Games, Gaming and Gambling

By Larry Magid

Sometimes words can be confusing. For example, "games," "gaming" and "gambling" have different meanings, depending on the context or whom you ask.

In the world of PCs and game consoles, "gaming" refers to all types of games - whether on PCs, Game Boy, Xbox, or the Internet - most of which have nothing to do with wagering. But if you do an online search for "gaming" you'll find all sorts of gambling-related sites, because that's the euphemism that the gambling industry uses to describe its offerings.

Of course there are people in the "gaming" (i.e. gambling) world who would argue that some games involving wagering are not strictly gambling because they involve skill as well as luck. While it’s true that some forms of poker and other "games" do favor the skilled over the unskilled, they are still considered gambling and — at least in the U.S. — are typically regulated by state, local, federal or tribal authorities.

Sometimes there are subtleties. For example, there are games of chance and skill that can result in prizes or awards that are not necessarily financial. And there are cases where you pay to play for the chance to win a prize. Is that gambling? I suspect that parents who take their kids to a fair or carnival and buy a ticket to play a game and, hopefully, win a prize wouldn’t consider this gambling, but the case could be made. And, of course, there are all of those quasi-sanctioned games such as church bingo or raffle tickets sold to aid charities that look a lot like gambling but are rarely frowned upon by law enforcement officials.

With the exception of gambling sites, mostly run from outside the U.S. (because online gambling is illegal in the US) most games you play on a PC or a game console do not involve wagering, but that doesn’t mean they’re free. Many online games charge a fee, whether by the month year or session, and there are often items or "artifacts" such as virtual weapons or real estate that users can buy (for real money) that can help them in the game. What’s more, if the game has a chat channel, there is always the possibility of a side-bet.

Confused? Well, the world, like our TV sets, isn’t quite as black and white as it was many years ago, but the bottom line – once again – is that parents have to be aware of what their kids are doing. Don’t be alarmed – your kids probably aren’t betting their college tuition every time they turn on the PC or the game console, but you should still tune in and remain aware of what they are doing with any gaming device.