Articles Posted in Gamblification/Gambling

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According to a report on Inside Social Games, Caesars Interactive Entertainment has acquired Buffalo Studios LLC, a social and mobile games developer most known for its Bingo Blitz and Bingo Rush. The terms of the deal were not disclosed.

caesers interactive ent.jpg“The Bingo Blitz business represents a unique opportunity for Caesars Interactive Entertainment to add to our portfolio of social and mobile game assets and to grow our market share across all interactive platforms,” said Mitch Garber, Chief Executive Officer for Caesars Interactive Entertainment.

This acquisition comes on the heels of CIE’s acquisition of Playtika and its vow to be Number 1 in the space. According to its website, CIE is actively pursuing further expansion and acquisitions to build upon its capabilities and product portfolio.

 

 

buffalo studios.jpgThe intersection of gambling and social games remains a growing area as the legislation to permit real money gambling in the U.S. crawls along at a snail’s pace. Check out our previous posts on this topic.

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With the meteoric rise of Pinterest, many companies are leveraging its popularity. One way this is happening is that Brands are creating contests and promotions around users “pins.” This is a growing trend in the use of social media for contests, promotions and sweepstakes. However, this is an area that is highly regulated, and the law can vary widely from state to state. As a result, Pinterest has issued new Promotions and Marketing Policies.

Among other things, Pinterest has provided the following list of Do’s and Don’ts

Do:

  • Encourage authenticity: Reward the quality of pinning, not just the quantity of it.
  • Promote your contest: Link to your Pinterest account or contest board from your website, social media and marketing channels.
  • Prevent spam: Read up on our anti-spam measures to help keep your contest fun and useful.
  • Make getting involved easy: Create clear instructions and a simple process.

Don’t:

  • Encourage spam: Steer clear of contests that encourage spammy behavior, such as asking participants to comment repeatedly.
  • Run a sweepstakes where each pin, repin, or like represents an entry. Ask pinners to vote with a repin or like.
  • Overdo it: Contests and promotions can be effective, but you don’t want to run a contest too often.
  • Suggest that Pinterest sponsors or endorses you: Make sure you don’t say or imply this anywhere in your marketing materials or branding.

Additionally, the Pinterest policies state:

If you use Pinterest as part of a contest or sweepstakes, you are responsible for making sure it complies with all legal requirements. This includes writing the official rules, offer terms and eligibility requirements (ex: age and residency restrictions), and complying with marketing regulations (ex:, registration requirements and regulatory approvals). These rules can vary from place to place, so please work with a lawyer or other expert to make sure you’re in compliance. You should also always comply with our Terms of Service. Please note that Pinterest isn’t responsible or liable in any way to you if you use us as part of your promotion.

The rise of promotions and contests on Pinterest is part of an overall trend regarding the increased use of gamblification. For more information on the legal issues with gamblification, please email us for a copy of our Client Advisory on Legal Issues with Gamblification.

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As the online gaming market slowly evolves, many companies are preparing to capitalize on it once the legislative process moves forward. In one of the latest announcements, Zynga has applied to get licensed in Nevada. According to a recent statement from Zynga:

Zynga has filed its Application for a Preliminary Finding of Suitability from the Nevada Gaming Control Board. This filing continues our strategic effort to enter regulated RMG markets in a prudent way. We anticipate that the process will take approximately 12 to 18 months to complete. As we’ve said previously, the broader U.S. market is an opportunity that’s further out on the horizon based on legislative developments, but we are preparing for a regulated market. We’ve also recently partnered with bwin.party to bring the highest quality real money gaming experiences to our UK players in the first half of 2013.

Social gaming has been an active field in 2012 and from what we are seeing 2013 will likely see even more activity.The legal issues and regulatory enforcements will continue to increase.

While many companies are focusing on real money gambling, many other companies are focusing on various forms of gamblification – the use of gambling mechanics for non-real money gambling purposes.  The use of virtual goods and virtual currency in gamblification models, though prevalent, further complicates the legal issues. Our team has advised numerous companies on the legal issues with gamblification, including the use of virtual goods and virtual currency. If you would like more information on thees issues please contact us.

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Due to “legal and regulatory pressure” Dublin-based Intrade will no longer accept bets from US customers and all existing US customers must exit their trades and close their accounts. Intrade operates a real-money based prediction market. This announcement from Intrade came just hours after U.S. regulators filed a civil complaint against it.  

This action is another example of how gambling and gambling related activities are being subject to regulatory scrutiny. This trend is important for companies to note, particularly as a broader range of companies get involved in on line gambling. This is also important for companies involved in “gamblification.” Gamblification is the use of gambling mechanics for non-gambling purposes, i.e, leveraging the fun of gambling without real money at stake. Gamblification raises a whole host of legal issues, of which companies leveraging this phenomena must be aware.

