A discussion paper has been published by the Gambling Commission that seeks to outline its rad flags around virtual currencies, social gambling and eSports.
The GC has assessed that the lines that demarcate “some social gaming products and gambling are blurring”, and the “technological developments and expansion of digital or virtual currencies mean that operators of some social gaming products may be offering facilities for gambling”. This is all arriving at a time when there is already a controversy around skin betting.
The General Counsel at the Gambling Commission, Neil McArthur said, “We are concerned about virtual currencies and ‘in-game’ items, which can be used to gamble”
He further added that, “We are also concerned that not everyone understands that players do not to stake or risk anything before offering facilities for gaming need to be licensed. Any operator wishing to offer facilities for gambling using virtual currencies, to consumers in Great Britain, must hold an operating license.”
“Any operator who is offering unlicensed gambling must stop or face the consequences”
The Gambling Commission has also tightened its regulatory scope on eSports by releasing a statement mentioning that it “expects operators offering markets on eSports to manage the risks, including the risk that children and young people may try to bet on such events given the popularity of eSports with children and young people.”
Furthermore the GC counsel, McArthur made it very clear that the commission views social gaming the same way it did previously since the release of its paper on social gaming in January of 2015, but they also mentioned that “if we discover that items such as additional spins, credits or even loyalty points are tradeable, then we will be taking a keen interests.”