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Feeling Lucky? You've Won! Will You Win? Enjoy Your Prize! Because social gambling games are similar, if not identical to real gambling games — and also have addictive qualities — there have been many debates about whether or not social games need to be regulated.
Then they talked about each individual state. Each state defines gambling as betting on a game of chance. The one common denominator they found is that gambling involves putting up something of value to get something of value back out.
So, they took that and applied it to a social casino app. One example they gave was about how, in Japan, you can play Pachinko a casino-like game and earn currency in the form of small metal balls.
These balls can be traded for real-world items — even cash — without consequence. Venture Beat asked Matt Jacobs, a Sacramento-based former federal prosecutor who has worked on some gambling related cases.
One of the potential issues in some games is how you get virtual goods out. These goods are advertised as costing money, even just a buck or two.
Makes sense. They wanted to see if it fit the definition of gambling. So, what happens to your money? And that seems to be the one key difference — the very reason why you can play social casino games legally in the United States.
Money can go in, but you receive nothing of tangible value in return. That said, there are second hand markets for virtual goods such as Zynga chips.
These sites are often credit card fraud rings who buy chips and then re-sell them. And the crazy part?
Social gaming companies are responsible for them — what they do and what they sell — whether they own them or not. This is seemingly unlike Japan, where companies apparently are getting away with players exchanging their metal balls for things of value.
Speaking of virtual goods, Venture Beat also considered the virtual gifts you can send to others. The law is even cloudier here.
When it has verifiable retail value — what do you do then? Who knows? Like traditional gambling there are people on both sides of the debate.
Another interesting thing we found from Venture Beat was their coverage of the Casual Connect Tel Aviv conference.
There, Adam Krejcik, an analyst at Eilers Research, provided his 13 predictions of the social casino market. Most of them apply to social game companies.
However, he did predict a handful of things players will find exciting. They said random games of chance tend to appeal to the older crowd.
Adding skill games will allow them to reach to the younger crowd. This is similar to traditional online gambling.
They said some companies are experimenting with live dealers in order to make the came even more social. They say poker is a good example.
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