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China forces game producers to reveal loot box odds
Using addictive animations and other psychological tricks, games like Overwatch and Hearthstone hook you on free loot boxes, then make you pay for the rush with real money. That sounds like gambling to China's Ministry of Culture, so it's instituting some new rules starting in May 2017. The government will force publishers to post the probability "of all virtual items, props and services" available in loot boxes, along with recent results, on the game's official website, according to the ruling.
Valve says it's not responsible for 'CS:GO' gambling
Earlier this month, Washington state told Valve to stop allowing Counter-Strike: Global Offensive (CS:GO) gun skin transfers through Steam. The state's Gambling Commission argued that Valve was facilitating a "large, unregulated black market," and gave it until October 14th to explain itself. Yesterday (three days after that deadline), Valve responded, vehemently denying any wrongdoing. In a copy of a letter to the Commission, sent by Valve to Engadget, the company's legal counsel Liam Lavery says there's "no factual or legal support" for the allegations. "As we have explained on multiple occasions, Valve is not engaged in gambling or the promotion of gambling, and we do not 'facilitate' gambling," Lavery states. "We were surprised and disappointed that the Commission chose to publicly accuse Valve of illegal activity and threaten our employees with criminal charges."
Washington state orders Valve to end 'Counter-Strike' gambling
For Washington state, it's not enough for Valve to distance itself from gun skin gambling in Counter-Strike: Global Offensive -- it wants the company to put an end to the practice. The state's Gambling Commission has ordered Valve to "stop allowing the transfer" of gun skins for gambling through Steam. The gaming giant has until October 14th to explain how it's obeying Washington gambling laws -- if it ignores the request or can't prove that it's squeaky-clean, it might face "additional civil or criminal action."
YouTube star charged over 'FIFA' game betting
The consequences of promoting dodgy bets on video games can extend well beyond account suspensions and tarnished reputations. YouTube star Craig Douglas (aka NepentheZ) and FUTgalaxy owner Dylan Rigby have both been charged with violating the UK's Gambling Act through their respective businesses. The two allegedly used their online presences to push lotteries and "unlawful gambling" in FIFA 16 matches through bets with in-game coins. Douglas is also accused of encouraging underage gambling by refusing to warn viewers that bets were only for people 18 and over.
Twitch streamer banned for shady betting on 'Counter-Strike'
Recently, some high-profile video game streamers have been exposed as owning third-party gambling sites where players can bet on the outcome of matches for Counter-Strike: Global Offensive — an obvious conflict of interest. Last week, Twitch announced that anyone violating a game's terms of service would be prohibited from broadcasting, and they've followed up by banning a prominent streamer who had 1.3 million followers.
Twitch says 'CS:GO' gambling broadcasts are prohibited
The niche world of Counter-Strike: Global Offensive skin gambling is starting to crumble. Last week, two YouTube personalities were outed as the owners of CS:GO Lotto, a third-party gambling website that used CS:GO weapon skins as currency for online casino games. Yesterday, Valve announced the service was in violation of its terms and service agreement. Now, Twitch is chiming in, stating that any stream that violates a game's service agreement is prohibited from broadcasting -- specifically calling out gambling businesses that misuse Steam's OpenID API.
Valve distances itself from 'Counter-Strike' gambling sites
Last week the internet was buzzing with news that a few popular YouTube gaming personalities were involved in ethically shady business ventures. No, different ones from this week. What happened was Tom "Syndicate" Cassell and Trevor "TmarTn" Martin own the website CS:GO Lotto, which deals in gambling with randomly-dropped skins that change the appearance, but not function of weapons and other items in Counter-Strike: Global Offensive. The cosmetic items come in crates, and those crates are unlocked with real money. So, those unlocked-for-cash skins become currency for betting on lotteries and casino-style games.
Gamble on your smartphone in MGM's Vegas casinos
If you wanted an even more convenient way to gamble while strolling the floors of casinos, MGM Resorts has the answer. Today, they announced a new mobile platform that lets users bet money on classic games so long as they're within the confines of the company's Las Vegas locations.
Nevada gives its first license to a daily fantasy sports game
Nevada's gaming board shut down daily fantasy games from DraftKings and FanDuel late last year for fairly obvious reasons: they're gambling, and they need a license to operate in the state. Now for the first time, the board has issued a license to a daily fantasy operator called USFantasy. Unsurprisingly, the Vegas-approved fantasy game is planning to operate through the race and sports books of casinos, and won't look much like other daily fantasy sports games.
DraftKings and FanDuel stop operating in New York, for now
We hope you aren't an ardent DraftKings or FanDuel fan in New York -- that reprieve they got isn't going to last. The state's Attorney General has reached agreements with both daily fantasy sports sites that will have them shut down paid contests in New York from March 21st until at least September, when they get to appeal a ruling that put them on the wrong side of the law. You can still use them as a New Yorker if you're out of state, but you're otherwise out of luck.
Virginia sends nation's first daily fantasy bill to the governor
As DraftKings and FanDuel make their case for daily fantasy sports in each state in the US, the Virginia legislature approved a framework to regulate the games. The Fantasy Contests Act (SB 646) passed both the Senate and the House in the state, making the Commonwealth's General Assembly the first to approve guidelines for the sports gaming craze that has taken the US (and UK) by storm. Of course, the bill still has to be signed by Governor Terry McAuliffe.
DraftKings loses its exclusive ESPN ad deal
Things keep getting worse for DraftKings, the embattled daily fantasy sports site. Not only is it currently under investigation (or already banned) by a number of state attorney generals for violating online gambling statutes and losing payment processing partners, Yahoo Finance reported on Tuesday that it's losing a deal to be the exclusive daily fantasy advertiser on ESPN.
