Gambling Should Be Illegal Reddit

I don't think it should be banned but controlled in such a way that it is not visible to children. Advertising on a TV show after the watershed is fine but its all over football shirts etc., which I don't think it should be. Adults know gambling exists and it is their choice if they choose to gamble.

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Game companies now lean heavily on loot boxes to monetize their products. Legislators around the world are threatening to impose regulations on the boxes, claiming that they're gambling. Industry groups, however, insist that the boxes are not.

I play games that are funded with loot boxes. My favorite game of all time, Dota 2, is funded almost exclusively through loot boxes. Regulations that tightly restrict or absolutely prohibit loot boxes will definitely hurt the gaming industry and will hurt, perhaps even fatally, games I love. There will definitely be economic harm, and games companies will have to figure something out to fill the monetary gap. It's no surprise that game companies are defending the practice.

1. Loot boxes may soon be classified as products that teach children aspects of gambling, according to The Guardian. What's the news: According to The Guardian, the Department for Digital, Culture, Media and Sport in the United Kingdom will launch a new investigation into the common feature of loot boxes — a virtual item that can be redeemed for virtual items, often at the cost of the gamer.
2. In conclusion, gambling should be abolished because it leads to addiction, which can cause mental and financial damage. Crimes are often associated with gambling as it is committed by problem gamblers in order to pay off debts, and that they typically reached a severe stage after a few years of playing in casino.

Gambling Should Be Illegal Reddit Sites

But here's the thing: loot boxes are gambling. The essential features of the transaction match those of gambling, the reward pathways and addiction mechanisms are those of gambling, and playing dumb about it, as the industry is currently doing, is a bad look.

The loot box mechanism is straightforward: you buy a box for a fixed price, and you receive a random reward. Some rewards are commonplace and low value; others are rare and high value. So far, so gambling: these essential features are found in roulette, slot machines, betting on horses, raffles, and lotteries.

The excitement loot boxes offer their buyers is comparable, too: the moment of uncertainty, the high of getting a big win, the low of missing out. This is the same high as the one gamblers enjoy. Regulators in Belgium and the Netherlands have agreed that this basic structure makes loot boxes a kind of gambling.

Game companies defend loot boxes by saying they're not the same as gambling because you can't lose with them: you always win something, even if it's not very valuable. This is a weak defense. For one thing, that consolation prize may, in fact, be worthless.

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Consider Dota 2's loot boxes. They offer a number of standard, low-value prizes, along with a small chance of getting a 'rare,' 'very rare,' or 'ultra rare' high-value prize. Reddit poker mtt strategy cheat. The loot boxes are designed so that if you buy as many boxes as there are standard prizes, you'll always get one of each standard prize. But if you keep on buying more copies of the same loot box in order to spin the dice yet again and have another chance at one of those rare prizes, you will, through necessity, receive duplicates of the standard items. These duplicates are, functionally, worthless: Dota 2's items are cosmetics for the game's heroes, and the heroes simply can't equip more than one copy of any given item. The first copy has value; the subsequent ones don't, as you have no way of using them.

More fundamentally, this is a red herring anyway. I couldn't claim that my roulette table, with a minimum bet of $5, somehow became 'not gambling' because I promised you'd always get at least five cents back. Such a roulette table would ever-so-slightly change the economics—I wouldn't make quite as much money—but the fundamental features of the transaction are not meaningfully altered. You pay your stake, and you get a low chance of a big payout and a big chance of a negligible one. Such a scheme would, rightly, be recognized as the gambling it is.

The other argument that comes up is that loot boxes aren't gambling because there's no way of exchanging the prizes for money. Some prizes may be rare, but, per this argument, they're not valuable, because you can't exchange them for cash. This argument feels rather self-defeating: if these prizes had no value at all then people would not spend real cash to get a chance of winning them in the first place. If they truly have no economic value at all, the games companies should be giving them away for free, surely. And yet, they don't.

This argument looks even weaker in the face of services such as Valve's Community Market. The prizes from Valve's loot boxes can be sold (usually after some period of trading ineligibility, sometimes lasting a year or more) to other Steam users through Community Market. You can't sell them for 'real' money—you only receive Steam credit in your account, so you can only spend it on other games or Community Market purchases—but the every dollar spent on the market originated as a real dollar. Valve also takes a commission on those sales; those Steam account dollars are backed by real money, even if Valve's the only one allowed to make the conversion.

Beyond this, there's a grey market of trading sites that allows these digital items to be directly traded for cash. Such sites may not be official, but they don't have to be official to debunk the notion that the loot box prizes are valueless.

