Will Australian Law-Makers Spin Trouble for Jagex?

by JoHarrington

The controversial Squeal of Fortune may soon become a thing of the past, if an Australian senator has his way.

Federal Senator Nick Xenophon is on a personal quest to plug loop-holes in Australian laws which allow young gamers to gamble online. He has Runescape's Squeal of Fortune in his sights.

The in-game feature has escaped gambling laws all over the world, because rewards cannot be cashed outside the game. It is precisely this aspect which will be debated in the Australian Senate.

If the loophole is plugged, then Jagex will not legally be able to retain gambling-style micro-transactions if Runescape is available Down Under.

Nick Xenophon Targets Jagex in Anti-Gambling Law

As the wheel of fortune turns, the squeal may soon be spun right out of Runescape; if Jagex wants to keep its Australian revenue.

Federal Senator Nick Xenophon is no stranger to the fight against gambling. Some might say that it's his personal crusade in politics.  But until now his focus has been the big concerns, like betting shops and huge poker games.

Only now his attention has been caught by a series of high-profile stories involving young Runescape players. Huge bills have been run up on their parent's credit cards, as they spin the wheel for in-game profit.

In private correspondence, Xenophon's spokesperson Anna Gordon explained, "According to gambling research experts, fantasy-based games like Runescape are as addictive as poker machines because they operate on the same processes, especially as some games allow players to bet using real money through credit cards or PayPal.

"However, because any credits or ‘winnings’ can’t be cashed-out the games are exempt from Australia’s Interactive Gambling Act."

It's precisely this law which Xenophon is seeking to amend.  He will be introducing his proposal to his fellow legislators, when the Australian Parliament meets in February 2013.

Squeal of Fortune Allows Wealth to Dictate Game-Play

Since Jagex moved beyond the purely cosmetic awards, Squeal of Fortune became probably their most controversial game update ever.

To be fair, the majority of Runescape players probably care little for the wider question of gambling ethics. They're largely the kind of risk-takers who will frequently risk hard-won weaponry against a huge boss fight.  But Squeal of Fortune has wider implications to them.

It allows real world money to be used to effectively purchase experience and items. For the first time, the size of your wallet impacts upon the edge that you have in the gaming world.  The poor grind repetitive tasks in game-play, while the rich buy it with micro-transactions.  In a time of recession, this heightens the sense that it simply isn't just.

Which is why many turned to their governments for help.

Real world trading had always been a no-no; in-game gambling had been discouraged. Then came Squeal of Fortune.
It was inevitable that Runescape would transform into a Nexon clone. Runecoins sees real world money cashed in for cosmetic game items.

What Australia's Law Might Mean for Runescape

Ever since the introduction of Squeal of Fortune, players have been contacting their governments for assistance. Only Australia appears to have taken this seriously.

The Interactive Gambling Act, in Australia, provides the framework within which companies can offer gambling services on-line.  If money can be won or lost, then it's covered by the legislation, but only if the rewards are real world.

Jagex have dodged this bullet by ensuring that all of the potential prizes in Squeal of Fortune can only be used within Runescape.  It may be an XP lamp, which boosts the player's skill abilities, or a weapon which gives an edge in combat.  But they are all fundamentally pixels. 

Anna Gordon continued, "The amendment proposed will mean that if actual money can be lost on the game it will be defined as a “gambling service” and therefore prohibited."

Jagex is likely to argue that no money is ever 'lost', because the player always wins something. It might be a relatively useless in-game item like a cabbage, but it's still a prize. This isn't a view shared by Federal Senator Nick Xenophon, who will be advising that these are precisely the kind of loopholes which have to be plugged.

These are big stakes for both parties.  If Xenophon is successful, then it's inconceivable that Jagex will side-step the problem by making Runescape unavailable in Australia.  That would be a massive player-base locked out and a hit to their profits which couldn't be absorbed.  Nor would they simply stop Squeal of Fortune being available in that country only. The logistics of altering the game code would be very cost prohibitive.

In short, if the feature can't be run in Australia, then it's unlikely to be included anywhere else.  It could well mean the end of the unpopular cash-cow for the whole of Runescape.

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JoHarrington, on 02/06/2013
 
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JoHarrington 1 day ago

It sounds like it's all kicking off over there in Australia. That's one way to garner public support!

Fargy 1 day ago

I don't know how the house reacted. However a guy called Tom Waterhouse could inadvertently help. He is a bookmaker who bet large on saturation TV advertising for his sports betting business. He even got onto football commentary panels to give his thoughts and odds. Public reaction has been extremely adverse, that may help Nick get the support he needs for the amendment.

JoHarrington 1 day ago

Ah! Thank you very much for the heads up. I will certainly like to read that when I'm back off my holiday.

How was it received in the house?

Fargy 1 day ago

Nick introduced his Interactive Gambling Amendment (Virtual Credits) Bill 2013 last week.

Contact Anna Gordon at his website for Nick’s speech and the explanatory memorandum. She should have some .pdfs laying around. Or I can attach and email them? Just need to advise which email you would like them sent to.

JoHarrington 4 days ago

Ah! Thank you very much. :)

Fargy 4 days ago

Jo - I'm not sure on the Quakers Hills story. Dr King is currently in transit abroad and may not have the study on him but can be reached here daniel.king@adelaide.edu.au

JoHarrington 4 days ago

Fargy - An interesting study there. I'd quite like to read that one. Is the kid from Quakers Hill the same one you linked me to before? I thought the bill was higher on that story.

JoHarrington 4 days ago

Simon - You speak for us all! They actually changed that rule to facilitate the SoF. I would also like to see it go away.

Fargy 5 days ago

Just another media report on Runescape in Australia.

http://www.brisbanetimes.com.au/natio...

One of the report's authors, Dr King mentioned this in an email to me,

""Our study asked participants to indicate the games they played that featured gambling. Runescape came up, as did games like Red Dead Redemption and GTA. Social media games like Slotomania and Zynga Poker were popular too."

Simon 5 days ago

I play this game and Squeel of fortune is one of the things that ruined the game experince for me. They have a strict rule that says that you aren't allowed to purchase in game curency for real money. But it's the exact thing they are doing but legit. What I hope to see is that Jagex removes this feature.




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