FIRST PRINCIPLES
example, to determine a winner. Rules are important because they make it possible to achieve the goal of the game. Rules cannot be changed , i.e., they are pre- determined since players must know them in advance of the start of the game. They can be changed, but only if players are informed before they become effective. Rules are mandatory and govern players’ actions. Rules are general because they apply equally to all players in the game. Rules are constraints because they limit, among other things, the way players must behave in the game. If a player does not know the rules of the game, he/she is at a disadvantage compared to the others. Some games have more complex rules than others, and a player who knows them better will have an advantage over the rest. In any case, in a rules-based game, it is important for every player to know the rules before playing and that every player follows them. Any rules-based game, by the mere fact that it has to be played according to rules, triggers brain activity in the players, and is, therefore, good for their intellectual development. In legally relevant games, regulations seek to guarantee these two conditions: the right to know the rules and the duty to follow them. iii) Competitive games: Some games create an environment for winners and losers. Such games have two components. The first is the number of people involved: there must be at least two players. No competitive game is possible with only one player even if the “opponent” is the owner of the slot parlor. The second component is that it must be rules based; for a winner to be decided, there have to be rules to determine how this goal is achieved. Thus, competitive games have these two characteristics: they are multiplayer games, and they are rules-based games. iv) Games with economic interest. If players can be affected financially as a result of the game, it is a game with economic interest. Any game giving a prize or where money is at risk can affect the economic situation of the player. Betting games are essentially money games. Any multiplayer, rules-based, competitive, betting game is a game where there is a justifiable public interest in regulating it.
There are several classifications of betting games and these are usually associated with how their outcome is determined: by the degree of randomness involved. A betting game is not necessarily determined by chance. There are many cases where players may influence, to varying degrees, the outcome of the game. There are betting games that are purely random, for example, slot machine games where the player has no influence in determining the winning combination. In some slot machines that mimic live card games, e.g., video poker slot machines, the player is allowed to replace the cards initially dealt. A bad or good decision in replacing the cards dealt can change the outcome. An optimal game strategy increases the chances of winning. There are other games where the player’s decisions can improve his/her chances of winning, as is the case of sports betting. For example, when betting on the outcome of a soccer match, it is possible to predict the winning team with a reasonable degree of certainty by researching certain facts about each team and its players. Therefore, whether the outcome of a betting game is based purely on chance, predominantly on chance or predominantly on skill is not relevant in the determination as to whether it must be regulated. To the extent that it is a multiplayer, rules- based, competitive game having winners and where players’ financial situation may change, there is a justifiable public interest in a State regulating it. It is legally relevant. Since it involves players’ money, the State may consider it in the public interest to ensure the protection of consumers, who are the weaker party in any asymmetrical relationship with the operator. As these are competitive games, there will be winners and losers based on previously established rules, therefore, the State could also have an interest in ensuring that the rules freely accepted by players are fair. Finally, as the outcome of the game triggers changes in wealth, the State may have a fiscal interest and may punish unjust enrichment. In summary, betting games are multiplayer, rules-based games having winners and, consequently, an effect on a player’s wealth.
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IMGL MAGAZINE | APRIL 2023
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