Quote:
Originally Posted by chuckiegolf
See below: From the ruling
Big Fish Casino’s Terms of Use, which users must
accept before playing any games, state that virtual chips have
no monetary value and cannot be exchanged “for cash or any
other tangible value.” But Big Fish Casino does contain a
mechanism for transferring chips between users, which can
be utilized to “cash out” winnings: Once a user sells her
chips on a secondary “black market” outside Big Fish
Casino, she can use the app’s internal mechanism to transfer
them to a purchaser. Plaintiff-Appellant Kater alleges that
Churchill Downs profits from such transfers because it
charges a transaction fee, priced in virtual gold, for all
transfers. In other words, Kater alleges that Churchill
Downs “facilitates the process” of players cashing out their
winnings.
Pokerstars used to allow transfers, but several years ago stopped. I think this coincided with Pokerstars selling play chips. So I don't believe what Pokerstars does falls under this ruling.......
More likely, they just don't want to bother with the play chip market in Washington State
The section you quoted is not part of the actual opinion, it is a summary prepared by some court clerk, and a bad summary at that.
The reasoning in the opinion is that the play chips are a "thing of value" because they allow you to purchase the "entertainment value" of continuing to play the games. The court actually rejected the argument that the selling of the chips on a secondary market has anything to do with it. By the reasoning of the opinion being able to purchase additional chips is also not relevant to the determination of it being illegal gambling. Even if the chips were 100% free they still are a thing of value because they are required to get the entertainment value of playing the game.
The opinion also states that any position the WA Gambling Commission takes that play chip games do not constitute illegal gambling is not relevant, it's the court that decides the law not the Gambling Commission.
Because this is a Reported Opinion by an Appeals Court it becomes law and can be cited as precident. Also this is a Federal Appeals Court so this decision constitutes US Federal law and applies to the entire US not just Washington.
The decision has special meaning in Washington state because they have additional laws that allow the gambler to recoup any money they spent to buy play chips. But to repeat this decision states that play chips are a thing of value and that makes play money games illegal gambling anywhere in the US under any definition of gambling I have seen for any state. If any other looser launches a similar lawsuit anywhere else this could blow up fast.
There are only two ways around this, either the decision gets over turned by the US Supreme Court or state laws will have to specifically carve out and define play chip games as not being illegal gambling.
There is almost no chance the Supreme Court would take this on. They only take on cases they see as being important or where there is a split between different district courts. This decision is by the 9th Circuit so if one of the other Circuit's decided a similar case differently then maybe the Supreme Court would consider it but even then I doubt they would see this as important.
Tldr; Play money games are now illegal gambling under US law unless specifically authorized by state law. The "Land of the free" is only the next Preet Baharra away from being shut down and protected from the scourge of play money gambling.
***
I reread the opinion and it may not be as bad as I first thought.
The determination of a "thing of value" was based on Washington State law. Therefore what is a "thing of value" in Washington may or may not be a "thing of value" in other states.
Based on that this probably stays confined to Washington state but there is still some potential it could expand beyond that if similar lawsuits are filed in other states. This is still a published opinion by a federal circuit Court so it can be cited as precident.
Last edited by Mike Haven; 04-07-2018 at 01:51 PM.
Reason: Two posts merged