Gambling Enters Second Act in UK

Massive Multiplayer Online Games (MMO's(, such as online Lord of the Rings, may soon be redefined and classified as official online gambling sites under the remaining provisions of the Gambling Act 2005. The new laws will create a single definition for gambling - as any and all games which incorporate the use of both chance and skill in order to win a prize.

According to the revised Act, "prize" includes cash, products, and virtual prizes that hold monetary worth, and "games of chance" as any game which involves elements of both chance and skill, or where superlative skill can eliminate chance. The new law will treat all MMOs that run competitions or offer prizes in the same manner as an online poker site, or any gambling site for that matter. As a result, they will be subject to the laws and penalties as these more traditional forms.

The act is designed to regulate the Internet casino industry, which companies will be able to operate within the United Kingdom for the first time. According to Alex Chapman of Law firm Campbell Hooper, "its main purpose is to update the law, which in some cases is over 50 years old and is therefore inadequate for the modern world". However, some MMO operates may have their games deemed illegal as soon as the law comes into force this September.

In order to satisfy the requirements of this new law, MMO operators may have to resort to obtaining an official license from the Gambling Commission. As difficult as this may be for them, it will allow them to steer clear of prosecution. As Chapman explained, "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".

The revision will also ensure fair and open gambling, protection of children and vulnerable persons, as well as the prevention of links between crime and gambling. Chapman has advised all current operators of MMO games (including those interested in entering the market) to seriously consider applying for a license. The firm is already working in association with several MMO clients, and is at present holding talks with the Gambling Commission over the issue.  

For all MMO players, this is without a doubt something that should be verified before playing, as playing at an illegal gambling site could lead to criminal offense.