SKILL GAMING
Unregulated skill gaming– is it time for regulation? TIME AND TECHNOLOGY HAVE OPENED A SIGNIFICANT REGULATORY GAP ALLOWING GAMES TO SPRING UP IN PUBLIC LOCATIONS DESPITE SHARING CHARACTERISTICS WITH GAMBLING. REGULATORS SHOULD ACT, SAYS ERIC WEISS
D efining the boundaries between what constitutes gambling versus other forms of entertainment where money is exchanged for the opportunity to win something of value, has long challenged state legislators. From a historic perspective, even pinball machines were once considered gambling devices and considered illegal in some jurisdictions. The core dilemma arises from the blurred lines between gaming elements. When the current laws were written, law makers could not have anticipated the advancements in technology which now put slot machines in people’s pockets, or social games that bring together people from around the globe to compete against each other or against the house in a virtual environment. As a result, the legal framework has struggled to keep pace. The crux of the matter lies in the classification of computerized skill games—are they gambling games? Should they be subject to regulation? Examining arguments on both sides of this issue is crucial.
The skill vs gambling conundrum Pure skill games hinge solely on a player’s abilities without any randomness. Yet, many games blend skill and chance, creating a legal gray area contingent on jurisdictional definitions of gambling. Each game necessitates evaluation based on the legal stance of each state. Different states approach skill gaming differently. Some prohibit any form of skill wagering, while others attempt to draw a line between skill and gambling games. Legal opinions and precedents further complicate matters attempting to define legality and chance across states. States typically employ one of three approaches to differentiate gambling from skill: 1. Any Randomness: If chance is present, it’s gambling. 2. Predominance: If chance predominantly determines the outcome, it’s gambling. 3. Materiality: If chance significantly impacts the game’s result, it’s gambling.
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IMGL MAGAZINE | JANUARY 2024
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