is My Game Skill Gaming or Gambling?

[Rhubarb]

I have a website very similar in concept to Digiturf (www.digiturf.com ), the online horse racing game. It is in the latter stages of being completed (as much as online games ever are 'complete'!)

Basically, in the game you have to purchase your horse, and then buy items, all with real money. These act as credits in the game.

You are then able to train/look after your horse and have to make a number of key decisions when entering your horse into races which will strongly influence its success. Races cost to enter and will pay in credits which can be 'cashed-out' by users at any time in exchange for real money payments.

Some horses will be worth more than others based on potential and there will be an in-game sales ring.

So, my question is, will I need any kind of gambling/gaming license, or will this be classed as a skill game?

Can anybody give any related experience?

Many thanks!

[MerscomMan]

I have a website very similar in concept to Digiturf (www.digiturf.com ), the online horse racing game. It is in the latter stages of being completed (as much as online games ever are 'complete'!)

Basically, in the game you have to purchase your horse, and then buy items, all with real money. These act as credits in the game.

You are then able to train/look after your horse and have to make a number of key decisions when entering your horse into races which will strongly influence its success. Races cost to enter and will pay in credits which can be 'cashed-out' by users at any time in exchange for real money payments.

Some horses will be worth more than others based on potential and there will be an in-game sales ring.

So, my question is, will I need any kind of gambling/gaming license, or will this be classed as a skill game?

Can anybody give any related experience?

Many thanks!
My understanding is that it is a "skill" game only if there is zero luck involved. Thus, there cannot be any randomness or other factors not controlled by the player, otherwise legally it would be considered gambling. Not sure of the specifics, but it is a very fine line and you don't want to run into gambling issues.

[Nikos Beck]

Contact your countries revenue agency (IRS, CRA, NRS, etc.). They'll let you know if they classify it as gambling.

[papillon]

Thus, there cannot be any randomness or other factors not controlled by the player, otherwise legally it would be considered gambling.

OTOH in almost any game there is still some randomness. MMORPGs have dice-rolls for combat. Card games that count as skill still deal out cards at random.

What country are you based in and what are the relevant laws? :)

[AlexWeldon]

My understanding is that it is a "skill" game only if there is zero luck involved. Thus, there cannot be any randomness or other factors not controlled by the player, otherwise legally it would be considered gambling. Not sure of the specifics, but it is a very fine line and you don't want to run into gambling issues.

I think it's a grey area. The reason lotteries have those stupid "skill testing questions" is as a loophole to get out of being considered games of chance. And what about all those bingo halls for old folks?

Being an online game makes things even more complicated, of course. Even the poker servers can't agree on what the recent U.S. anti-gambling legislation really means. Some decided to play it safe and started doing everything they could to stop U.S. citizens from depositing money and playing there... others have done everything they can to make it easy for U.S. citizens, claiming that poker, in the long term, is a game of skill (which is true), and thus the legislation does not apply to them. Since they all have their headquarters and servers out of the country or on Indian reservations, it would be hard for the authorities to do anything about them anyway, except to apply pressure to online money-transfer services like PayPal to stop doing business with them.

Personally, I think you're taking a big risk going into any sort of online gambling business, unless you're taking a lesson from the poker guys and taking your business offshore. Even with the legalities aside, if you were based in the U.S. and there was any question that your system was flawed in terms of a biased RNG or users cheating, you could be setting yourself up for a massive class-action lawsuit.