There's science to gambling, and it's used in loot boxes, too

With loot boxes structured like gambling, it's not surprising that the behavior they encourage is comparable to that of gambling. There's an action the game company wants to encourage—buying loot boxes—and they design the loot box system to entice players to keep spending the money. To do this, they offer reinforcement: you'll win (by getting a rare reward) every now and then, providing a reward, a dopamine hit, and an incentive to keep on feeding money into the machine. Not every box will yield a valuable prize, and players don't know how many boxes they'll need to buy before getting a reward, a style of reinforcement called a 'variable-ratio schedule.' This reinforcement approach is known to encourage people to quickly try, try, try again to get the reward they seek, making it a powerful element of gambling systems. Slot machines work the same way.

The strength of variable-ratio schedule conditioning in the context of loot boxes isn't certain—we can't really say how much extra people are coaxed into spending. But the effect itself (and its presence in loot boxes) is beyond doubt.

Even more subtle design elements beyond the basic mechanics tend to encourage bad behavior. It's known that 'near misses' give gamblers the 'evidence' they need that they're close to a big win, encouraging longer play. When opening a Dota 2 loot box, all the possible rewards are shown spinning around. As they spin, they'll fade out until only one (or two, if you're lucky enough to also get a rare prize) reward is left: the one you've won.

This animation gives the impression that the options are being whittled down and that if the rare item had only hung on a moment longer you'd have won it. This near-miss stimulates further gambles. But it's entirely illusory: the actual reward is determined the moment the button to open the box is pressed. The animation doesn't mean anything, and there's no such thing as a near-miss.

Counter-Strike: Global Offensive has a similarly dishonest presentation: the possible prizes spin on a carousel, and whichever item is under the needle is the one you win. This means that you can miss a rare item by millimeters, if the needle just misses the item prize you actually wanted. Except it's fake; as with Dota 2, the reward is determined as soon as you open the box. The carousel, the spinning, the needle? It's all for show.

This video of a streamer opening CS:GO loot boxes shows (with a fair amount of foul language) these effects in practice. He sits there willing the carousel to spin just that little bit further (or getting frustrated when it rolls just past an item he wants), he gets excited when he sees a rare prize on the carousel, he detects 'patterns' that aren't real. He ultimately ends up opening more boxes and paying more money then he originally planned.

Loot boxes work like gambling, and they're designed like gambling. They're designed to provoke compulsive reward-seeking behavior. Not in everyone, but certainly in a few, the 'whales' that so many of these game economies depend on. I'm not a puritan; I don't think that gambling should be banned, and I've somewhat enjoyed traditional gambling in the past. But traditional gambling is regulated in important ways: minors are prohibited from participating, and there are often constraints on odds and win rates and perhaps even oversight to ensure the rules are followed. And in spite of these things, addiction remains an issue.

The low stakes and limitations on prizes might justify a different regulatory scheme for loot boxes than for, say, slot machines or table games. We already regulate raffles differently from casinos for much the same reason: they, too, have different stakes and prizes. But the underlying justification for those regulations—concerns over both fairness and addiction—apply to loot boxes, and so some kind of regulation is highly desirable.

If games companies want to continue to use loot boxes, that is—for now—their choice. I'd like to think that the employees at these companies would reflect on what they've done and perhaps decide that, in spite of the economics loot boxes offer, they don't really want to be involved with something so exploitative and with so much potential for harm. But if they want to continue to use loot boxes, they should at least acknowledge what they really are—gambling—and they should be regulated accordingly.

Nonprofit leaders commonly think of grant money and tax-deductible donations when fundraising, but in many states nonprofit status allows groups to legally conduct activities that would otherwise be criminalized as illegal gambling under state law. Inadvertently violating these gambling laws can have steep consequences so if your organization is planning an event that involves some form of gambling, it pays to do it right.

First off, gambling is illegal . . .
In Arizona, gambling occurs anytime something of value is given in exchange for, 'the opportunity to obtain a benefit from a game or contest of chance or skill or a future contingent event . . . .'[1] In general, an activity may be deemed gambling any time the host of an activity:

• charges a cover or requires any kind of donation or fee to participate;
• requires a minimum purchase (of anything) to participate;
• takes any percentage of the money wagered or won by players; or
• cloaks participation fees by charging participants some form of user, equipment, or rental fee for their use of tables, chips, cards, etc.

Arizona law provides six categories of lawful gambling. Each, however, includes the requirement that every participant be 21 years of age or older.

