Loot boxes have become a regular feature in many mainstream video games. However, while their popularity is clear amongst gamers, the legal issues and positions from regulators about their use, both in the US and abroad, are...more
Iowa enacted a sports betting law last May. Section 99E addressed fantasy sports contests and Section 99F addressed sports betting.
Under Section 99E: a “Fantasy sports contest” includes any fantasy or simulated game or...more
The Washington State Federal District Court recently issued a decision stating: “Washington’s definition of ‘gambling’ only reaches ‘staking or risking something of value upon the outcome of a contest of chance or a future...more
In a controversial decision, the Illinois Supreme Court determined that a head-to-head, daily fantasy sports (DFS) contest was predominately skill based and thus not gambling. Despite agreeing with the appellate court’s...more
In a closely watched case, a New Hampshire federal court has ruled that the Wire Act is limited to sports betting and set aside the DOJ’s recent opinion to the contrary. However, it limited the scope of its declaratory relief...more
6/4/2019
/ Declaratory Judgments ,
Declaratory Relief ,
Department of Justice (DOJ) ,
Federal Rule 12(b)(1) ,
Federal Rule 12(b)(6) ,
Gambling ,
Gaming ,
Lottery Commissions ,
Motion to Dismiss ,
Sports Betting ,
Standing ,
Statutory Interpretation ,
Wire Act
In an effort to side-step the lawsuit filed against it by the New Hampshire Lottery (and others), the Department of Justice (DOJ) asserts that its recent reinterpretation of the Wire Act doesn’t apply to lotteries. As we...more
1. Blockchain Games and Collectibles Are on the Rise – The use of blockchain (or distributed ledger) technology for games (a.k.a blockchain games) and token-based digital collectibles is on the rise. The overnight popularity...more
3/20/2019
/ Bank Secrecy Act ,
Blockchain ,
Cryptocurrency ,
Digital Assets ,
Distributed Ledger Technology (DLT) ,
FinCEN ,
Gambling ,
Initial Coin Offering (ICOs) ,
Intellectual Property Protection ,
Non-Fungible Tokens (NFTs) ,
Patent Applications ,
Patents ,
Popular ,
Securities and Exchange Commission (SEC) ,
Technology Sector ,
Token Sales ,
Video Games
It didn’t take long. The New Hampshire Lottery has sued the Department of Justice (DOJ) to prevent enforcement of the DOJ’s opinion (issued last month) reinterpreting the Wire Act. As we reported last month, the DOJ reversed...more
This is a follow up... regarding the DOJ Opinion on its interpretation of the Wire Act. In a memo dated January 15, 2019, the Deputy Attorney General declared:
Department of Justice attorneys should adhere to the Office of...more
The Department of Justice (DOJ) has issued an opinion (DOJ Opinion) that reverses its 2011 Memo, in which it opined that the prohibitions of the Wire Act are limited to sports betting. In the DOJ Opinion, the DOJ has...more
Recently, there has been a frenzy of legal activity with U.S. gambling laws and the number of gambling-related legal issues with video games. U.S. gambling laws have changed more in the past few years than they have in a long...more
9/14/2018
/ Blockchain ,
Casinos ,
Cryptocurrency ,
Enforcement Actions ,
eSports ,
Fantasy Sports ,
Gambling ,
Game of Skill ,
Games of Chance ,
Internet ,
Mobile Apps ,
Online Gaming ,
PASPA ,
Sports Betting ,
Unlawful Internet Gambling Enforcement Act (UIGEA) ,
Video Games ,
Virtual Currency ,
Virtual Goods ,
Wire Act
The use of blockchain technology for crypto games and token-based digital collectibles is on the rise. One of the first crypto games of note was CryptoKitties. It may turn out that CryptoKitties becomes to crypto games what...more
5/11/2018
/ Bank Secrecy Act ,
Blockchain ,
Cryptocurrency ,
Digital Currency ,
FinCEN ,
Gambling ,
Initial Coin Offering (ICOs) ,
Money Transmitter ,
Patent Applications ,
Patents ,
Popular ,
Risk Mitigation ,
Securities and Exchange Commission (SEC) ,
Securities Exchanges ,
Technology Sector ,
Token Sales ,
Unregistered Securities ,
Video Games ,
Virtual Currency
The flurry of proposed legislative activity around loot boxes continues. State Rep. Rick Hansen (DFL-South Saint Paul) introduced H.F. 4460in Minnesota this week. H.F. 4460 would prohibit game purchases that result in random...more
4/27/2018
/ Gambling ,
Gaming ,
Illegal Gambling ,
Internet ,
Minors ,
Mobile Apps ,
Online Gaming ,
Proposed Legislation ,
Retailers ,
Rewards ,
Video Games ,
Virtual Goods ,
Warning Labels
As we have previously reported, the subject of loot boxes has received increasing scrutiny around the world. In one of the most recent pronouncements, the Dutch Gambling Authority (the “Authority”) declared the loot box...more
Apple just announced a number of changes to its App Store Review Guidelines, including the requirement that apps offering “loot boxes” or other mechanisms that provide randomized virtual items for purchase must disclose the...more
We recently blogged on legal issues with loot boxes as a game mechanic, and some of the scrutiny to which they are being subjected. The debate continues on whether loot boxes are an illegal gambling mechanic, but at least for...more
A member of the United Kingdom’s Parliament has opened an inquiry into the legality of loot boxes. Loot boxes are virtual items that may be redeemed to receive a randomized selection of additional virtual items. Various...more
In a follow up to a lawsuit we previously reported on, a California District Court ruled on summary judgment that a horseracing-based fantasy sports game constitutes illegal wagering....more
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
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
In January, Texas Attorney General Ken Paxton issued an opinion that daily fantasy sports (DFS) is likely illegal gambling under Texas state law “[b]ecause the outcome of games in daily fantasy sports leagues depends...more
Another lawsuit alleging illegal gambling in a social game has been dismissed. Over the last year, social gaming mobile applications have come under attack from the Plaintiffs’ bar as gambling in disguise. Plaintiffs’...more
On January 19, 2016, the Texas AG issued an opinion that paid Daily Fantasy Sports (DFS) are illegal under Texas law, but noted that “traditional” fantasy sports leagues are, as a general rule, legal under Texas law. In so...more
While all eyes remain focused on the impending preliminary injunction ruling in the New York state daily fantasy sports suit, a new fantasy sports suit has been filed in California. The California suit targets DerbyWars, a...more
Due to the specifics of New York state law, the outcome of the closely-watched New York state case against daily fantasy sports operators may not come down solely to a question of whether DFS is skill. New York has a two-part...more