Technology, Media & Telecommunications

Game developers have been increasingly integrating cryptocurrency and Non-Fungible Tokens (NFTs) within their games hoping these digital assets will increase their games’ longevity with an expanded content offering. But, early feedback suggests these features risk fan-blowback so developers are advised to proceed deliberately.

Although the Genting resort is among the most ambitious projects, the intersection of AI and casinos has become increasingly popular among the gaming industry. Potential applications include combatting fraud, optimizing casino floor ROI, and tracking player performance. These considerations make the intersection of AI and gambling a valuable, lucrative, and beneficial one. However, utilizing AI in casinos raises a myriad of legal questions. The second of our two-part series considers the legal implication of these questions for gaming industry parties.

AI technology implementation in casinos is a relatively new phenomenon that has prioritized efficient data collection, curbing gambling addiction, and importantly combating fraud and cheating. This implementation promises more secure gameplay and better monitoring of players. AI recordkeeping and data analysis can detect players’ specific patterns and habits, while also providing accurate predictions about behavior and preferences. In the security context however, AI is still largely a promising, but developing process.

Earlier this month, a district court in the Northern District of California ended a suit against Apple concerning loot boxes. That suit alleged that Apple facilitated in-app purchases of “gems,” a virtual currency used in Supercell’s game Brawl Stars. A decision issued in a similar suit brought against Google ended last week on similar grounds. The case, brought by the same attorneys on the same day as the Apple case, sought to hold Google responsible for games (in this case, Bandai’s Dragon Ball Z Dokkan Battle and Square Enix’s Final Fantasy Brave Exvius) in its Play Store that use loot boxes.

In another blow to plaintiffs suing game developers and publishers over loot boxes, a district court in the Western District of Washington granted summary judgment in favor of Valve Corporation. The case concerns the use of loot boxes in Valve’s Counter-Strike: Global Offensive, Defense of the Ancients 2, and Team Fortress 2 games.

Polymarket will wind down existing contracts and pay $1.4 million to settle U.S. regulators’ allegations it offered illegal trading.

A California federal district judge put an end to a suit brought against Apple under California’s Unfair Competition Law (Business & Professions Code § 17200). The suit alleges that loot boxes in games are akin to illegal slot machines, which are prohibited by California law. Rather than suing the game publishers themselves, plaintiffs sued Apple for hosting games with loot boxes in the Apple App Store.

As we discussed in our prior post, Blockchain and Cryptocurrency: The Future of Online Gambling?, the blockchain technology offers the online gambling industry security, privacy, efficiency, and cost-effectiveness. While some online casinos have authorized cryptocurrency payments, others have gone further by building platforms entirely on the blockchain.

Plaintiffs suing Valve Corporation over the company’s use of loot box in several top videogames have moved for class certification in Seattle federal court.

This article discusses how cryptocurrency and blockchain technology are potentially disruptive technologies for the online gambling industry.

Most states with recently passed sports betting legislation include esports under the definition of “sporting event” or “sports event.” Maryland’s HB940, Arizona’s HB2772, Wyoming’s HB133, and Connecticut’s HB6451 include “electronic sports,” “e-sports,” or “video game competitions” within their definition of a “sporting event.”

On June 9, 2021, Nevada Senate Bill 165 (SB 165) was passed and signed into law by Governor Steve Sisolak, establishing the Esports Technical Advisory Committee (Committee).

Brazil, the 13th largest videogame market in the world as of 2017, may be the latest jurisdiction to adopt rules prohibiting or limiting loot boxes in videogames.

Winston & Strawn’s Video Games, Gaming, and Esports Group is pleased to announce the launch of their new series, The Play Book.