Raffles [2]
In Arizona, conducting a raffle is a class 5 felony. The Arizona Attorney General's Office has issued an opinion defining a raffle as, 'a form of lottery in which each participant buys a ticket for valuable consideration in order to be eligible for a random drawing to win a prize or prizes.'[3] However, there is an exemption for raffles conducted by certain tax-exempt nonprofits if:

• the raffle is sponsored by a nonprofit that has been in existence for 5 years;
• no insider receives a direct or indirect pecuniary benefit other than participation on an equal basis with all other participants; and
• no person participates directly or indirectly in the management, sales or operation of the raffle other than the non-profit's employees and agents.

In Arizona, there is also a separate exception for small raffles conducted by booster clubs, civic clubs or political clubs or organizations where the proceeds of the raffles do not exceed $10,000 a year.

Many jurisdictions require non-profits to obtain a permit to conduct a raffle. Permits can take weeks or even months to process. In addition, there are a number of tax issues that must be considered when planning a raffle. For a more in-depth analysis of raffles, check out our blog post, Charity Raffles – Tread Carefully.

Poker Tournaments/Casino Nights

Texas Hold ‘Em and Casino Nights can be a great way to attract positive attention and good-will for charitable organizations, but be aware that events like these are likely to be illegal. The Arizona Attorney General issued an opinion on this very matter, concluding that the only way for nonprofits to legally conduct an event like Casino Night is for it to either (a) be run like a raffle or (b) to not charge anyone to participate.[4]

Running a Casino Night like a raffle takes a bit of imagination, but a nonprofit could conceivably do so by giving raffle tickets as consideration for donations in lieu of chips. The raffle tickets would then be used as 'the medium for their play' and at the end of the night, the only things of value given to participants are those that are raffled off. Who says the AG isn't creative?

The alternative is to not require anything of value from those who would like to participate. An activity must include risking or giving something of value to participate to be considered gambling. Therefore, by removing the value from the equation the activity is no longer gambling. The nonprofit would hand out chips being very careful to not require donations or the purchase of anything during the entire duration of the event – including entry fees, cover charges, drinks, food, etc. If you do this appropriately, you could then take voluntary donations from those who wish to contribute.

Office Pools

Office pools cannot benefit nonprofits financially. An office pool exists when employees wager money on their best guess as to the outcome of some future event (birth of a baby, winner of March Madness, etc.) with the winner being whoever was most accurate. This activity is legal only if all the wagered money (or whatever medium is of value) goes back to the participants, making office pools of no benefit to nonprofits looking to raise money.

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Fantasy Leagues

Nonprofits cannot use fantasy leagues to raise money. In a fantasy league the participant purchases an ideal team roster comprised of players the participant ‘drafted'. At the end of the season, whoever's team had the best performance relative to other teams in the league wins either the entire pool of money or some portion of it. Like office pools, unless all of the money is returned to the participants the activity is illegal. Because no money can go to anyone other than the participants, nonprofits cannot financially benefit from this fantasy leagues.

While charity gambling events can offer an exciting twist to fundraising events, it isn't worth risking criminal penalties. If your group's fundraising idea could be viewed as a gambling activity, you should consult an attorney before you proceed. The gamble may not be worth the risk.

[1] A.R.S. § 13-3301(4).
[2] A.R.S. § 13-3302(B)
[3] Ariz. Op. Atty. Gen. No. I87-101 at p.2 citing Gambling Devices (Cheyenne Elks v. State, 694 P.2d 711, 718 (Wyo. 1985)
[4] Ariz. Op. Atty. Gen. No. I87-101

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Loot boxes work like gambling, and they're designed like gambling. They're designed to provoke compulsive reward-seeking behavior. Not in everyone, but certainly in a few, the 'whales' that so many of these game economies depend on. I'm not a puritan; I don't think that gambling should be banned, and I've somewhat enjoyed traditional gambling in the past. But traditional gambling is regulated in important ways: minors are prohibited from participating, and there are often constraints on odds and win rates and perhaps even oversight to ensure the rules are followed. And in spite of these things, addiction remains an issue.

The low stakes and limitations on prizes might justify a different regulatory scheme for loot boxes than for, say, slot machines or table games. We already regulate raffles differently from casinos for much the same reason: they, too, have different stakes and prizes. But the underlying justification for those regulations—concerns over both fairness and addiction—apply to loot boxes, and so some kind of regulation is highly desirable.

If games companies want to continue to use loot boxes, that is—for now—their choice. I'd like to think that the employees at these companies would reflect on what they've done and perhaps decide that, in spite of the economics loot boxes offer, they don't really want to be involved with something so exploitative and with so much potential for harm. But if they want to continue to use loot boxes, they should at least acknowledge what they really are—gambling—and they should be regulated accordingly.

