Skin Gambling – a Maltese perspective Malta ’ s Remote Gaming Regulations , ( the ‘ Regulations ’), define ‘ gaming ’ as an “ agreement , scheme , or arrangement between two or more parties to play together at a game of chance in which a prize or reward consisting of money or some other item of value , worth , advantage , or opportunity is offered or can be won and become the property of the winner under defined conditions established for the purpose of the game ”. 5
The Lotteries and other Games Act , ( the “ Act ”), defines ‘ game ’ as being a game of chance and / or a game of chance and skill . 6 A ‘ game of chance ’ is defined by the Act as “ a game for money and , or prizes with a monetary value , the results of which are totally accidental ”. 7 A ‘ game of chance and skill ’ is defined as “ a game for money and , or prizes with a monetary value , the results of which are not totally accidental but depend , to a certain extent , on the skill of the participant ”. 8 Both the Act and the Regulations prescribe that a licence is required in respect of these two scenarios .
In view of the fact that skins such as those used in CS : GO can be traded or converted into cash by means of virtual marketplaces and platforms , there exists a strong argument in favour of them attaining the status of an ‘ item of value or worth ’ for the purposes of the Regulations . Furthermore , in light of the fact that some , if not all , of these skins may be converted into cash ,
5 Regulation 2 , ‘ Remote Gaming Regulations ’, SL 438.04 of the Laws of Malta . 6 Article 2 , ‘ Lotteries and other Games Act ’, Chapter 438 of the Laws of Malta . 7 ibid . 8 ibid . 9 ( no . 2 ). 10 ibid . one may also argue that these skins attain a monetary value . Consequently , it follows that websites offering skin gambling should require a license to operate as such .
Cases such as that of FUTgalaxy , which is mentioned above , demonstrate that in-game items are particularly attractive to minors who are especially drawn to video games such as CS : GO , FIFA and other similar games . The UKGC commented in respect of FUTgalaxy that “ the defendants knew that the site was used by children and that their conduct was illegal ” 9 and how the defendants “ turned a blind eye in order to achieve substantial profits ”. 10 The court , in this case , described the effect of gambling on children as ‘ horrific ’ and ‘ serious ’ leading the UKGC to conclude that licensing websites offering skin gambling such as FUTgalaxy was the only way to protect minors and other vulnerable persons .
As has been demonstrated in this article , several jurisdictions are taking official positions and issuing decisions in respect of skin gambling . The Malta Gaming Authority has not taken a position yet . There is therefore a strong case to be made for the Malta Gaming Authority to give due attention to the topic of skin gambling , particularly after taking into consideration the effects it has on minors and other groups of vulnerable persons . Awareness should be raised and controls put in place to protect minors and vulnerable persons from the risks brought about by skin gambling .
The Malta Gaming Authority should take the opportunity to place Malta , as a gambling jurisdiction and as one of the leading industry innovators of the past fifteen years , back to the forefront of consumer protection and regulation , whilst clarifying the boundaries within which skin gambling providers are to operate .
Alistair Facciol is an Associate at Fenech & Fenech Advocates and has been practicing in the gaming and betting industry since 2011 . He holds a Doctor of Laws degree from the University of Malta and is currently reading for a Master in Laws ( Computer and Communications Law ) degree from the Queen Mary University of London . Alistair is also �����i�nc�d in di����nt a��as of Intellectual Property and ICT law , especially within the gaming sector and takes keen interest in new and upcoming trends and technologies . He can be reached by email : Alistair . facciol @ fenlex . com
�� | European Gaming Lawyer | Spring Issue | 2017