Are Online Video Games Considered Gambling In UK?

Legislation is being thrown about across the globe concerning "online gambling" and what constitutes the act of "online gambling". The US has passed the UIGEA, attempting to put a stop to it completely - the European Union has forced several EU states to open their markets to one another - the Poker Players Alliance claims poker isn't gambling because skill plays a large roll in winning. To top it all off, the UK is now saying Online Video Games may be considered a form of online gambling if the possibility of winning a prize is present.

The UK is currently revising their Gambling Act, making changes to the provisions in regards to online gambling. The revisions are expected to go into effect as of September this year. The way the Gambling Act defines online gambling, the new laws will have an impact on online video games as well.

According to the Gambling Act, the definition of 'Gambling' is laid out in a vague manner, stating any game of chance played for a prize. The Gambling Act also makes it illegal for any operating providing such a service to do so without compliance of a gambling operators license.

By this reasoning, one widely popular market, MMOGs (massively multi-player online games), could take a brutal hit. The Gambling Act states any game involving chance and skill, or a game in which skill can help to eliminate the 'chance' factor - with prizes defined as any product of monetary value, virtual or physical, sold or awarded by advancement in such games - is deemed gambling.

MMOGs are being advised to seriously consider acquiring a gambling operators license due to these upcoming regulations. However, there is one serious drawback for MMOGs submitting to the proposition of video games being defined as gambling. Gambling operators must not permit underage players. Teenagers are especially drawn to such activities as online RPGs and other video games. Parents are happy to know their children are safe at home playing a perfectly harmless game suitable for their age. As such, we can expect to see this issue widely challenged in the coming months.