Loyalty Rewards for Microtransactions on Video Games: Is This a Type of Gambling?

My goal in this brief commentary is to describe a new type of game feature where people who play video games can earn reward points that can then be cashed out for gift cards or for cash in some countries. In-game purchases are not required to earn reward points, but people who spend real money on these games will earn more reward points. In my opinion, this scheme crosses the line into a form of indirect gambling. I use the term “indirect” because in many cases, the rewards are paid out from a different software application than the game itself, and the link between the money spent and the reward earned is indirect. The gambling law community needs to be aware of this scheme and determine if this constitutes gambling.