FIRST PRINCIPLES
Legal classifications of betting games Considering one or more game characteristics as having a legal effect or requiring a special regulatory treatment, we can establish some legal classifications of betting games. a) Based on the relationship among players. We can distinguish between symmetrical games , where players are on equal footing; and asymmetric games , where one of the players, usually the game operator (i.e. house), controls the game, can set the rules, and has more advantages to win. In asymmetric games, there is a weak party and a strong party, which is why the State regulates them with the purpose of balancing the relationship, ensuring rules are shared and/or controlling any abuse of the dominant position of the strong party in this relationship. b) Based on the place where the game is played. There are face-to-face games, which are always played in the same place and in a physical manner: so-called onsite games. Then there are remote games, which are played anywhere by means of a remote access mechanism and virtually, also known as offsite games. The regulation of face-to-face games may include distance restrictions with regards to certain types of establishments such as schools as a measure to protect minors. Nowadays, these types of measures are considered unreasonable and disproportionate because the degree to which those who wish to operate a gaming house are negatively affected by such measures is not justified or necessary to protect minors. Current technology offers other more suitable means to prevent minors from entering a gaming house. c) Based on the duration of the game. Some games, for example, slot machines offer immediate results, when the time between the beginning and the conclusion of the game is less than one minute. The instant lottery could also fall into in this category, although it is up to the player to choose when he/she wishes to discover the result. Usually, players want to see the result immediately and it takes less than a minute. On the other hand, there are delayed outcome games, when the results - win or
lose - occur at a later time. This may be a few minutes (betting on horse racing or bingo), hours (betting on a sporting event), or days (betting on a televised lottery), etc. Behaviors associated with pathological gambling are more frequently observed in short games, and this is often used as the justification for legal measures regarding the minimum time that a game must last, for example, slot machines. d) Based on the way the result is achieved. This is the most popular classification. There are games of chance (where the outcome does not depend on the player) and games of skill (where the player’s involvement influences the result). Regarding games of chance, the percentage payout to the public is usually subject to evaluation. A recurrent error, at least in Latin America, is to limit regulations and control to games of chance, leaving games of skills unregulated. e) Based on the nature of the operator. In some jurisdictions, the operator of betting games must be a state entity. This is mainly the case for older games such as lotteries. In other cases, private entities are allowed to operate directly betting games. There may also be instances where there is a state gaming monopoly; yet this is only to create a barrier to market access since private parties can enter the gaming market through concession contracts with the public entity administering the monopoly. f) Based on Regulations. Betting games are an economic activity. In principle, they should be protected by the constitutional right to free enterprise, however, as constitutional rights are by nature limited, the exercise of a free enterprise may be restricted. Thus, there may be prohibited games and regulated games. Likewise, there may be unauthorized games, i.e., games that are neither expressly prohibited nor expressly regulated. g) Based on the player’s level of involvement. The outcome of a game may depend on the player’s own actions and degree of interaction, for example, when betting at a Black Jack or Baccarat table. In other games, as in the case of sports betting, the results of the events
PAGE 59
IMGL MAGAZINE | APRIL 2023
Made with FlippingBook flipbook maker