Nonprofit leaders commonly think of grant money and tax-deductible donations when fundraising, but in many states nonprofit status allows groups to legally conduct activities that would otherwise be criminalized as illegal gambling under state law. Inadvertently violating these gambling laws can have steep consequences so if your organization is planning an event that involves some form of gambling, it pays to do it right.

First off, gambling is illegal . . .
In Arizona, gambling occurs anytime something of value is given in exchange for, 'the opportunity to obtain a benefit from a game or contest of chance or skill or a future contingent event . . . .'[1] In general, an activity may be deemed gambling any time the host of an activity:

• charges a cover or requires any kind of donation or fee to participate;
• requires a minimum purchase (of anything) to participate;
• takes any percentage of the money wagered or won by players; or
• cloaks participation fees by charging participants some form of user, equipment, or rental fee for their use of tables, chips, cards, etc.

Arizona law provides six categories of lawful gambling. Each, however, includes the requirement that every participant be 21 years of age or older.

Raffles [2]
In Arizona, conducting a raffle is a class 5 felony. The Arizona Attorney General's Office has issued an opinion defining a raffle as, 'a form of lottery in which each participant buys a ticket for valuable consideration in order to be eligible for a random drawing to win a prize or prizes.'[3] However, there is an exemption for raffles conducted by certain tax-exempt nonprofits if:

• the raffle is sponsored by a nonprofit that has been in existence for 5 years;
• no insider receives a direct or indirect pecuniary benefit other than participation on an equal basis with all other participants; and
• no person participates directly or indirectly in the management, sales or operation of the raffle other than the non-profit's employees and agents.

In Arizona, there is also a separate exception for small raffles conducted by booster clubs, civic clubs or political clubs or organizations where the proceeds of the raffles do not exceed $10,000 a year.

Many jurisdictions require non-profits to obtain a permit to conduct a raffle. Permits can take weeks or even months to process. In addition, there are a number of tax issues that must be considered when planning a raffle. For a more in-depth analysis of raffles, check out our blog post, Charity Raffles – Tread Carefully.

Poker Tournaments/Casino Nights

Texas Hold ‘Em and Casino Nights can be a great way to attract positive attention and good-will for charitable organizations, but be aware that events like these are likely to be illegal. The Arizona Attorney General issued an opinion on this very matter, concluding that the only way for nonprofits to legally conduct an event like Casino Night is for it to either (a) be run like a raffle or (b) to not charge anyone to participate.[4]

Running a Casino Night like a raffle takes a bit of imagination, but a nonprofit could conceivably do so by giving raffle tickets as consideration for donations in lieu of chips. The raffle tickets would then be used as 'the medium for their play' and at the end of the night, the only things of value given to participants are those that are raffled off. Who says the AG isn't creative?

The alternative is to not require anything of value from those who would like to participate. An activity must include risking or giving something of value to participate to be considered gambling. Therefore, by removing the value from the equation the activity is no longer gambling. The nonprofit would hand out chips being very careful to not require donations or the purchase of anything during the entire duration of the event – including entry fees, cover charges, drinks, food, etc. If you do this appropriately, you could then take voluntary donations from those who wish to contribute.

Office Pools

Office pools cannot benefit nonprofits financially. An office pool exists when employees wager money on their best guess as to the outcome of some future event (birth of a baby, winner of March Madness, etc.) with the winner being whoever was most accurate. This activity is legal only if all the wagered money (or whatever medium is of value) goes back to the participants, making office pools of no benefit to nonprofits looking to raise money.

Gambling Should Be Illegal Reddit Streams

Fantasy Leagues

Nonprofits cannot use fantasy leagues to raise money. In a fantasy league the participant purchases an ideal team roster comprised of players the participant ‘drafted'. At the end of the season, whoever's team had the best performance relative to other teams in the league wins either the entire pool of money or some portion of it. Like office pools, unless all of the money is returned to the participants the activity is illegal. Because no money can go to anyone other than the participants, nonprofits cannot financially benefit from this fantasy leagues.

While charity gambling events can offer an exciting twist to fundraising events, it isn't worth risking criminal penalties. If your group's fundraising idea could be viewed as a gambling activity, you should consult an attorney before you proceed. The gamble may not be worth the risk.

[1] A.R.S. § 13-3301(4).
[2] A.R.S. § 13-3302(B)
[3] Ariz. Op. Atty. Gen. No. I87-101 at p.2 citing Gambling Devices (Cheyenne Elks v. State, 694 P.2d 711, 718 (Wyo. 1985)
[4] Ariz. Op. Atty. Gen. No. I87-101

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