Steam warns users against gambling site after YouTube stars discovered as owners
eurogamer.net
eurogamer.net
> That being said, everything we've done up until this point has been legal, that has been a #1 priority of ours. The day it becomes illegal is the day we cease activity.
So just because something is apparently not illegal (questionable, actually), it is apparently an acceptable thing to do. Hopefully legal action is successful against these frauds.
Generally, if they do it "right", then cannot be sued. But you can shine light on their activity (like this article is) and shame them.
Hopefully someone else can jump in with more specific rules, but I would imagine that if you're pretending to be a neutral third party mentioning a service when you actually own it, the FCC might have a problem with that.
A big part of this stems from the concept that in-game items are not _really_ money. It allows these online casinos to flourish because it's 'just in-game skins'! It's actually really similar to japans Pachinko system where you don't win money.. but you win something that can be traded for money right around the corner. In reality land, I can cash out of valves ecosystem for around 20% of in-game currency and some of those skins are worth thousands of dollars...
These gambling sites really piss me off because they hurt the community. You have to remember, we're talking about young teenagers getting robbed from these guys, and it's not just their lunch money. We are easily talking hundreds of thousands to millions in revenue each year.
If you're unaware, they run what are essentially slot machines inside there games.
A super simple breakdown is as follows:
1.) play game for long enough, get item drops ( used to be 4 total per week in csgo ) ( either random gun worth $0.20 ~ $10.00 or case ) Cases are locked ( must be unlocked to get goodie ). The keys to open are sold by valve for $2.50 a pop or by people like myself for $2.00 ( I want to cash out to USD so I buy directly from valve ).
2.) When you unlock a case you play a literal slot machine, there are crap items worth pennies all the way up to $xx,000 knives that you can win.
A big difference in valves case is that the reward rates are known to a pretty accurate number and you don't have to gamble to win in the system. As long as you play you get item drops that you can sell for real money ( rather than gambling them ). Wth the gambling sites, it's much more like betting on football but the house is probably screwing a bunch of people.
Gambling is a vice like any other and adults should have the freedom to engage in it but I find it disgusting that Valve has supported a practice that so obviously promotes addictive behaviour..in games marketed towards those who are most vulnerable to it (young adults).
These lottery sites are just a product of the opportunity Valve created and its not surprising they are being used in fraudulent and immoral ways. It is sad, but not surprising that eSports is again being destroyed by ignorant game companies and shady opportunists.
If I buy and sell items in-game is that taxable? I have to imagine that at some point down the line the answer to these answers will be a fat "YES!" assuming you believe VR will continue to take over.. People just spend too much time, engery, and cold hard cash inside these video games for a government body to say "No" to forever..
I've chosen to ( okay, my lawyers told me ) to just claim normal income on the transactions out of steam ( I sell the keys for USD ). And if you follow that logic, then gambling in the current context should be okay. May be other laws on the gambling side but it's out of the scope of my knowledge.
edit: I see this is already mentioned in the thread. Oh well :-)
While I definitely agree that valve is in some way culpable, I do feel that even without the systems they've put in place, you would see this sort of abuse. Look at Diablo 2 and early WoW. It's pretty obvious that many of the gray markets in today's online games were created in direct response to the black/gray markets that sprung up around those games. When these markets emerged, game developers basically had the option to either try and shut these systems down (not an easy task, perhaps impossible) or to reinforce and rebuild them. Clearly, most companies chose the latter. Valve even went as far as hiring the economist Yanis Varoufakis (who went on to become finance minister of Greece for a hot second) to help them manage their online markets. They clearly saw a lot of money being made and said to themselves, "why shouldn't I get a piece of the action?" I can't say I blame them, game devs should be compensated and compensated well. That being said, csgo is not a free to play game.
As a csgo player, I find the whole skin system incredibly frustrating. Not only does it add no real value to the game in terms of gameplay, it also encourages a lot of bad behavior, such as hacking, scamming, spamming, etc. It also seems pretty clear that the decisions valve makes directly influence how easy/profitable it is to engage in these behaviors. While I don't think they are solely culpable for bad behavior on their platform, I do feel that they could do more to discourage it, even if it isn't in their financial interest.
That's how most (all?) real life casinos work too. You get chips, which are exchanged for money.
To compare, in most casinos, the casino itself sells you the chips and buys them back. No need to fuss about location since it's all done in one place.
In the Pachinko system, you go into the "casino", spend money on a machine, win the "chips" yourself, then go to another "casino" nearby to sell the "chips" for actual cash.
Also you are (presumably) verified to be 18 (or 21?) years of age to gamble in a casino.
http://arstechnica.com/gaming/2016/04/congressman-blames-son...
Maybe they've not changed quite so much.
it's just not the same, the incentive in the old days was to get money out of players by making the game as hard as possible (which could be beaten by just getting better at it, which was where the fun was also), now it's always psychological pressure like FOMO or skinner boxes and so on, and there is no limit to how many "best value xxxx gems for $99.99" boxes / chests / ... you can buy
IANAL, but business fraud statutes are extremely broad. For consumers in California for example, "any unlawful, unfair or fraudulent business act or practice" or "unfair, deceptive, untrue or misleading advertising" have a civil penalty of $2,500 per incident (for example, if 100,000 people were persuaded to visit their website, that might be $250,000,000 in damages). These are civil claims, where only a simple majority of the jury is needed.
When someone has to say their actions are "perfectly legal", they're usually running afoul of several laws they aren't aware of. Especially in an Internet business where you have potential exposure to so many jurisdictions.
[1] http://www.leginfo.ca.gov/cgi-bin/displaycode?section=bpc&gr...
Eve Online has a juggernaut EVEBet, plus hundreds of smaller 'oh look I won XX mones its legit' scams per month.
Even Nintendo cartridge collecting gets its share of rare cartridge Facebook group Raffle Wheels with shill accounts of the owner of said raffle winning x-xxK items repeatedly. https://www.youtube.com/watch?v=rnXeFDQqBQw , one of the "winner" suckers not acknowledging the reality he got scammed(probably because he runs illegal raffle wheels too, which he admits at the end, mind blown :o) https://www.youtube.com/watch?v=YCeq--49Fu4
Everyone wants to stand out.. Whether it's a "Verified" badge on Twitter, or going viral in a Vine, or hitting a certain follower count on Instagram, or a very rare skin in a game, etc..
Fame, notoriety, visibility, anything but being part of "the rest" is something many people are willing to pay a high price for.. And there are tons of people out there more than happy to take those payments..
A.) Why does your kid have your credit card
B.) Youtubers have always made money from their viewers