The lawsuit was filed by the Commodity Futures Trading Commission, which accused Intrade and its parent company of violating its ban on off-exchange options trading, by enabling users to bet on predictions relating to commodities prices. But commodity trading is just one aspect of Intrade’s business. Intrade’s prediction market also enables users to bet on “predictions,” ranging from who will win presidential elections or Academy Awards or whether a dictator will be toppled by a certain date.

“It is against the law to solicit U.S. persons to buy and sell commodity options, even if they are called “prediction” contracts, unless they are listed for trading and traded on a CFTC-registered exchange or unless legally exempt,” Enforcement Director David Meister said in a statement. However, the CFTC has previously rejected exchange applications from companies that wanted to sell options on political outcomes, because they involve gaming and are contrary to the public interest.

A number of US-based companies operate prediction market platforms that enable users to make predictions on a range of activities, but sports-related predictions are among the most popular.  However, most of these platforms do not enable users to wager and/or win real-money. Some use virtual currency that users “wager” in connection with a prediction, but usually the virtual currency cannot be cashed out. The “win” that keeps users coming back is the bragging rights for those who are most accurate in their predictions.

While many of these models steer clear of the gambling laws, they must be done right to avoid crossing the line. Getting it right is especially tricky when virtual goods and/or currency are involved. Pillsbury’s social media team has prepared a client advisory on gamblification and the use of virtual goods/currency in these gamblification models. For a copy email us.

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Binary world  A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

 

 

Ubisoft Files Lawsuit against BEP Music over Music Game
Publisher Ubisoft has filed a $1 million lawsuit against BEP Music LLC in Superior Court claiming that it created an iOS versions of a popular Wii game, which its client refused to acknowledge as per a licensing agreement the two companies entered into in June of 2011.

Judge dismisses ex-Arizona State football player from Ed O’Bannon lawsuit vs. NCAA
A federal judge today dismissed former Arizona State football player Ishmael Thrower from the Ed O’Bannon lawsuit brought by ex-athletes against the NCAA, EA Sports and College Licensing Company over the commercial use of their images and likenesses.

Harrods targets teens with fashion push
Luxury department store Harrods is partnering with online community Stardoll as part of its strategy to target a younger audience of fashion fans.

Zynga Just Shut Down Boston Office, Laid Off 100+ Employees From The Ville And Bingo Teams In Austin
Possibly trying to hide the grim news by announcing it during Apple’s event, we’ve just independently confirmed that Zynga has shut down its Boston office and laid off 2/3s of the employees in its Austin office, including cuts to The Ville and Bingo teams. We’ve now confirmed the initial report from Justin Maxwell. We’ve also just heard Zynga may have an all-hands meeting this afternoon.

Boarding pass barcodes ‘can be read by smartphones’
A vulnerability in US domestic airline boarding pass barcodes could allow travellers to bring unauthorised items on board, says a security expert.

Utherverse nabs a patent on scalable virtual worlds that can host unlimited users
Utherverse is announcing today that it has won a patent to build a “scalable” virtual world, or one that can support an unlimited number of players in a single region of an online place. That could allow virtual worlds to achieve a critical mass for events like a convention or a concert.

Zynga Makes Its First Move Into ‘Real Money’ Games, Partners With Casino Gaming Giant Bwin.Party
I’ve a feeling we’re not in Farmville anymore. Zynga announced today its first concrete move into “real money” gaming, in other words, gambling-oriented games that let people both win and lose actual cash with each other.

 

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This week, a federal judge ruled that poker is more a game of skill than chance. The decision is a victory for poker advocates who are pushing to legalize internet poker in the U.S. The judge relied extensively on the findings of a defense expert who analyzed online poker games.

The ruling overturned the July conviction of a man charged with conspiring to operate an illegal underground poker club, a business featuring Texas Hold’em games. “Because the poker played on the defendant’s premises is not predominately a game of chance, it is not gambling” as defined in the federal law, the judge wrote in a lengthy decision that traced the history of poker and federal laws to combat illegal gambling.

To help our client understand some of these and other complex legal issues relating to gambling and social games, Pillsbury’s Social Media, Entertainment & Technology Team recently finalized a white paper on legal issues with Gamblification. To request a copy, please click here.

 

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Binary worldA weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

 

 

Amazon Enters Social Gaming Market
Amazon is entering the social gaming market just as two companies that pioneered the space, Facebook and Zynga, are struggling to figure out better ways to make money.

Gaming Industry Haunted by Safety Concerns
It’s never been a better time to be a game developer. It’s also never been more complicated. When building games, founders must keep young players safe – and stay within the law.

Zynga Builds Lobbying Presence on Gambling
Zynga Inc. has begun investigating in state and federal lobbying efforts around gambling with real money, even as the social gaming firm predicts the U.S. will not be an initial market for the potentially lucrative new line of business.

