Skill Games For Money Legal

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No Gambling at GameColony.com

According to the statutes of most US states and US Federal statutes, gambling is defined as:
risking something of value upon the outcome of a contest of chance.

Skill Games Online

At GameColony we offer Games of Skill only.
Here's how 2 different US courts have ruled regarding our most popular Games of Skill: Gin Rummy and Backgammon declaring them a non-gambling games of skill:Also see: US President G. Bush and Karl Rove Playing Gin Rummy
Is Playing Games at GameColony.com Legal?

Yes, absolutely legal!
Since its inception in 1999, GameColony.com has operated in full compliance with US Federal and State Laws. Skill games have always been legal in the states in which GameColony.com offers them.
GameColony.com games are no different from carnival games, chess and golf tournaments or other skill-based games that have been played for cash or prizes in the offline world for hundreds of years -- we've just taken them online.
GameColony's fee-based tournaments do not constitute gambling because they involve predominantly skill, as opposed to chance, and are designed as interactive online entertainment for adults. Participation is restricted to individuals of legal age in their respective jurisdiction. Players must also meet criteria for location eligibility in order to participate - please see our Terms and Conditions for full details.
The newest US Federal legislation of September 30, 2006 -- H.R.4411 'Internet Gambling Enforcement Act of 2006' Sec. 5362 defines illegal betting or wagering as including 'the purchase of a chance or opportunity to win a lottery or other prize (which opportunity to win is predominantly subject to chance)'.
The new Federal legislation includes a specific allowance for online competitions in games of skill, such as those offered by GameColony.com, to continue in the US states in which they have always been legal (please see our Terms and Conditions).
The reality is that skill gaming is in the same position it was in before the bill -- it is still legal in the majority of US States. The new bill does not change the definition of gambling or the legality of skill games.
'If skill games are not unlawful under applicable state or Federal law, then they are not unlawful under this Act. The sponsors of this legislation repeatedly asserted that nothing in this Act converts currently legal activities to unlawful activities,' stated Anthony Cabot, an attorney with the Las Vegas law firm of Lewis and Roca who is considered to be a leading authority on legal gaming.
The outcome of all GameColony.com games is based predominantly upon the players' skill, not chance. This is in sharp contrast to lotteries or bingo games typically found in casinos, where every player ultimately faces the same random odds. Even with games where chance has some role in the outcome of the contest, such as solitaire, GameColony.com has engineered all its games such that the outcome is predominantly based on the player's skill. For example, GameColony.com levels the playing field by providing each player within the tournament with hands of cards of equal difficulties so the winner is ultimately determined by how quickly and skillfully each player approaches the game. While every GameColony solitaire hand is potentially solvable if a player plays their cards right, a player ultimately wins a tournament by outscoring their opponent whether or not they solve their hand.
Although the distinctions between skill-based games and games of chance are clear, there are a few states within the U.S. that have not yet permitted skill-based games to be played for cash or prizes. For those states, GameColony games can be played, but only on a free basis without cash or prize offerings.
As noted by Arizona Supreme court:
'Paying an entrance fee in order to participate in a game of skill . . . in the hope of winning prize money guaranteed by some sponsor to successful participants, is a traditional part of American social life. [W]e are reluctant to adopt a statutory interpretation which would turn sponsors of golf, tennis or bridge tournaments, ... and the like into class 6 felons . . . [Furthermore, where the legislature specifically created a state-sponsored lottery,] it is difficult . . . to find any moral imperative for a sweeping interpretation of a gambling statute in order to make the sponsor of a crossword puzzle contest a criminal while his next door neighbor, betting a dollar with the state to win a million in the state lottery, is a virtuous citizen'(from Am. Holiday Ass'n 727 P.2d at 812).
What is Skill?
Here's a definition of Skill from Alabama Supreme Court:'Skill' - in the context of activities ... is merely the exercise, upon known rules and fixed probabilities, of 'sagacity,' which is in turn defined as 'quickness or acuteness of sense perceptions; keenness of discernment with soundness of judgement; shrewdness; [the] ability to see what is relevant and significant.' (Webster's New International Dictionary 2ed, 1953)
Also see Playing skill games can improve your health!

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Games of skill (wiki definition) come in all shapes and sizes. They can be based on traditional card games such as spades or bridge, word games like Scrabble, strategy games like chess and even fast-twitch games like first-person shooters. The one thing they all have in common is that skill is the dominant factor in achieving victory. People have been betting on these games for as long as these games have been played.

It is only recently that people have been able to play these games online for real money. Today, there are numerous websites that host real money skill games for people just like you. So if you’re tired of playing your friends for fun, a real money skill game site is just the solution. You’ll get to play against serious opponents and win cash when you win. Best of all, it’s quite a bit of fun. Even a small wager makes every game feel like an important event.

