bit-gamer.net

MMO operators need new licenses in UK

Published on 9th July 2007 by Joe Martin

MMO operators in the UK may need new licenses to run competitions come September.

In what may be another confusing entanglement of politics and gaming, UK MMO operators may soon find themselves having to apply for licenses to avoid prosecution as a result of new online gambling laws which will take effect in September.

The new law will treat all MMOs which run competitions or which offer prizes as being essentially the same as online poker and will force them to be subject to the same penalties and supervision as other forms of online gambling.

The news comes soon after it was reported that the USA is looking at how to tax virtual worlds such as Second Life. However, in the USA MMOs are treated as 'games of skill' and are therefore exempt from gambling regulations.

In the UK, things are a little different and one law firm outlines how it would work to GamesIndustry.biz recently:

"MMO operators can avoid any potential penalties by obtaining an operators' licence from the Gambling Commission.

"This is not a simple task, but it is also not overtly complex. The key is to satisfy the Commission that you have in place an operation that satisfies the requirements and key objectives of the new law."

These include commitments to ensuring fair and open gambling, the protection of children and other vulnerable persons and the prevention of links between gambling and crime."

At the very least, it'll be odd to know that games like World of Warcraft or Lord of The Rings Online will be legally similar to a game of Baccarat.

Should MMO operators have to display these licenses, or is the whole thing just indicative of the UK governments lack of understanding of modern games? You're the community, you decide!

16 Comments

Discuss in the forums Reply

Omnituens 9th July 2007, 13:01

the whole thing is just indicative of the UK governments lack of understanding of modern games, as you said.

whisperwolf 9th July 2007, 13:08

If the Operators change the competitions from one of chance to a one of skill (ie ask a question) does the need for a licence still apply? and if so how is it any different to a phone in competition to justify the added licence

Tibby 9th July 2007, 13:53

How are they gonna prevent Children from playing it?
Ask everyone to post in their ID before signing up for an account?

dire_wolf 9th July 2007, 14:37

Seriously, i'm speachless :|

so stupid . . .

specofdust 9th July 2007, 14:45

It's depressing that my taxes pay the salaries of people this moronic.

Amon 9th July 2007, 14:48

At the mention of Second Life in the article, that reminds me that I should buy some bondage equipment in the game for me and my 'provisional friend'. Call me provincial.

pendragon 9th July 2007, 15:31

hmm.. I thought you need to be winning something of monetary value to be 'gambling'?

edit: ..answered my own question by reading :P

Quote:

...
the new law creates a new single definition for 'Gambling', which includes playing a game of chance for a prize...

The Act defines a "game of chance" as any game which involves elements of both chance and skill, or where superlative skill can eliminate chance. The definition of "prize" includes cash prizes, products and virtual prizes which can be exchanged for money.

completemadness 9th July 2007, 16:45

so it doesn't apply then

Quote:

and virtual prizes which can be exchanged for money.

However, in games like WoW you are not allowed to exchange virtual goods for real money

pendragon 9th July 2007, 17:13

edit: how do i delete my own post on this new board? .. removing all characters doesnt seem to work

dire_wolf 9th July 2007, 18:17

Quote:

Originally Posted by completemadness
However, in games like WoW you are not allowed to exchange virtual goods for real money

Since when does that stop the lazy or people without enough time/patience, I used to play a lot of WoW and you'd be suprised at the amount of people that buy gold, I had a guild mate offer me £20 real cash for some armour set once lol

Lazarus Dark 9th July 2007, 18:23

That's like calling paintball gambling.
Or Live Role Playing Games like D&D.
How about Monopoly? We used to play for candy when I was a kid. I always knew grandma was a bad influence.
stupid.
But I blame all the people who claim their virtual life is no different from their real life. Guess what? The government says "sure! We'll tax you and regulate your virtual life just like the real one! If thats what you really want!" *government laughs all the way to the bank* So the ones who can't distinguish between life and a game brought this on themselves, and the rest have to suffer.

completemadness 9th July 2007, 20:05

Quote:

Originally Posted by dire_wolf
Since when does that stop the lazy or people without enough time/patience, I used to play a lot of WoW and you'd be suprised at the amount of people that buy gold, I had a guild mate offer me £20 real cash for some armour set once lol

but if it explicitly breaks the EULA, how can you tax somone
its like taxing smuggled cigarettes, you just cant do it, its against the law but it still happens

dire_wolf 9th July 2007, 22:37

Quote:

Originally Posted by completemadness
but if it explicitly breaks the EULA, how can you tax somone
its like taxing smuggled cigarettes, you just cant do it, its against the law but it still happens

Very true, i see where you're coming from

proxess 10th July 2007, 09:11

UK and USA MMO gamers should watch out, pseudo taxing is coming your way!

yakyb 10th July 2007, 11:09

ive just watched episode 2 13 of early edition and whilst not entirely along the same lines as this discussion i can see how it relates; government trying to get out of us what they can and us needing to go trough miles of red tape to get anything we want done. We are already taxed on income now they want to tax now they want to tax us on the objects we get i games (which by the way mr brown are not ours but that of blizzard) i cant see this going to pass as any half decent lawyer should be able to stop this.

edit: i dont see how they could possibly tax us on them anyway as the items in games technically hold no monitory (sp?) value anyway.

Canadian_minx 28th July 2007, 16:44

*faceplant*