Social casino is not gambling, rules Washington court
Federal court rules virtual currency has no âvalueâ thus social casino games are not gambling under state lawÂ
A federal court in Washington has dismissed a class action lawsuit that claimed social casino games that use virtual chips meet the definition of gambling under state law. [private]
In its ruling the court found that virtual chips have no real-life value and therefore games that offer the purchase of coins do not constitute gambling because players were not âstaking or risking something of valueâ.
According to reports in The National Law Review, the court disagreed with the plaintiffsâ claims that virtual chips have value because they âextend gameplayâ and can be sold on a secondary market.
In its ruling, the court said the games were free to play, and there is never the possibility of receiving real cash or merchandise.
The ruling is in line with the opinion of the Washington State Gaming Commission, which states social gaming is not gambling because players canât win a cash reward.
âIf a player spends ârealâ money for a virtual prize, avatar or tool to assist with game play and these items cannot be sold or redeemed for ârealâ money or a prize, itâs not gambling,â the Commission said.