Ask the expert Q & A: Why the definition of gambling is more important than ever
$5,000 Welcome Bonus
The definition of gambling is more important than ever.
The 2005 Gambling Act is due to be reviewed. The G gambling industry is an ever-evolving sector. New technology drives innovation in the industry. Sorare is a cryptocurrency-based football game in which players trade virtual football cards. It argues its NFT values are conducted through a ‘randomised mechanism’ and its fantasy games have no pool betting or fixed odds outcome.
Imogen explains the three gambling activities. Gaming is a game of chance for a prize. It can include roulette, card games like poker and bridge, board games such as backgammon and traditional gambling activity like bingo. Betting is making or accepting a bet on the outcome of an event or competition.
The definition of gambling is more important than ever. Lotteries are split into two types: simple and complex. A simple lottery is where participation is paid and prizes are allocated. The complex lottery requires payment to participate and the prizes allocated by a series of processes.
The industry defines gambling under three umbrella terms. Game developers are always pushing the boundaries of innovation. There are sections of the Gambling Act that aim to clarify how these should be treated.
The definition of gambling is more important than ever. Operators come to us with arrangements that may appear to be gambling but do not require a licence. If an arrangement satisfies both the betting and lotteries definitions, it's betting. If it doesn't, then it is gaming. It's not betting if it falls within the ‘exempt lottery’ categories and criteria.
Free prize draws and prize competitions fall outside of the definition of gambling.
There are grey areas around NFT trading and cryptos without a gambling licence. Operators should seek professional advice. Nft trading should consider potential financial services and registration with FCA.
Intertops and BetVictor have been named in a list of unlicensed offshore betting websites US customers should avoid. American Gaming Association has published a book called Slot Focus. The book is about the definition of gambling.
Alexandr Shavel, Head of BizDev Department at BGaming, discusses how 2021 went for the company and its plans for future.
