Online game tournament & prize, is it legal?
Members - Reputation: 192
Posted 19 October 2012 - 08:14 PM
(1) players find partners to form teams, and the whole game is based on team vs team matches
(2) match result depends on more skill than luck
(3) free to play
(4) players can use real money to purchase virtual items, but those items won't directly influence the chance of winning
My company wants to run an knockout tournament that operates like this:
(1) partcipated teams compete with each other, and the winner proceeds to next match
(2) the final winner is awarded a prize (physical item or cash)
(3) free to join
Now I am concerned about the legal aspects of running such a tournament.
If I ran the tournament in my own country (only local players allowed to join) I would seek advice from local relevant departments about whether it is against gambling laws, whether I need to get license, etc. AFAIK, it depends on factors like free to join, skill / luck ratio, item instead of cash reward, etc.
I would be interested to know about such regulations in your country.
Also, how about run the tournament internationally?
Moderators - Reputation: 28769
Posted 19 October 2012 - 08:58 PM
The fact that the winner is given a real-world reward means you need to get a lawyer involved. It may seem like a minor infraction, but running an unregulated gambling system can land you in jail in many countries.
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Senior Staff - Reputation: 22429
Posted 19 October 2012 - 10:46 PM
It's quite likely that you will need some form of licence or permit and may have comply with gaming regulations, but to get proper and accurate advice you need to speak to a lawyer who knows your local laws regulations.
- Jason Astle-Adams.
Members - Reputation: 743
Posted 22 October 2012 - 06:19 AM
Also be aware that waiting for new game to become legal or at least regulated by law, can seriously stall your project.