum of three players to be seated in a circle. Each player is given three chips to start. During his/her turn, a player rolls all three LCR dice. For every 'L' rolled, the player passes a chip to the left. For every 'R,' a chip to the right. For each 'C,' a player adds a chip to the center pot. The three sides of the dice with dots on them do nothing. Play continues in one direction until only one player has any chips left. If a player has no chips left, that player is still in the game, but does not roll dice during his/her turn. A player with two chips rolls only two dice, and a player with only one chip rolls one die. The last player with chips remaining wins the game.

The notable upside to these rules is that nobody in the game gets eliminated. Even if you're out of chips, you could be back in the game easily if the adjacent players roll an 'L' or 'R' in your favor. The downside, however, is that gameplay is completely based on chance, and skill has no part in it whatsoever. The unpredictability might make LCR fun for the first few rounds, but where do you go from there?

Well, for starters, you turn to gambling and booze.Over at funagain.com, reviews of LCR are at odds with each other. Half of the reviewers hate it, while the other half love it, with the consent that you have to go beyond the rules to make it more interesting. Swapping out chips for coins -- or having each player "buy in" for X amount of dollars -- adds a bit more tension to the game's unpredictable style, turning it into a "winner takes all" scenario. Money will keep getting passed around, with more and more of it ending up in the center. You might be out of cash on your turn, but your opponent might roll in your favor, throwing you back into the competition. Like any good card game, a little money just makes it more interesting.

For those of the frat-boy persuasion, LCR can be tweaked to form a formidable drinking game (but only for those of legal age, of course). Start with a bottle of beer in front of every player, and an empty glass in the center. On your turn, roll all three dice. For every 'L,' the player to your left takes a swig. For every 'R,' the player to your right. For every 'C,' you pour a swig's worth from your bottle into the glass. If you roll three dots, you have to down the glass in the center. The last player with any beer remaining is the winner. To make for a longer game, start everyone with two bottles instead of one. It requires less hand-eye coordination than beer pong, and it's a lot less dirty to boot.

There are those, of course, who enjoy gaming for gaming's sake, and believe that it *is* possible to hack a game without simply adding money or alcohol to the mix. In LCR's case, a good place to start meddling is with the lack of choice. Give players a sense that they're actually doing something strategically, and they'll feel that the game is more significant. As an example, I've designed LRC, a betting variant of LCR. LRC is still unpredictable, but allowing players to place bets before rolling the dice gives more weight to each turn's outcome, making each player's success or failure a result of their own decisions:

LRC (Left, Right, Commitment)
As in LCR, each player starts with 3 chips. In addition, place a number of chips in the center equal to double the number of players (ie: 6 chips for 3 players, 8 chips for 4 players, etc). In LRC, only two dice are used.

On your turn, you can commit chips from your pile to the center before rolling.

Rolling an 'L' forces you to pass a chip to your left. Rolling an 'R' forces you to pass a chip to your right. Rolling a dot does nothing.

For each chip you committed to the center on your turn, you can earn 2 back for each 'C' you roll. For example, committing 2 chips and then rolling 2 'C's earns you 4 chips back. But if you only committed 1 chip and rolled 2 'C's, you only earn 2 back. In other words, you can't earn back more than double of what you committed.

If you didn't commit chips to the center on your turn, rolling a 'C' does nothing. If you did commit chips, but didn't roll a 'C', those chips are lost in the pot.

Like in LCR, players with no chips are not eliminated, but can not roll on their turn until adjacent players roll an 'L' or 'R' in their favor. If a player has only one chip at the beginning of their turn, they only roll one die. The last player with chips remaining is the winner.

With a greater number of people, you can change the rules to elimination-style to make LRC more competitive. If the elimination game ends too quickly, start players with more chips, or remove one of the two die to elongate the play-time.


If anyone else has any interesting hacks or variants of LCR, or of any other analog game, we'd love to hear them. Post your hacks in the comments, so we can all get the most enjoyment out of the simplest titles.


Scott Jon Siegel is a fledgling game designer, and fancies himself a bit of a writer on the topic as well. His words and games can be found at numberless, which is almost always a work in progress.

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]]>dicegamblingLCRoffthegridScott Jon Siegel2006-12-07T13:25:00+00:00Ohio bar game caught in legal battlehttp://www.joystiq.com/2006/11/06/ohio-bar-game-caught-in-legal-battle/http://www.joystiq.com/2006/11/06/ohio-bar-game-caught-in-legal-battle/http://www.joystiq.com/2006/11/06/ohio-bar-game-caught-in-legal-battle/#commentsFiled under: ,


Is it luck or is it skill? That's the question at the center of the debate over Tic Tac Fruit, a video game popular in many Ohio bars. Ohio Attorney General Jim Petro argues that the machine is an illegal, luck-based gambling device and has given Ohio bars until Nov. 11 to remove it from the premise or face sanctions. The game's maker, Ohio Skill Games, sees it differently, arguing on their web site that "Tic Tac Fruit and all of its variations are games of skill. Meaning that the outcome of each game is dependent on the players [sic] skill."

It's hard to say which side is in the right. At first glance, the game resembles a video slot machine, with three columns of three symbols each rolling to a stop with each play. The skill part, the manufacturer argues, comes when players places a wild square to maximize the payout, although the ability to do this correctly seems pretty elementary.

Ohio Skill Games backs up its argument with what it calls "the best legal team in the state of Ohio," ensuring that the attorney general's decision won't go unchallenged. In June, the manufacturer agreed to update the game's software in a settlement with the City of Columbus.

Watch - February news story on gambling games in Ohio
Read - AP story on recent attorney general order

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]]>fruitgamblinggamingOhioslotslot machineSlotMachineKyle Orland2006-11-06T12:25:00+00:00