During the first few months of the COVID-19 lockdown, with virtually all major sporting events cancelled, sports betting and gambling companies turned their eyes toward the esports universe in search of a solution. While initially large scale esports events were also cancelled, professional gaming competitions soon began taking place online. As one of the only professional “sports” competitions being broadcasted with any consistency, esports competitions filled the gap for many sportsbook operators.
Continue Reading The Rise of Esports Betting

On Thursday April 30, 2020 U.S. Senators Ted Cruz and Josh Hawley announced their intent to introduce the ” Countering Chinese Attempts at Snooping ” Act,  with the goal of “… Banning U.S. Officials from Using Tencent, … [and] Other Chinese Communist Party-Backed Platforms.” Specifically, the legislation requires that the company that creates the prohibited technology be “domiciled in the People’s Republic of China or subject to influence or control by the Government of the People Republic of China or the Communist Party of the People’s Republic of China” (“China”).  Given Tencent’s investments and involvement in some of the most popular game companies, this may come as a concern to the gamers in congress. But there are two reasons why this legislation may not cut into their gaming sessions.
Continue Reading Proposed Anti-Spying Legislation May Not Be Cause for Alarm for Gamers in Congress

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 contingent event not under the person’s control or influence’ and that “[m]ost games not derived from casinos involve some amount of skill and would thus be unlikely to meet the statutory definition.”
Continue Reading Most Non-casino Style Games Unlikely to be Gambling in Washington

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 conclusion that the DFS contest at issue was not gambling, the Court disagreed with much of the appellate court’s reasoning.
Continue Reading Daily Fantasy Sports Case Skillfully Comes to a Head

Microsoft has announced a partnership with Enjin to offer a blockchain based recognition program. Azure Heroes aims to reward individuals for verifiable acts of impact such as coaching, creating demos, building sample code, blogging about Azure or completing certain challenges. Community members that have demonstrated their contributions will be recognized with badges across a number of categories. Azure Heroes is branded as a new and fun way to earn digital collectibles for meaningful impact in the technical community.
Continue Reading Azure Heroes – Microsoft Partners With Enjin to Offer Crypto Collectible Rewards

Most video game patents that are asserted in litigation are also challenged at the PTAB through IPR or PGR petitions. Patent Owners looking for new ways attack such challenges have turned to the failure to disclose real-parties-in-interest (“RPI”). Under 35 U.S.C. § 312(a)(2), “[a] petition . . . may be considered only if . . . the petition identifies all real parties in interest[.]” Additionally, under 35 U.S.C. § 315(b), “[a]n inter partes review may not be instituted if the petition requesting the proceeding is filed more than 1 year after the date on which the petitioner, real party in interest, or privy of the petitioner is served with a complaint alleging infringement of the patent.” These requirements can pose unique questions for video game companies based on their relationships and business process. 
Continue Reading Failure to Launch: Not Identifying the Proper Parties Can Prematurely End an Video Game IPR Challenge

Apple’s App Store Review Guidelines have been updated to address various aspects of crypto currency. Some of the relevant provisions include the following.

One of the provisions relates to prevents an app from including ads that run background processes such as crypto mining. This is a tactic that has arisen, unbeknownst to many users. The relevant provision recites:

2.4.2 Design your app to use power efficiently. Apps should not rapidly drain battery, generate excessive heat, or put unnecessary strain on device resources. Apps, including any third party advertisements displayed within them, may not run unrelated background processes, such as cryptocurrency mining.
Continue Reading Apple Updates Crypto Currency Aspects of App Store Review Guidelines

The use of blockchain technology for crypto games, such as CryptoKitties, and other token-based digital collectibles is on the rise. Also growing is the number of tokenized-assets marketplaces such as Rarebits and cryptocurrency designed specifically for gaming, such as Enjin Coin. These innovative platforms are leveraging the power of blockchain technology as applied to games and other interactive entertainment.
Continue Reading Legal Issues With Blockchain-Based Crypto Games and Collectibles

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 virtual gambling is illegal in Washington state. The panel held that the virtual chips extended the privilege of playing the game and fell within Wash. Rev. Code § 9.46.0285’s definition of a “thing of value.”
Continue Reading Social Casino Game Found to Be Illegal Gambling

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 odds of receiving each type of item to customers prior to purchase. This comes as the incredibly successful monetization mechanic of loot boxes has come under scrutiny as we have addressed in our prior posts on Are Loot Boxes An Illegal Gambling Mechanic? and an Update to that post.
Continue Reading Apple Requires Disclosure of Odds for Loot Boxes

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 now, they likely remain legal in many jurisdictions. The following is an update on recent statements from various gambling regulatory authorities around the world.
Continue Reading The Legality of Loot Boxes – Update