Q2 Random prizes in game and gambling & lottery license

[Geralt]

Hi,

I checked swedish gambling authority website and read section about winning items with real value in game. They give an example:

Fictional example
Eva has a user account on a computer game platform called Gaming. She can play various computer games on the platform. On the Gaming platform it is possible to buy virtual Gaming coins with real cash. Eva can use the virtual coins to buy virtual objects that have varying value in the computer game. In one of these computer games, Eva takes part in an activity that is determined by chance. Eva wins a virtual object. She sells this virtual object to another user on the Gaming platform in exchange for virtual Gaming coins. She then cashes in the Gaming coins for real money that the Gaming platform transfers into her bank account.

In the above example, Eva has taken part on the Gaming platform in a lottery according to the Swedish Lotteries Act for the following reasons. Firstly, she has won something through chance. Secondly, her prize has financial value in the real world because she sold the prize and this resulted in real money being transferred into her bank account.

The next step is to decide if the Gaming platform has arranged a lottery in Sweden. This would be the case if the operator of the Gaming platform (a limited company, for example) had its main business in Sweden. If it is considered that the operator of the Gaming platform has conducted a lottery in Sweden, then the event is considered to be covered by the Swedish Lotteries Act and thus it would be forbidden to arrange such an event without a licence.

It sounds 100% like Entropia. Are you guys sure that your "game" is 100% ok with current legal requirements after new legislation about gambling is in power since 01.01.2019? Did you hire some lawyers to check that legislation for you?

Does Entropia Universe comply with all legal requirements of new swedish gambling act that is in power since 01.01.2019? Did you check that and are 100% sure you don't need lottery/gamblng license or any change in the code of the game? When was the last time swedish gambling authority did an audit on Entropia? Did they do the audit after 01.01.2019?

Thanks.

 

[Henrik|MindArk]

MindArk, along with its legal advisors, is careful to ensure that it is in compliance with all applicable laws and regulations at all times