Random Musings on Fraud

According to the website of a gaming fraud Lawyer in NY:
manipulation of gaming outcomes is unlawful. Anyone involved in a scam to fix the outcome of games of chance could find themselves facing criminal charges.

US case law defines gambling as requiring the following to be classified as gambling: 1.Payment of some form of consideration
2. A result determined by chance and not skill
3. A prize
If it passes these tests then it is considered gambling

Straight from a Science Direct Journal: Games as a service refer to a broad class of online games which provides in-game content on a continuing revenue model ([Lehdonvirta, 2009]. Examples of such games include the extremely popular online ‘battle royale’ genre (e.g., Fortnite ), online subscription-based games such as massively multiplayer online (MMO) games (e.g., World of Warcraft) , and free-to-play game apps on smartphones and tablets (e.g., Clash of Clans ). Games as a service are designed to encourage users to make ‘in-game purchases’ or ‘microtransactions’, which involves spending money, usually in small amounts (e.g., between $1 and $5), to access (or have the possibility of accessing) virtual items or currency within the game.

US Code 52 about Dissemination of False Advertisements states:
(a)UnlawfulnessIt shall be unlawful for any person, partnership, or corporation to disseminate, or cause to be disseminated, any false advertisement—
By United States mails, or in or having an effect upon commerce, by any means, for the purpose of inducing, or which is likely to induce, directly or indirectly the purchase of[ food, drugs, devices, services, or cosmetics; or
By any means, for the purpose of inducing, or which is likely to induce, directly or indirectly, the purchase in or having an effect upon commerce, of food, drugs, devices, services, or cosmetics.
(b)Unfair or deceptive act or practice
The dissemination or the causing to be disseminated of any [false advertisement]within the provisions of subsection (a) of this section shall be an unfair or deceptive act or practice in or affecting commerce within the meaning of [section 45 of this title]

US Code 54 about false advertisements states the following:
or under such conditions as are customary or usual, or if such violation is with intent to defraud or mislead, be guilty of a misdemeanor, and upon conviction shall be punished by a fine of not more than $5,000 or by imprisonment for not more than six months, or by both such fine and imprisonment

Here is a link to reporting Fraud in the USA:

Of note are the sections of - ‘Common Scams and Fraud’ and ‘Internet Fraud’

Just a random bunch of thoughts as I was browsing the internet… If only they all connected in some way… :thinking:


This was just a few quick internet searches. I’m sure anyone schooled in or experienced with law could do significantly better.

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Youre an amazing bucket @CLIFTON87 you really go out of your way to help, may you be blessed by the bucket gods


The colonel Sanders will be proud of u

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Currently no, this type of gaming is not considered gambling and likely never will. If suddenly overnight lootboxes and other micotransactions were included as gambling then millions of people in the US could deduct a percentage of those gambling losses from their taxes. That’s not gonna happen, regulation is the best that you can hope for.

Also, technically Scopely is right about this not being gambling as it’s proven to be rigged. Fraud is not gambling.

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Anything with odds is gambling… numbers are randomly generated just like pokies…

To be fair, you could just take out the 1st 2 points, start from the Science Direct Journal point,therefore bypassing the gambling part, and it could still work as showing them to have committed Fraud in US law. Looking back on it, I’m not sure why I even needed to include the 1st 2 points about gambling.

Awww Cheers How2 and BlindHybrid!

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