$1 Million Each Year for All, as Long as Tribe’s Luck Holds
The financial success of the 480 members of the Shakopee Tribe – whose ancestors 150 years ago were hunted down, slaughtered, and eventually exiled from Minnesota – derives from their flourishing casino and resort operation, which on weekends swells the population of their tiny reservation to the size of a city.

Online Gambling: What’s the rush?
Internet betting may be the future, but that doesn’t mean Maryland legislators should rush into legalizing it.

Bingo! Facebook Gambles On Games Using Real Money, Not Credits, To Engage Users
For the last three quarters, Facebook has been struggling to move the needle on its payments business, but today a new game has launched that could provide a clue to how that could change that in the future: the social network has, for the first time, allowed a gaming app on its platform that allows users to play with real money — not Facebook Credits. Called Bingo & Slots Friendzy, the app is an extension of the Jackpotjoy.com franchise from Gamesys, and will be available in the UK only, and only to users over the age of 18.

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Binary world  A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

 

 

 

Will States’ Fight Against Sports Betting Ban Pay Off?
Two states, New Jersey and California, are competing in a growing-stakes battle of states’ rights. The issue is the two-decade-old federal ban on sports betting. It has taken nearly 20 years, but finally there is some hope that things are about to change.

First real-money gambling app arrives on Facebook
Facebook has entered the world of online gambling after the first real-money bingo and slots app was launched on the site today. The Jackpotjoy Bingo and Slots Friendzy app has been created by developer Gamesys and is open to players in the UK over the age of 18.

NCAA To Hand Over Classified Docs In Player Antitrust Suit
A California federal judge on Monday ordered the National Collegiate Athletic Association to produce its media and licensing revenue reports in multidistrict litigation that alleged the organization and Electronic Arts Inc. violated antitrust laws by profiting from player likenesses.

The rise of the corporate app store
Businesses are taking to apps with their own stores.

Amazon Takes Aim at Zynga With Social Gaming Salvo
Amazon is joining Zynga in the social-gaming business, and just like the battered Internet game pioneer, it’s turning to Facebook to play host to its first entry.

Facebook Ventures into Online Gambling
Facebook is venturing into the world of online gambling with the launch of its first application where punters can stake real money.

NCAA, Pro Leagues Sue NJ Officials To Block Sports Betting
Professional and collegiate sports organizations including the National Football League and the NCAA sued New Jersey officials in federal court on Tuesday to block the state from allowing sports wagering at its casinos and racetracks.

 

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Following the DOJ decision reversing its position on the scope of the Wire Act, some states have moved forward with legislation to permit certain forms of intrastate gambling. New Jersey, along with Nevada, have been among the first movers. A recent lawsuit challenges a NJ law that permits wagering at casinos and racetracks on the results of certain collegiate and professional sports or athletic events (the “Sports Gambling Law“).

The complaint was filed on behalf of the NCAA, NBA, NFL, NHL and MLB, alleging that the Sports Gambling Law is illegal under the Professional and Amateur Sports Protection Act, which prohibits certain sports betting, subject to certain exceptions which the Plaintiff alleges do not apply.

This lawsuit is not surprising. Governor Christie anticipated it and acknowledge its likelihood on a May 24, 2012 news conference. We will follow the case and post updates as events unfold.

 

 

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A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

 

App Makers’ Privacy Policies Leave Users In The Dark: Panel

Several software developers and privacy advocates at a Federal Trade Commission workshop Wednesday shot down the notion that traditional privacy policies are enough to adequately inform mobile application users of how their information is being collected, stored and used.

Social Media Policies At GM, Target, DISH Network Deemed Unlawful By Labor Official

In an effort to control employees’ activities on Facebook and Twitter, some U.S. companies have instituted social media policies that run afoul of labor law and infringe on workers’ rights, according to a memo issued Wednesday by the general counsel of the National Labor Relations Board.

Social Gaming and Gambling Converging

Maybe the most social of popular casual games is breeding a new competitor in the social gaming space as bwin.party sets its sights on this growing part of the market. The company is more known for poker, a game played with friends around dining room tables around the world, but it has set aside $50 million to develop a new game studio called Win that will develop social games.

The video games you play with your mind

The gaming controller of the future won’t have joysticks or buttons; it’ll wrap around your head. A number of companies like San Jose-based NeuroSky are developing affordable, consumer-ready controllers that takes cues from the electrical signals in a wearer’s brain to dictate onscreen action. Here, a concise guide to the new smart technology.

Social media: Bill would limit employers’ and schools’ access to your Facebook, Twitter account information

The House Energy and Technology Committee on Tuesday took testimony on legislation that would create the Social Network Account Privacy Act. The bill as introduced generally would prohibit employers and schools from requesting that employees and students provide access information related to their social media accounts.

Google Augmented Reality Glasses To Go On Sale Next Year

According to specialists, after the Google Project Glass will hit the market, the manufacturers will start building a wide range of gadgets based on the new technology, from smartphones to tablets featuring transparent displays.