Play-to-earn game developers that sell in-game currency tokens or NFTs to their players may be inadvertently selling unregistered securities. Offering unregistered securities is illegal and the Securities and Exchange Commission (“SEC”) may prosecute developers and obtain injunctions, civil penalties, and orders to refund all investor funds (disgorgement). Further, the investors themselves can sue developers (including…
Tag: legal gaming
Are Skill-Based or Pure-Skill Real Money Games Legal in the United States?
Skill-based, pure-skill, or simply real-money skill games are a hot new trend in the online gaming market. Games offered on mobile platforms like the iPhone and devices running the Android operating system are especially popular. Smartphones are everywhere, and in the United States alone an estimated 222 million people have smartphones, with 45 percent of…