One of the biggest questions haunting the global online gaming industry is whether it is based on skill or chance. The question has become even more critical as the industry is growing rapidly, thereby attracting private equity. If it is based on chance, that makes it gambling; hence it becomes illegal in jurisdictions where gambling is illegal. So, as you enjoy your favorite game on JackpotCity Online Casino, do you use skill or depend on chance to win? Additionally, differentiating between casual gaming and real-money gaming is also proving to be another challenge troubling the gaming industry.
Industry experts argue that these disputable questions are keeping the gaming industry’s balance hanging even though it is growing at a tremendous speed. Studies have revealed that the industry’s growth was particularly boosted by the lockdowns that confined people in their homes. Consequently, many people chose gaming as a way of keeping themselves busy.
However, the gaming industry has also had its fair share of challenges. For example, concerns about gaming have led to certain jurisdictions banning all forms of gaming. In these regions, the authorities see gaming as an activity based on chance hence making it gambling.
On the other hand, the gaming companies argue that authorities usually make random definitions and interpretations that are not guided by any clear policy framework.
Lack of Universal Guidelines?
The gaming industry also suffers from a lack of universal law that makes the distinctions clear. As a result, the interpretation is left to state authorities.
In other countries, they rely on court judgments to differentiate between gaming and gambling. However, the matter remains unresolved, meaning any decisions made on the issue are not based on any policies.
Gaming companies are hoping that the matter is resolved sooner rather than later. The operators advise that governments should come up with progressive online skill gaming policies because there is still regulatory ambiguity in the gaming industry. They also believe that having such policies will act as a proof of concept for other jurisdictions.
So what is the difference between skill-based and chance-based games?
Well, according to universally accepted definitions, gaming requires skills, while gambling relies mainly on chance. Moreover, you don’t need money to enjoy games with friends.
However, you can also decide to play for money while playing. In this case, it becomes gambling because there is a financial transaction involved. It refers to a scenario where the winner will get some monetary gains. So, what differentiates gaming and gambling?
Gaming requires you to use skill and knowledge to play. The gameplay also involves players coming up with solutions to challenges provided by the game’s developers. On the other hand, gambling is predominantly dependent on probability and luck. For instance, participants have to wager money on a game of chances or place bets on sports events.
The Difference Lies In Financial Gain?
Many experts and other stakeholders argue that the difference is in financial gain. Nevertheless, whether you are playing for fun or cash, you will still need to practice to increase your chances of winning. What are your thoughts? Does gaming rely solely on skill only, or is there an element of probability?