Online Gaming

News & Analysis as of

eSports Lawsuit Over For Now, But State Action May Follow

On October 4, 2016, a federal judge in the Western District of Washington dismissed a suit against Valve Corporation (“Valve”) alleging that Valve and third-party websites had facilitated online gambling in violation of state...more

Coalition Building to Combat Unlicensed Internet Gaming Sites

The NJ Division of Gaming Enforcement (DGE) regulates various licensees that provide services to the online gaming industry within the state. The agency recently demonstrated its power of regulatory enforcement over the...more

Location-Based Online Gaming Patents Found to be Directed to Patentable Subject Matter

Plaintiff CG Technology Development, LLC sued Defendants Bwin.Party Digital Entertainment, PLC in the U.S. District Court for the District of Nevada for infringement of various patents via operation of various online casino...more

German Prime Minister Conference Reaches Agreement on the Amendments to the German Interstate Treaty on Gambling...

According to a press release of 28 October 2016, the Prime Minister Conference agreed to repeal the limitation to 20 licenses for private sports betting providers. Further, the German gambling regulators are invited to take...more

Shutting the Valve on Skin Betting

A tried and true military strategy is to cut off your enemy’s supply lines: blow up a bridge and force a retreat. The tactic works in other situations too. It is regularly used by legislators and government agencies to...more

Fantasy Stock Picking Contest Deemed by SEC to be Illegal Security-based Swaps

The SEC shut down a “fantasy” stock picking game for allegedly violating securities laws. Forcerank LLC ran contests via mobile phone games where players paid a fee and predicted the order in which 10 securities would perform...more

SEC Fines Fantasy Stock Market App Developer

The Securities Exchange Commission (“SEC”) recently fined New York-based Forcerank LLC (“Forcerank”) $50,000 in connection with charges that Forcerank’s fantasy stock market mobile app illegally offers complex derivative...more

SEC Says Mobile Phone Game is an Illegal Security-Based Swap

I previously discussed an SEC Investor Alert which said fantasy stock trading for small amounts of money can violate provisions of securities laws implemented by the Dodd-Frank Act. According to the SEC, the terms “swap,”...more

Skin in the Game: Video Game Publisher Dodges Teenage Gambling Suit, But Must Address State Regulator Concerns

On October 4, 2016, a federal court dismissed a putative class action against Valve Corporation (“Valve”) regarding its popular eSports game, Counter Strike Global Offensive (“CS:GO”). Specifically, the class claimed Valve...more

SB356: Senator Coley Proposes Daily Fantasy Sports Contest Legislation

On September 26, 2016, Senator Bill Coley (R-West Chester) introduced S.B. 356, which if enacted would amend Ohio gambling law to expressly define daily fantasy sports (“DFS”) and e-sports contests that charge a commission...more

Michigan to Legalize Fantasy Sports?

The Michigan State House of Representatives recently introduced legislation proposing to exempt certain fantasy sports contests from the prohibition against gambling contained in the State’s penal code. The proposal is the...more

Eighth Circuit Privacy Class Action Fails to Clear Second Hurdle

In Carlsen v. GameStop Inc., plaintiff ­– a paid subscriber to defendant’s online gaming magazine – brought a putative class action lawsuit against defendant for alleged breach of its privacy policy by disclosing plaintiff’s...more

New York Issues DFS Permits

Just days after a New York State’s Daily Fantasy Sports law was passed, the New York Gaming Commission announced it has issued temporary permits to 5 DFS operators. The companies are DraftKings, FanDuel, Yahoo, Fantasy Draft...more

Fantasy Sports Bill Proposed for Nevada

On August 23, 2016, the two largest daily fantasy sports (“DFS”) operators, DraftKings and Fan Duel, will be presenting their proposed Nevada daily fantasy sports legislation (the “Proposed Bill”) to the Nevada Gaming Policy...more

Pokémon GO: An Indicator of Product Liability in the App Economy

As a big law firm involved in the defense of Product Liability cases, of course we are interested in how Product Liability law will evolve to address the App Economy. Mobile apps (apps) are software applications designed...more

New York’s Fantasy Sports Law at Work

On August 3, 2016, Governor Andrew Cuomo signed a law legalizing fantasy sports in New York. The timing is critical to the industry, as it may enable major fantasy sports providers to reopen operations in New York by the...more

Manatt Digital - August 2016

Manatt Digital—eSports Startup Launchpad - We are proud to announce our partnership with Narus Advisors in sponsoring the Manatt eSports Startup Launchpad. This pitch competition is designed to explore what creative...more

Polish Gambling Market on the Eve of Revolution

On July 20, the Polish government adopted a draft amendment to the Polish Gambling Act (“Draft Amendment”). The Draft Amendment was notified to the European Commission and until October 31, 2016, awaits comments and...more

Massachusetts Becomes Ninth State to Legalize Daily Fantasy Sports

Massachusetts Governor Charlie Baker has signed into law a bill to legalize daily fantasy sports in the Commonwealth. Massachusetts is the ninth state to legalize daily fantasy sports, and the eighth to do so this year. The...more

Weekly Web Wrap-Up

Welcome to Sheppard Mullin’s Weekly Web Wrap-Up, a quick list of the past week’s top news in the social media, gaming, and virtual goods and currencies industries curated by Social Media & Games Team. Here are some of the...more

Valve Strikes Back: A Strong Response to Allegations of Skin-Betting “Gambling”

In response to allegations that it has tacitly endorsed gambling via secondary markets, Valve Corporation (“Valve”), the maker of popular e-sports games such as Counter-Strike: Global Offensive (“CSGO”), has launched a...more

New York Legalizes Daily Fantasy Sports

Governor Andrew Cuomo signed into law a bill to legalize daily fantasy sports in New York. This is the eighth state to legalize daily fantasy sports, and the seventh to do so this year. With the start of the NFL season just...more

Worth Another Look: Regulating Fantasy Sports

In January of 2016, the National Conference of State Legislatures (NCSL) published a list of the top ten issues that will be before state legislatures across the nation this year. Since Pennsylvania will close out the...more

Massachusetts Beats Buzzer With New Fantasy Sports Law

With the State legislative session set to expire, Massachusetts lawmakers passed a bill late Sunday night to formally legalize daily fantasy sports in the Commonwealth. While other states that have recently legalized fantasy...more

Arbitration award on tribal igaming with non-US players

An arbitration award by a sole arbitrator recently approved a submission by the State of Oklahoma and the Iowa Tribe of Oklahoma as to the legality of internet gaming in which the server is located on Indian lands in Oklahoma...more

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