On August 28, the CFPB issued a Consumer Advisory warning that it believes video game companies are targeting children for monetary gain. With 45.7 million U.S. children engaged in video gameplay, the agency is concerned...more
9/18/2024
/ Business Model ,
Consumer Advisory Board ,
Consumer Financial Protection Bureau (CFPB) ,
Consumer Protection Laws ,
Cybersecurity ,
eSports ,
FinTech ,
Gaming ,
Online Gaming ,
Online Platforms ,
Online Safety for Children ,
Privacy Laws ,
Technology Sector
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
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
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
We previously reported, that the Belgian Gaming Commission has recommended criminal prosecution against certain game companies due to the allegedly illegal use of loot boxes. This report follows previous reports on findings...more
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
According to a recent news article, the Korean FTC fined three game companies for allegedly not making clear disclosures regarding the odds associated with certain loot boxes. Loot boxes are items that players can win or buy...more
As previously reported, The Ninth Circuit Court of Appeals reversed a district court’s dismissal of a purported class action and held that a social casino game constituted illegal gambling under Washington law. According to...more
4/9/2018
/ Appeals ,
Casinos ,
Class Action ,
Dismissals ,
Gaming ,
Illegal Gambling ,
Mobile Apps ,
Popular ,
Reversal ,
Social Media ,
Websites
The Ninth Circuit Court of Appeals reversed a district court’s dismissal of a purported class action and held that a social casino game constituted illegal gambling under Washington law. According to the Court, all online or...more
3/30/2018
/ Appeals ,
Casinos ,
Class Action ,
Dismissals ,
Gaming ,
Illegal Gambling ,
Mobile Apps ,
Reversal ,
Social Media ,
Terms of Use ,
Transaction Fees ,
Transfer Fees ,
Virtual Currency
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
A recent federal district court decision denied a motion to dismiss a complaint brought by Artifex Software Inc. (“Artifex”) for breach of contract and copyright infringement claims against Defendant Hancom, Inc. based on...more
5/16/2017
/ Breach of Contract ,
Commercial Use ,
Copyright ,
Copyright Infringement ,
Copyright Litigation ,
Gaming ,
Intellectual Property Protection ,
IP License ,
Open Source Software ,
Popular ,
Preemption ,
Source Code ,
Technology Sector
A group of New York citizens backed by the anti-gambling group Stop Predatory Gambling has filed a lawsuit against New York Governor Andrew Cuomo challenging the constitutionality of the bill that legalized daily fantasy...more
10/11/2016
/ Attorney General ,
Cease and Desist Orders ,
Constitutional Challenges ,
Fantasy Sports ,
Game of Skill ,
Gaming ,
Governor Cuomo ,
Illegal Gambling ,
Legalization ,
New Legislation ,
State and Local Government
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
Illinois is one of the latest states to initiate potential legislation involving daily fantasy sports (DFS). Like a number of other states, it is not declaring DFS illegal. Rather, it is taking a very consumer protection...more
In the latest regulatory salvo involving daily fantasy sports (DFS), the Nevada Gaming Control Board (NGCB) declared pay to play DFS to be gambling and has required DFS operators to cease and desist from operating in Nevada...more