Why the GTA Casino is Giving Regulators a Headache

Posted by Harry Kane on Wednesday, August 7, 2019

Grand Theft Auto has always been a trail-blazing console game franchise, and one that has put the developer’s at Rockstar Games on the map. In fact, GTA has become the third-biggest selling game franchise of all-time, with more than 270 million units sold globally since the first release back in 1997.

The franchise has also evolved significantly over time, with the GTA 5 iteration shifting online and boasting an open-world design that lets players roam freely throughout the fictional city of Los Santos.

The franchise has also flirted with online wagering during the last five years or so, and despite the controversy and debate that this has inspired, Rockstar Games have pressed ahead with their plans to introduce a virtual gambling hub as part of their latest downloadable update.

But why is this likely to pose a headache to iGaming regulators in the UK, and how is the UKGC likely to respond to GTA’s popular online casino?

The GTA Casino – How Does It Work and Why Is It So Controversial?

Whilst GTA’s online casino may be controversial in the eyes of some individuals, of course, there’s no doubt that the game’s players have been eagerly anticipated its launch for years now.

After all, the casino structure has stood idle in San Andreas since the very earliest days of GTA Online, but until now the doors of this imposing building have had an ‘Opening Soon’ banner draped outside.

The doors have finally been swung open, however, with developers delivering on their promise that the so-called Diamond Casino & Resort will feature lavish amenities, first-class shopping and the state-of-the-art gambling facilities.

As you’ve probably guessed, this virtual casino also allows for real money wagering, as players can gamble freely across all of their favourite slot machines and table games.

But how exactly does this work? In simple terms, players purchase virtual dollars in-game, using their own, hard-earned cash to secure this currency. Currently, players can purchase a staggering $500,000 GTA dollars for £5.99, which can then be wagered on a host of different games and even virtual sports bets.

Any winnings will be returned in GTA dollars, which can subsequently be converted back into real world cash or used to complete further wagers as players desire.

Of course, the opening of the GTA Casino comes just weeks after online gambling was unveiled as part of the latest Red Dead Online update, and there’s no doubt that it remains a key focus for Rockstar Games going forward.

However, the introduction of real money wagering in this type of game has undoubtedly captured the attention of regulators and watchdogs throughout the UK, whilst the developers must know that they’re treading a fine line when it comes to safeguarding vulnerable and underage players.

Why Is the GTA Casino Causing a Headache for Regulators?

It’s certainly clear why the game has caused such controversy to date, as whilst GTA 5 may be an 18+-rated video game, the online, multiplayer iteration of the title and its real money wagering features remain accessible to younger individuals nationwide.

This instantly creates an issue in the eyes of the UK Gambling Commission, who have the safeguarding of vulnerable and underage gamblers one of their core strategic objectives through 2021.

Before we consider the regulator’s likely response to the GTA’s online casino, however, it’s important to recall their previous stance on so-called lootboxes and similar in-game features.

More specifically, the Commission has previously revealed that lootboxes and features such as FIFA Ultimate Team packs do not fit the strict definition of gambling, despite the fact that they require players to spend real cash without knowing precisely what they’ll receive for their money.

The reason for this is simple; as there’s no formal way to resell the contents of lootboxes or Ultimate Team packs once they’ve been unlocked.Similarly, players will be unable to cash out their bets, and the UKGC recently delivered its official verdict to the Department for Culture, Media and Sport.

GTA’s online casino opened its virtual doors just days afterwards, however, and there’s no doubt that this in-game feature builds on the mechanics of loot boxes by enabling players to buy virtual currency using real money and exchange these for chips that can be used directly during various casino games.

In this respect, players are essentially gambling for real money in a largely unregulated environment, as part of a grey and growing marketplace that is continuing to push the remits of the UKGC’s power.

Under the UKGC’s most recent definition of gambling, however, the GTA Online casino would not come under the regulator’s jurisdiction. After all, whilst players can cash in with money they can’t cash out, so the fact that they’re wagering on virtual casino games becomes largely irrelevant.

This is therefore a significant area of concern for the regulator, who have clearly been caught off-guard by mechanics of GTA’s online casino and the blatant integration of real money wagering.

The fact that there’s little to stop younger players from accessing this type of gameplay (particularly in the form of ID or age verification) only serves to compound this issue in the eyes of the UK regulator, who is currently bound by its own definition of gambling and previous approach to policing lootboxes.

The Last Word

This is certainly providing a regulatory headache for the UKGC, who will most likely want to tackle GTA’s Online casino and introduce safeguards for young and potentially vulnerable gamers.

However, the regulator is right to say that there’s no legal way to convert in-game money into real world currency, whilst it’s hard to argue with their precise definition of gambling outside of virtual casinos and sportsbooks.

The question that remains is whether the UKGC will adapt its outlook as this grey market continues to grow, particularly given GTA’s overt use of casino gameplay and integration of real-money wagering?

This will definitely be an interesting space to watch in the months and years ahead, and the fact remains that GTA’s online casino may well force the regulator to revisit its definition of gambling in the digital age.