united-states european-union gambling online
Are skill game tournaments gambling?
<p>We consider whether a skill-based online multiplayer game with some entry fees to a tournament and prizes for winner and sub-winners (consists of entry fees) is in US and EU law classified as a gambling/hazard game.</p>

<p>The game is not based on random (e.g. like bingo) and it is not a card game (like poker). The game's meaning is to be as skill-based as possible.</p>

<p>Of course, it depends on the application of legislation in each country, however, we would like to find a uniformly applicable model or any clear regulations that could be applied.</p>

<p>Most regulations seem to be very vague by definition and we fear of possible sanctions.</p>

<p>Is available any global resource that describes / monitors this problem across the world (or in US and EU at least)?</p>

<p>In the U.S. this will be dependant on State Gambling Laws, but typically it would only be illegal if the money was taken for a private Lottery (legally speaking, only the government is permitted to run lotteries, and the specific nature of a lottery is a game where a prize of monetary value is awarded to a participant by a mechanism of random chance).   Typically, skill based games are not Lotteries as the prize is determined by a non-random selection based on some metric of judgement (skills, though subjectively judged contests, like a Beauty Pageant or Body Builder competition can occur.).</p>

<p>E-sports tournaments are typically Skill based rather than random chance, and thus permitted.  Typically, the recent problem with many E-Sports is that the games themselves use Lockboxes as a form of micro-transactions to fund the game's development and sustainable and the mechanics of Lockboxes are sufficiently random that it might qualify as a lottery if the possible prizes could be considered items of value.</p>

<h2>Gambling requires a <a href="https://www.merriam-webster.com/dictionary/wager" rel="nofollow noreferrer">wager</a></h2>

<blockquote>
  <p>something (such as a sum of money) risked on an uncertain event</p>
</blockquote>

<p>An entry fee paid to participate in an event is not a wager even if the event offers prizes.</p>

<p>Note that a wager on the outcome of the event or matches within an event by non-participants <em>is</em> gambling. And side bets by participants are usually strictly prohibited because of the risk of cheating.</p>

<p>For example, consider horse racing (or any other sport); the participants (owners/trainers/jockeys/horses) pay an entry feat to compete for the prize money - this isn’t gambling. Others can bet on the outcome- this is gambling.</p>
