Regulating the future? : the legal implications of social games

Abstract

With the estimation today being that there are over 750 million persons worldwide playing Social Games, the genre constitutes a booming portion of the digital economy. The Social Games industry is projected to reach a global market value of $17.4 billion by 2019. However, despite the genre’s grandiosity, there is little consensus as to its regulatory future. Unlike remote gambling, Social Games currently lack any form of sector-specific regulation. This has caused considerable debate, particularly vis-­à-­vis Social Casino Games: that is, a subset of Social Games that is overtly similar to gambling. Resultantly, regulators worldwide have begun to explore whether Social Games should carry on as a specifically, ‘unregulated’ space. Embarking upon this premise, the author shall seek to understand the need for regulation. This will entail a broad study of various issues surrounding the genre, inclusive of: (i) its legal status; (ii) the relationship between Social Gaming and gambling; and (iii) the main consumer-­‐related concerns emerging therefrom. Ultimately, it is deduced that, while driven chiefly by player protection motives, specific regulation – particularly in relation to Social Casino Games – could present a suitable way forward. This study endeavours to propose how Malta may attempt to regulate Social Games: via the creation of a non-­‐draconian licensing regime, essentially retaining the genre’s entertaining experience; now commendably delivered, however, by operators carrying a seal of trust from one of Europe’s most esteemed regulators. Notably, this thesis includes material as available, and illustrates events as occurring, up to 22 May 2015.