Legal Question in Technology Law in California

online gambling or not

Are any of the following considered gambling such that in a state where gambling is illegal these activities would be illegal:

1. Online games where you pay for credits and within the context of the game are betting, winning and losing credits. The credits are never transferred back to cash so there are no cash payouts.

2. As 1, but the player can use credits to buy services such as more game play.

3. As 1, but the player can use credits to buy goods from the game such as a DVD player.

4. The game gives out prizes based on a players performance in the game.

Thanks.


Asked on 5/25/04, 1:46 pm

1 Answer from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: online gambling or not

The answer, if any, to your questions depends on various federal and state laws and whether you are a player or the operator of the game; also the amount of skill v. chance involved. Consider the pinball machine. Most places, the machine will give you a Replay if you score high enough or otherwise qualify; and this is not considered gambling. In days of yore if you scored enough replays some bartenders might buy the credits back for cash; this was gambling. Simply put, free game play probably equals not gambling, cash or other items of value probably equals gambling. There are just too many laws, states, and other variables in your questions to give a more definitive answer. Probably as a mere player you would have little fear of prosecution, but who can say for sure.

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Answered on 5/25/04, 2:55 pm


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