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Hello,
I try to make a very basic summary of what are the definitions and categories of online gaming that involve playing for money and on the web, I talked with lawyers mostly in IGE, CAP, CAC and other events and learned some things, I write it here.
I’d appreciate it if somebody can put more information here or correct things that I wrote here which are not accurate in order to complete the picture:Categories of online games for real money on the web:
1. game of luck when a person plays against the operator (meaning that either the operator wins or the player wins), example: online casino
2. game of luck when two people are playing against each other (meaning that each of them can win, and the operator gets commission for the game), example: online poker
3. sports betting
4. skill games
5. Foreign Exchange (FX) tradingquestion is if these are the right categories?
Are there more categories that I did not mention?
What is the definition of the last two (number 3 and 4)also a useful link about regulation in different territories is in Wikipedia here:
Online gambling – Wikipedia, the free encyclopediaThanks :hattip:
I guess most of what we do, can fall into one of those buckets. Probably within each, there are many classifications, but probably too many to list here. I assume that # 3 is a typo and should be “sports betting”, or do I have that wrong ?
OK, thanks. Just wanted to make sure that you weren’t referring to Foreign Exchange (FX), and “spots” trading.
Some people consider FX a new form of gaming, but as a former day-trader and current investor, I personally have a problem lumping this in as a gaming category. HOWEVER, for those who live in a jurisdiction which prohibits online gaming, FX (or any other investment market – stocks, bonds, options, commodities, etc.) can all be “traded” legally. Given the randomness of markets’ direction, particularly in the short-term, an online trader can certainly consider any of the aforementioned markets as one of chance, and thus, a form of gaming or entertainment, especially since money is involved. So, to add this to the list, is certainly interesting, to say the least.
yep, forex (eToro) seem to me a bit different than the other gaming products, because it’s not really based on random numbers, currency-rate changes are not like throwing a dice (although they are both impossible to predict for the short run)
I like the eToro product, it’s a nice idea, I tried to affiliate it but it failed (and the blame is on me since I did it in a wrong way)if you call forex gambling, then you need to include stock trading as gambling which is going too far IMO
Forex is not a “gambling product” and frankly the e-Toro attempts to promote along the same lines are a bit of a joke, quite strange, and probably illegal in most financially regulated countries where the promotion of these products is quite sturctured. Foreign exchange is a financial instrument and a trading tool.
Your gambling segments are somewhat lopsided as well – and do not really conform to the sort of breakdowns that would normally occur if trying to categorise online gambling
If I was going to attempt to categorise them then I’d try a split along the lines of :
1) Poker (Texas Holdem, Omaha, Razz, stud and all the variants)
2) Traditional Table Games (Blackjack, roulette, baccarat, craps)
3) Slot Machines, Video poker, One Arm Bandits (anything you push a button to “spin”)
4) Bingo
5) Lotteries, Keno, Scratch cards
6) Strategy games like Backgammon, Mahjong and Chess (when played for money)
7) Sports betting
Horse Racing (large enough on it’s own – and has specific US exclusions)I think that this gives EIGHT distinct categories that could be considered seperate areas.
:hattip:1) Poker (Texas Holdem, Omaha, Razz, stud and all the variants)
2) Traditional Table Games (Blackjack, roulette, baccarat, craps)
3) Slot Machines, Video poker, One Arm Bandits (anything you push a button to “spin”)
4) Bingo
5) Lotteries, Keno, Scratch cards
6) Strategy games like Backgammon, Mahjong and Chess (when played for money)
7) Sports betting
Horse Racing (large enough on it’s own – and has specific US exclusions)
the categories that I wrote above I heard from a law firm, it’s categories that relate to regulation and tax and so on…
thanks for your post :hattip:
I’ll think how to combine the two ways to categorise online gambling …@holdemradar 215002 wrote:
if you call forex gambling, then you need to include stock trading as gambling which is going too far IMO
Yes, I agree. And if we add stocks to this list, then why not also add bonds, commodities, options, etc. I think, and please correct me if I’m wrong, but “laurerb” was probably including FX (foreign exchange) as part of this list, because eToro specifically, has created an affiliate program that provides for either CPA or REV SHARE affiliate earnings, for recruited traders. Although there are one or two other FX vendors that do the same, the concept is still somewhat novel in the FX space.
I don’t know of any non-FX brokerages that do the same in the financial arena.
@TheGooner 215004 wrote:
Forex is not a “gambling product” and frankly the e-Toro attempts to promote along the same lines are a bit of a joke, quite strange, and probably illegal in most financially regulated countries where the promotion of these products is quite sturctured. Foreign exchange is a financial instrument and a trading tool.
I think FX is much more loosely regulated than traditional domestic-based markets, since it spans the world, and that is probably how eToro (and several others) get away with this. When eToro’s program first came out, I did some very preliminary research, and didn’t see anything that jumped out at me, as being totally illegal. REV SHARE for FX does seem a tad shady, IMO. However, there are several domestic brokerages (e.g., eTrade) that have affiliate programs – eTrade is a prominent US-based brokerage house that has a CPA program through Commission Junction.
Compare the way that Etrade advertises and the use of language that it allows to that of e-Toro. It’s chalk and cheese – two very different approaches.
Etrade is careful to deal in facts, figures, spell out the costs and fees and emphasise that stocks may go up and down.
E-Toro’s affiliate sites (not E-toro’s site itself) contain so many advertising breaches so many of financial advertising rules and regulations that you cannot take it seriously as a financial instrument. It really is almost marketed as an alternative to poker and is extremely irresponsible – with minimal control exerted by E-toro over it’s affiliates … the hyperbole is almost encouraged.
:Cry:Whether by design or by accident e-Toro is heading for trouble in the US, UK, Australia and europe – whereever you have financial regulations that insist on factual advertising.
Forex is not a “gambling product” and frankly the e-Toro attempts to promote along the same lines are a bit of a joke, quite strange, and probably illegal in most financially regulated countries where the promotion of these products is quite sturctured. Foreign exchange is a financial instrument and a trading tool.
I also didn’t find eToro related to online gaming since it’s actually a currency exchange tool + game visualization
but I see that it has affiliation program here, and also they are not accepting US players like some other programs… so it became part of the industry…
in general I think that it’s good to have it as a category but it definitely has much smaller market segment comparing to other categories…@lauferb 215095 wrote:
and also they are not accepting US players like some other programs…
I don’t see anything that prevents US-based individuals from joining eToro and “playing”….
