Virgin Group is getting into the Internet video game tournament business, which is legal in all but 11 states because the video games are considered games of skill, not chance. The new Virgin Gaming Web site gives console video game players the chance to win large cash prizes for beating others at well-known PlayStation 3 and Xbox 360 games like Halo 3 and FIFA 10. Virgin Gaming, and its competitors like BringIt.com and Galaxy4Gamers.com, are careful not to describe their activities as “gambling” or “betting.” To stay on the right side of the law, they offer games of skill, as opposed to games of chance. Players wager sums, described as “transactions” and “challenges,” against one another, and not the house. The companies make money by taking service fees, a percentage of the winnings off the top. In Virgin Gaming’s case, it is 12 percent of the amount wagered. Industry observers say they expect similar offerings to soon be available on portable devices.
Read more at the New York Times.
