At this moment, the online market is facing two highly controversial issues, regarding monetary transactions pertaining to online gaming. The concepts in discussion are: video games microtransactions and casino game gambling. They both share common denominators, but also differ in fundamental aspects, as we’re about to see.
Video games microtransactions
The in-game purchases of special features, characters, special abilities, content, or rewards, by trading real money, is an activity which has become known as a video game microtransaction. These operations have grown as value and frequency during the latter years, in such an accelerated manner, that they’ve drawn serious attention upon them. The fact that similar to any casino online real money were involved, most of the times the outcome of such a prize being unknown to the buyer, had the gambling authorities take a long, hard look at these transactions.
The debate also included video games enthusiasts, claiming they’ve been wronged, being forced to pay additional fees in order to enjoy a game already purchased, while the video game developers state that they’re not breaking any laws, by doing so.
Causes for microtransactions’ development
The gaming companies are on the right side of the law, seeing how these microtransactions do not come in conflict with actually completing the video game, as this would be illegal, since the user already paid a retail price for achieving the game. However, they refer to the popular features, or characters, which can’t be unlocked or enjoyed, without paying the extra bucks. We can easily identify at least an ethical dilemma, as it looks like a sort of exploitation of people’s main interests.
We can trace part of the problem to the advancement of technology, smartphone software for instance. The fact that anyone can develop apps for smartphones really cheap, meant that buying the original online game wasn’t the main source of income any longer. As a result, in-game purchases, or microtransactions as they are currently known as, became important additional payouts opportunity. The original app store contained entirely free games, or premium versions. By paying the latter ones, a user unraveled the full extent of the game. Given the fall of purchasing prices, a new category made its way into the online stores, namely freemium apps and games. The appearance of these games installed for free, but filled with in-game purchases, marked the start of the incredible development of microtransactions.
Types of microtransactions
There are several categories that microtransactions have been placed in, the most prominent of them being:
- A virtual currency, having value only during gameplay, which players receive in-game, but have the possibility to buy more substantial amounts of this currency, using real money.
- Loot crates is the concept which most resembles the online casino gambling. It’s designed as a purchase which gives random chances at getting a prize of undetermined value. These loot crates can be won during the game, but can also be bought.
- Items relevant during gameplay refer to clearly specified items which can be bought directly at a store inserted in the game’s menu.
Casino games
Gambling at a casino is not a new notion and it has always been a domain fueled by controversy. This state of affairs only amplified when the technological development permitted the gambling industry to go online. There was a lot of talk about security, regulations, protection of financial transfers and some regions still take a conservative stance on this subject. The notion of mobile Bitcoin casino incorporates an unregulated virtual currency, with a risk-filled activity, mixed with the instant access offered by mobile devices. The risks associated with this sort of iGaming money transaction seem to be pretty high, perhaps much more than the sort of microtransaction holds.
However, the main difference is that here, users are fully aware of the cost to be paid when accessing an online money game. Trading real money is at the core of this activity, as money is paid in order to place a bet and real money games are also expected to award pecuniar prizes to the winners. Thus, money going back and forth is a mandatory condition when deciding to play online casino games.
Similarities and differences
One of the first likenesses which comes to mind is that in both cases the purchases are virtual, while the deposit money used for the acquisitions are real. Also, gamblers haven’t got the certainty of what the money wagered in online casinos are going to return. The same can be said for in-game purchases, as is the situation with loot crates.
However, risking money in the hope of receiving a great fortune is literally the main activity online casinos conduct, thus players know what to expect at before registering to play the available betting pastimes. Players buying a video game do not sign up for these additional transactions required in order to enjoy the game at full extent.
For instance, the UK Gambling Commission, a relevant and world-wide renowned organization, analyzed microtransactions in order to decide whether they should fall under the gambling laws. The conclusion was that they can’t be classified as gambling activities under current laws. However, they also mentioned that there is a thin line between the two concepts, urging caution for the producers inserting the microtransactions in video games, as well as for customers purchasing the in-game items.
Conclusion
Although we can all agree that video game monetization and iGaming money transactions have a lot in common, the debate and controversy surrounding them being one of the most visible joint traits, there are also some fine lines setting them apart.