DraftKings is taking its daily fantasy sports to the UK
While daily fantasy sites DraftKings and FanDuel battle to stay open in the US, the former outfit is taking its games to the UK. Starting today, sports fans across the pond can take advantage of DraftKings' "innovative skill-based contests" to try and win cash. As you might expect, Premier League and Champions League soccer football is getting top billing for the contests alongside 11 other major sports, including NBA, NFL, NHL, UFC and eSports. In fact, DraftKings has a dedicated soccer site to keep you up to date on all the latest happenings. What's more, sports betting is legal in the UK, so the site stands to face less scrutiny there. But it's totally not gambling.
Hawaii AG declares that daily fantasy is indeed gambling
Hawaii Attorney General Doug Chin issued an official opinion on Thursday arguing that daily fantasy sports, like DraftKings and Fanduel, constitute gambling under Hawaiian law. "Gambling generally occurs under Hawaii law when a person stakes or risks something of value upon a game of chance or upon any future contingent event not under the person's control," Chin wrote, "The technology may have changed, but the vice has not."
DraftKings and FanDuel will remain open in NY during appeal
Daily fantasy sites DraftKings and FanDuel are free to continue operating in the state of New York. After a judge banned the gaming services from taking funds for a few hours last month, an appeals court ruled that the two companies could continue games in the state until an appellate panel reviewed the case. According to ESPN's Darren Rovell, the panel has done so, and it decided that the sites could stay open during the appeals process. The decision follows an amended lawsuit by New York attorney general Eric Schneiderman asking for the companies to not only return profits made in the state, but refund lost money and pay a $5,000 fine per customer. Refunding the entry fees alone could cost the sites up to $200 million.
FanDuel warned staff against winning too often on rival sites
DraftKings and FanDuel may have bitten off more than they can chew when they sued New York to keep their daily fantasy sports games alive in the state. FanDuel's corporate policies from before it self-regulated have been entered into evidence, and some of them only seem to confirm worries about staff abusing their power while playing on rival sites. For a start, the site told workers to "never be among the top five" players on any daily fantasy site, or the top 10 on the tracking site RotoGrinders. They also couldn't have disproportionate numbers of entries in tournaments, and they were supposed to avoid using information on player lineups whenever possible. In other words, don't be too successful -- we don't want you raising suspicions that the games might be rigged.
NY Attorney General targets Yahoo's daily fantasy sports next
Yahoo is no stranger to fantasy sports, and its foray into daily fantasy games grabbed the attention of regulators in New York. The internet company is being included in the inquiry into daily fantasy sports by the New York Attorney General's office. Yahoo was subpoenaed alongside DraftKings and FanDuel as Attorney General Eric Schneiderman looks to ban the games in his state. A distant third in the world of daily fantasy, Yahoo launched its version in July and continues to accept payments in the state of New York. However, the company shut down its daily fantasy option in Florida last month after an investigation of the industry began by a federal grand jury. With Schneiderman looking into other operators besides the two top names, it seems his goal is to rid New York of daily fantasy sports entirely and classify the games as gambling. And if he's successful, it'll be interesting to see if other states follow suit. [Image credit: Getty Images]
DraftKings, FanDuel and the feds: The daily fantasy story so far
This season, if you're a sports fan or are even sports fan-adjacent, two words have become nearly inescapable: daily fantasy. The suddenly booming industry has steamrolled TV, radio and the internet with ads promising that playing this "game of skill" can turn your intimate knowledge of sports into big bucks. Its annoyingly bombastic ads alone are enough to make anyone skeptical, since even in this fantasy not everyone can wind up an instant million dollar winner. All of the publicity has worked in FanDuel and DraftKings' favor, making daily fantasy games more popular than ever. That is, until a leak that showed the possibility of insider trading sparked a backlash. Now daily fantasy has the full focus of powerful government figures who may decide if the games will continue.
DraftKings and FanDuel sue to stop New York Attorney General's ban
Following New York Attorney General Eric Schneiderman's request for daily fantasy sports sites DraftKings and FanDuel to stop operating in his state, the two sites filed a lawsuit against the AG. Filing a petition with the New York Supreme Court, both sites allege that Schneiderman's office illegally interfered with their business operations by threatening payment processing vendors if they didn't stop handling transactions for players in New York. The Attorney General also declared the two illegal gambling sites earlier this week, threatening to ban them if they didn't stop operations. The companies maintain that their version of fantasy sports do indeed require skill rather than luck, which separates them from regular ol' gambling.
FanDuel and DraftKings are getting shut down in New York too
The New York Times and ESPN are reporting that New York Attorney General Eric Schneiderman has followed his counterpart in Nevada by asking the two biggest daily fantasy sites to stop taking bets in his state. DraftKings and FanDuel have been struggling to escape a controversy that exploded when reports surfaced that employees were regularly playing, and winning, on the competing websites, and now are facing a future of tighter regulation. According to the letter Schneiderman has decided the games constitute illegal gambling under the laws of New York, and should be banned as games of chance. This is particularly complicated for FanDuel, which has its headquarters in New York. Update: DraftKings said in a statement to Engadget that "We strongly disagree with the reasoning in his opinion and will examine and vigorously pursue all legal options available to ensure our over half a million customers in New York State can continue to play the fantasy sports games they love." Meanwhile FanDuel says, "The game has been played -- legally -- in New York for years and years, but after the Attorney General realized he could now get himself some press coverage, he decided a game that has been around for a long, long time is suddenly now not legal." You can read both statements -- along with a quote from AG Schniederman -- in full after the break.