How To Play Online Skill Games

The concept of online skill gaming is pretty straightforward. You sign up at a reputable skill gaming website, make a deposit with your credit card or PayPal account and then choose from the available games at that website.

Every game will be listed on the main page of the website after you log in. You will also see stats that tell you how many people are playing that game and how much it costs to play. In most cases, you’ll be paired with a single opponent in a head-to-head match.

When you join a game, you and your opponent will both be asked to put up your wager. The winner of that game takes everything minus a small house fee. Games with more than 2 people have different payout structures, but the primary goal in any case is to beat your opponents and win their money.

The websites that host skill games make money by taking a small fee out of every real money match. For example, King.com keeps 25% of every entry fee with the remaining 75% going straight to the players. So if you play in a $5 match against someone else, $3.75 will go towards the prize pool. This means that if you win a $5 match, you’ll get $7.50 (your entry fee plus your opponent’s entry fee minus 25%).

Legal Real Money Games In The USA

Skill game websites host all different types of games. Some of the most popular are strategy games such as rummy, backgammon, dominoes, hearts and spades. These games convert well to the internet and allow competitive people to go head-to-head for any stakes they like.

You’ll also find a variety of puzzle games, word games, trivia games and even a few sport games such as pool and soccer. The variety is almost endless, but all games involve skill of some sort. It might be skill at clicking the mouse, rearranging words or recalling ancient history – it all depends on the types of games you play.

For most games, a matchmaking system is used to pair players of similar skills. This is done by finding opponents who have similar records to yours. The goal here is to give everyone a real challenge but also an honest shot at winning money. Matchmaking doesn’t always work perfectly, but it does a pretty good job overall.

What About Chess?

Real money chess doesn’t really work online because it is way too easy to cheat in chess. A good computer program can beat just about any player in the world. Even if a chess site were to implement software that turned off all nonessential programs on your computer, all you would need to circumvent that is a laptop and a copy of Chessmaster 9000.

Online Skill Games For Money

Chess is hugely popular as an online game; just not for real money. Computers have “solved” chess and it’s too easy to put that power to use. If you want to play chess for real money, you’ll want to play in old-fashioned face-to-face games.

Difference Between Skill and Gambling Games

Classic games such as chess, checkers and backgammon are considered to be games of skill because luck plays little role in determining the outcome. To win consistently at these games, you must be a skilled player. Luck plays little to no role in these types of games.

The lack of luck in skill games is what differentiates skill games from gambling games. Gambling games such as roulette and craps may involve a little skill, but over the long run, the outcome is based on luck. The best craps players in the world cannot beat the casino at its own game. The same thing also goes for all other gambling games (with a few exceptions such as card counting in blackjack).

A skilled craps player may now how to pick bets that have a low house advantage, but that player still has no chance of beating the house. The only thing that player can do to win money is get lucky. The same thing goes for roulette, 3 card poker, slot machines and other casino games.

Some games are not as clear-cut. For example, poker is considered by avid players to be a game of skill even though it does have elements of chance. That debate can go back and forth forever but at the end of the day, the law has the final say in the matter.

Every state uses its own system to determine which games are considered “skill” and which are considered “chance.” Real money skill game websites avoid that whole mess by sticking with games that are clearly based on skill. So you’ll find games like backgammon and spades, but not games like poker at those sites.

The Legality of Betting on Skill Games

Chess, dominoes, and other online skill games have been exempted by most laws dealing with online betting in the USA.

The fact that skill games are based on skill and not on luck is important because that is what makes it legal to bet real money on those games over the internet in most states. Anti-gambling laws that target the internet deal specifically with games that have a greater element of chance. Skill games avoid that issue altogether.

The only problem here is that it’s not always clear what is a game of skill and what isn’t. For example, many of us would consider poker a game of skill but the government begs to differ and poker is therefore tightly regulated. On the other hand, chess is very clearly a game of skill as there is zero chance involved in the game.

In most states, it is legal to play skill games online for real money. There are no federal laws that make it a crime to play or host real money skill games over the internet. However, some states do have laws against betting on ANY game.

Play Skill Games For Money

State laws are notoriously unclear on the legality of online skill game betting. Most states appear to have no laws on the books that prohibit the activity, but it’s a big question mark in some states.

States That Do NOT Allow Real Money Skill Games

Legitimate skill game websites do not accept customers from any restricted states. If you live in one of those states, you’ll have to look into other options such as daily fantasy sports betting or horse racing.

Money Skills Math Game

Those of you who live in states where real money games are legal can join any skill gaming website and give it a shot. You can either jump in right away and play for real money or start off slowly and try out the interface for free at first. When you’re ready to play for real, just sign up for an account and fund your account.