UK-based YouTubers found guilty of illicit gambling activities.
A trial against the operators of an eSports betting site in the UK comes to an end with significant fines. Dylan Rigby and Craig Douglas are ordered to pay approximately 307,000 euros to the state. They ran the betting platform FUTgalaxy without the required gambling license and allegedly enticed minors by posting videos on YouTube.
Craig Douglas, from Dorset, UK, oversees a YouTube channel about the computer soccer game FIFA known as "NepentheZ." With over 1.4 million subscribers, his channel posts videos with between 150,000 and 350,000 clicks. In court, it was found that Douglas used his vast reach to promote illegal betting.
In the "FIFA Ultimate Team" mode, players construct their own teams online, earning "FIFA Coins" through regular play or by selling virtual items on Electronic Arts' marketplace. However, an underground market has emerged where virtual coins are exchanged for actual money on other websites.
Douglas and Rigby operated FUTgalaxy, where users could place football bets on European league results using their "FIFA Coins." NepentheZ featured FUTgalaxy in his YouTube videos with aggressive advertisements, emphasizing that minors were also allowed to play due to the use of virtual currency. Despite not mentioning his role as FUTgalaxy CEO, he pretended to be a casual visitor.
In September 2016, the Birmingham Crown Prosecution Service began a criminal investigation, accusing the duo of offering unlicensed sports betting and allowing underage gambling. It was established during the hearing that no age checks were implemented, and the defendants initially defended their actions but later admitted to violating the Gambling Act. They may have avoided jail time by partially confessing.
The presiding judge, Jack McGarva, scolded both Douglas and Rigby for endangering minors. In his sentencing statement, he emphasized:
"Children played on your website. It's impossible to know how many or how they were affected. I believe you were aware of this and did nothing to prevent it. Instead, this went on for around six months."
A 14-year-old witness testified to losing 800 euros during a single day of gambling. The judge concluded that virtual goods are equivalent to real money and thus subject to the same regulations. UKGC head Sarah Harrison commented:
"This was one of the most severe cases we've investigated and prosecuted. The judge's sentence and massive fines show the gravity of the situation. This case demonstrates that we will utilize all legal powers to prosecute unlicensed businesses."
However, the website FUTgalaxy remains online, appearing to have made only minor changes to its legal notice. Currently, an Irish company operates the site.
Comparisons to a similar case in the US
Previously, two YouTubers caught the public's attention for their betting offers. Tom Cassel, aka "ProSyndicate," and Trevor "TmartN" Martin focus on a different game, namely the tactical shooter "Counter-Strike: Global Offensive" (CS:GO). Virtual items can similarly be collected and traded in the game. Unlicensed third-party providers allow exchanging these items for actual money. Through CSGO:Lotto, the two YouTubers created a corresponding site that let customers use their virtual items as stakes for bets or casino games. They never identified themselves as operators, and no gambling license was produced.
The US authorities then instructed Valve, the game's developer, to halt these offers. Although Valve has only taken action in the form of cease-and-desist orders, most related offers are still functioning or under different names. Despite the striking similarities, the British ruling cannot be interpreted as a precedent for the US case due to differing legal frameworks. The outcome of the case in the US is yet to be determined. The virtual goods market derived from computer games is estimated to be worth billions of dollars.
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Source: www.onlinecasinosdeutschland.com
