Fueled by digital disruption, online gambling services challenges local market barriers and regulatory bodies of the gaming industry. While some countries have not enacted any specific rule to face those challenges, other countries have already done so, addressing main issues raised on the matter of online gambling. 

As from 2017, Uruguayan law specifically forbids gambling through Internet, platforms, apps or similar (with few authorized exceptions). Under said restriction, the regulatory body is entitled to shut down platforms or websites whenever illegal online gambling is offered, promoted, or advertised. Enforcement measures may result in substantial fines in the head of any party involved in such illegal activity.

Online gambling regulations in Uruguay may raise inquiries on whether the restriction apply to other in-game features based on luck factor. Namely, if any prize randomly awarded in a game can qualify as online gambling under the abovesaid regulatory framework. As a matter of fact, most of in-game features are quite alike real casino’s slots, fortune wheels, roulettes, and craps. There are even online simulated gambling platforms in which users purchase virtual coins to have the same gaming experience offered in real online gambling websites. Loot boxes, on the other hand, is another good example of how games relay on luck factor to award prizes for users as a monetization mechanism.

In-game offering prizes based on luck may be eventually confused with online gambling, especially when there are no clear guidelines to follow. So, where is the line on online gambling vs in-game features based on luck?

Although the answer to this question depends on each legislation, if no clear rules were to be on place, the line could be drawn on whether the prize awarded by luck factor is turned to real money or goods with some sort of value, outside of the game. If prizes cannot be cashed out from the game; if virtual coins earned or items redeemed through an in-game feature do not have any other purpose than enhancing the gaming experience for the user; then, an online gambling qualification should be unlikely in those cases.

Gambling is generally defined as the act of betting money on the result of a game or the prediction of an uncertain outcome. When users purchase the chance of winning an item without real value, money is not being risked at all. Users do not buy those virtual items (i.e., coins to play a roulette game) to earn a profit, but for entrainment purpose only. Hence, the fact that an online user purchases the chance to win a prize randomly selected should not be enough to consider that in-game feature as online gambling. This should be true, provided there is no money nor valuable and tradable goods involved, to ensure users do not earn any profit out from them.

In a nutshell, purchases on in-game based on luck should not qualify as online gambling whenever there is not a prize of real value to be awarded and the user cannot make a real profit from it. It should be noted, however, that even when it has not been addressed from a regulatory standpoint, there are other legal implications to bear in mind, mainly, under consumer protection rules.