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Abstract: The Internet has completely changed the landscape of the planet. As a result, many areas of the law are being re-thought or re-developed, while other new issues emerge that defy all remotely related regulations. Online gambling is one of those areas in which the laws have lagged behind the technology, and are still in need of an overdue update, along with an official chosen course of action toward bans or regulation. However, as with many other fields, there are developments at our doorstep that stand to turn the concept of internet gambling on its head and re-define the scope of all currently proposed regulations. This paper's central thesis is that current gambling regulations do not adequately account for the issue of gambling within Massive Multiplayer Online (MMO) games. Rather, these gambling transactions fall into shades of gray between what is and what is not legal. The paper proceeds in three parts. First is an overview of gambling regulation. Second, an explanation of the MMO games themselves. From these two elements, the third portion of the paper poses a potential regulatory scheme which could be applied to MMO games to address the issue of MMO gambling more thoroughly than it is presently addressed by any regulation.
MMORPG, MMO, gaming, gambling, video game, internet, regulation, tax, World of Warcraft, Second Life, Lineage, Everquest, Ultima Online, American culture, cyberproperty, cyberlaw, property, law and economics, online gambling, online gaming, virtual economy
Abstract: The hastily drafted Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) took many steps toward doing away with internet gambling altogether. However, many ambiguities remained in the text of the Act. One major ambiguity that has yet to be addressed is how the Massive Multiplayer Online Role Playing Game, or MMORPG, fits into the Act, as the dynamics of these games blur the lines drawn between unlawful internet gambling and simple online gaming. This paper attempts to explain the most likely trouble areas MMORPGs will encounter based on the Act, and briefly discusses the regulatory alternatives. The analysis follows the models of two popular MMO games, World of Warcraft and Second Life, and analyzes them under the new regulation. After this analysis, an alternative regulatory structure is proposed which would more adequately address these MMO games in particular.
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