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View Full Version : Thoughts on Cash tourneys ... things to consider.



Jarric
05-22-2013, 03:18 PM
So I took a quick glance at some of the online laws that I could find and came to a couple thoughts and wanted to see if they stuck.

First there is apparently a difference between "gambling" and "gaming" online and each state has different laws that pertain to those words. The general difference being "luck" vs "skill". As long as Hex can prove that to win the tournament and thus award cash the winner had to achieve this through Skill not luck. I don't think this will be an issue at all. I believe the other issue is whether or not a "rake" is taken by the house(or CZE in this case). As long as none of the money from the player base is being taken off the top I believe this also skirts some of the laws that would block. In this case you could do the old chewing gum trick. Tourney costs $5 plus one pack. the $5 from every player goes into a pool and is payed out at the end with none of the $5 going toward CZE. But since you have to buy a pack ($2) to enter they still make money from each participant.

i.e. - 10 players $50 pool First place is $35 second is $10 third is $5 ... CZE makes $20 on the packs purchased.

Again just throwing out possible solutions to try to get that aspect on the sights. Basically the goal of CZE in this case would be to get the players in with the offering of RMTourneys. Those that want to compete WILL be buying packs so they make money on that even if they can't per say on the actual tourneys themselves. Use the RMTourneys as a loss leader so to speak to bring the player base in. They just have to undertake the burdon of hosting/transferring funds etc.

Thoughts?

~Jarric

Tyrfang
05-22-2013, 03:27 PM
As an international game, the company would have to follow the gambling rules of many different countries.
What country is this regarding?

Jarric
05-22-2013, 03:31 PM
What I looked up was specifically for USA. As that is where I live. Also with all the "poker" sites getting that government freeze put on them it felt like US was the biggest "where's our slice" whiners so they cracked down the hardest (that could just be my take though).

Lochar
05-22-2013, 03:32 PM
Yeah, here in the US they've just barely gotten poker back on the online world.

Tyrfang
05-22-2013, 03:43 PM
Well, that was mostly because the internet companies would incorporate in some country in the Bahamas, and avoid playing the US any taxes. Cryptozoic would be incorporated in the US and pay taxes on it's earnings (or, if it's not a taxable corp, the distributions of profits to shareholders).

Lochar
05-22-2013, 03:45 PM
No, it's still illegal on a federal level. To play Poker online in the US, you have to be in the state you're playing in so that it doesn't cross that nasty interstate commerce clause and send the moral police after you.

Jarric
05-22-2013, 03:54 PM
Well lets get off poker :-P ... what do you think about the possible ways around it?

Tyrfang
05-22-2013, 03:55 PM
Well, how the heck do other TCG do tournaments?

Jarric
05-22-2013, 04:08 PM
I can't think of an online version that has RMtourneys .... in person the RM isn't an issue as there are tax forms that can be filled out right there etc. It's the online factor that makes it a fine line.

Lochar
05-22-2013, 04:12 PM
Well, how the heck do other TCG do tournaments?

As Jarric said. And IRL games usually have small prizes or non-monetary prizes that you can walk away with because they value under a certain amount.

Ebynfel
05-22-2013, 04:34 PM
i'm sure they are working on it. THey've likely had a legal team messing with it for some time now realizing the issues. Also, remember this is a TCG company that has run tourneys big and small before. I'll let them figure it out and tell me if it's a go.3

Tinuvas
05-22-2013, 04:38 PM
They could just physically gather everyone into one place when they do it (World Championship anyone?). I know there are TONS of complications for that, but *shrug*, it's an option. Regardless, I'm with Ebynfel. When they figure it out, they'll tell me.

djlowballer
05-22-2013, 05:20 PM
They can give some random digital trophy codes to winners and then have a site run by a separate BU incorporated in a less restrictive jurisdiction operate a redemption centre trading those items for cash. Or BTC prizes?

jtatta
05-22-2013, 06:21 PM
It's illegal to actually have real money events online. For an event like Worlds, when it comes up, it will have to be at a physical location for them to give away actual cash prizes.

EDIT: Before I get flamed, a lawyer friend of mine explained this to me. I don't actually know the laws 100% so don't expect any kind of follow up to this. Sorry in advance if I'm wrong or if I spoke too soon.

Lochar
05-22-2013, 06:26 PM
It's illegal to actually have real money events online. For an event like Worlds, when it comes up, it will have to be at a physical location for them to give away actual cash prizes.

EDIT: Before I get flamed, a lawyer friend of mine explained this to me. I don't actually know the laws 100% so don't expect any kind of follow up to this. Sorry in advance if I'm wrong or if I spoke too soon.

As with househunting, location location location. It all depends on your local laws, see the discussion we had on the previous page.

Deathfog
05-22-2013, 06:56 PM
Winning prizes is one thing, at worst think of it as a raffle. Directly cashing out cards/accounts is a different story.