{"id":6204,"date":"2025-08-06T22:40:31","date_gmt":"2025-08-06T19:40:31","guid":{"rendered":"https:\/\/legalbit.top\/en\/?p=6204"},"modified":"2026-10-23T17:14:56","modified_gmt":"2026-10-23T14:14:56","slug":"play-to-earn-p2e","status":"publish","type":"post","link":"https:\/\/legalbit.top\/en\/play-to-earn-p2e\/","title":{"rendered":"Play-to-Earn (P2E) or Gambling in Disguise? Key Legal Risks for Developers"},"content":{"rendered":"\n<div class=\"lbm\"><svg width=\"0\" height=\"0\" style=\"position:absolute\" aria-hidden=\"true\"><symbol id=\"i-list\" viewBox=\"0 0 24 24\"><path d=\"M9 6h11M9 12h11M9 18h11\"\/><path d=\"M4 6h.01M4 12h.01M4 18h.01\"\/><\/symbol><symbol id=\"i-user\" viewBox=\"0 0 24 24\"><circle cx=\"12\" cy=\"8\" r=\"4\"\/><path d=\"M4 21c0-4 3.6-7 8-7s8 3 8 7\"\/><\/symbol><symbol id=\"i-ban\" viewBox=\"0 0 24 24\"><circle cx=\"12\" cy=\"12\" r=\"9\"\/><path d=\"M5.6 5.6l12.8 12.8\"\/><\/symbol><symbol id=\"i-layers\" viewBox=\"0 0 24 24\"><path d=\"M12 3l9 5-9 5-9-5z\"\/><path d=\"M3 13l9 5 9-5\"\/><\/symbol><symbol id=\"i-eye\" viewBox=\"0 0 24 24\"><path d=\"M2 12s4-7 10-7 10 7 10 7-4 7-10 7S2 12 2 12z\"\/><circle cx=\"12\" cy=\"12\" r=\"3\"\/><\/symbol><symbol id=\"i-doc\" viewBox=\"0 0 24 24\"><path d=\"M7 3h8l4 4v14H7z\"\/><path d=\"M15 3v4h4M10 12h6M10 16h6\"\/><\/symbol><symbol id=\"i-pen\" viewBox=\"0 0 24 24\"><path d=\"M4 20l4-1 11-11-3-3L5 16z\"\/><path d=\"M14 6l3 3\"\/><\/symbol><symbol id=\"i-book\" viewBox=\"0 0 24 24\"><path d=\"M4 5a2 2 0 0 1 2-2h13v16H6a2 2 0 0 0-2 2z\"\/><path d=\"M4 19V5\"\/><\/symbol><symbol id=\"i-alert\" viewBox=\"0 0 24 24\"><path d=\"M12 3l10 18H2z\"\/><path d=\"M12 10v4M12 17.5h.01\"\/><\/symbol><symbol id=\"i-bulb\" viewBox=\"0 0 24 24\"><path d=\"M9 18h6M10 21h4\"\/><path d=\"M12 3a6 6 0 0 0-3.5 10.9c.6.5 1 1.2 1 2.1h5c0-.9.4-1.6 1-2.1A6 6 0 0 0 12 3z\"\/><\/symbol><symbol id=\"i-info\" viewBox=\"0 0 24 24\"><circle cx=\"12\" cy=\"12\" r=\"9\"\/><path d=\"M12 11v5M12 8h.01\"\/><\/symbol><\/svg><section class=\"lbm-intro\"><div class=\"lbm-intro-main\"><p class=\"lbm-lead\">A P2E project risks being treated as gambling if players pay in, the outcome depends on chance and the reward can be sold. Since 2021 the risks have gone beyond gambling: securities law, MiCA, loot box rules and app store requirements now apply too. We go through how to test a game against the gambling elements, how to assess tokens and NFTs as financial assets and what lowers the risk.<\/p><p class=\"lbm-verified\">Checked on 21 October 2026. Rules and sources are current as of this date.<\/p><ul class=\"lbm-toc\"><li><a href=\"#now\">What changed<\/a><\/li><li><a href=\"#test\">Three elements<\/a><\/li><li><a href=\"#more\">Beyond gambling<\/a><\/li><li><a href=\"#flags\">Red flags<\/a><\/li><li><a href=\"#fix\">How to reduce risk<\/a><\/li><li><a href=\"#faq\">FAQ<\/a><\/li><\/ul><\/div><\/section><section id=\"now\"><h2>What has changed since 2021<\/h2><div class=\"lbm-cols\"><p>P2E peaked in 2021, and the audience of the best-known projects has since shrunk sharply: according to CoinGecko data as of November 2023, 75.5% of the 2,817 Web3 games launched in 2018\u20132023 had shut down. The market is moving from \u201cplay for income\u201d to ordinary games with asset ownership.<\/p><p>The market cooled while regulation became more specific: gambling, securities, MiCA and child protection apply to P2E at the same time. So a project has to be tested under several regimes at once.<\/p><\/div><\/section><section id=\"test\"><h2>Is play-to-earn gambling? The three elements<\/h2><p style=\"max-width:70ch\">In most jurisdictions, from the US to the EU, gambling is defined by three elements. Wording differs: some places need only a material element of chance, others require it to predominate, and in the EU much depends on national law and the regulator\u2019s position. Check the law of every country where you have players.<\/p><div class=\"lbm-roles\"><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-pen\"\/><\/svg><\/span><h3>Consideration<\/h3><p>The player pays or risks something of value: buys starter NFT (non-fungible token) characters, stakes tokens to enter a tournament, pays for loot boxes with tradable assets. If entry requires money, this element is almost certainly present.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-layers\"\/><\/svg><\/span><h3>Chance<\/h3><p>The outcome is set by luck rather than skill: RNG (random number generator) in breeding, drops from chests, PvP wins decided by critical hits. This is the most subjective test: roulette versus chess.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-doc\"\/><\/svg><\/span><h3>Prize<\/h3><p>The reward has monetary value: tokens traded on exchanges, rare NFTs sold on marketplaces. In P2E it is almost always present, so risk is reduced through consideration and chance.<\/p><\/div><\/div><\/section><section id=\"more\"><h2>Beyond gambling<\/h2><div class=\"lbm-roles\"><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-book\"\/><\/svg><\/span><h3>Securities and MiCA<\/h3><p>In 2023 the US SEC (US Securities and Exchange Commission) treated NFTs as investment contracts under the Howey test in the Impact Theory and Stoner Cats cases. In the EU, MiCA does not cover unique, indivisible NFTs, but fractionalising an NFT or issuing large series of interchangeable items may bring them into scope (MiCA recital 11).<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-ban\"\/><\/svg><\/span><h3>Loot boxes<\/h3><p>Belgium banned them as gambling. Since 17 March 2026 Brazil\u2019s Law No. 15,211\/2025 (ECA Digital) bans loot boxes in games aimed at or likely to be accessed by children and adolescents. The law\u2019s general sanctions include fines of up to 10% of the group\u2019s revenue in Brazil, capped at R$50 million per infringement. A Digital Fairness Act proposal is expected in the EU in Q4 2026. The UK does not treat loot boxes as gambling.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-eye\"\/><\/svg><\/span><h3>App stores<\/h3><p>Since 2023 Google Play allows NFTs if declared in Play Console, but bans selling a chance to obtain NFTs of unknown value, staking NFTs for real-world prizes and promoting earnings from playing or trading. Apple requires NFT sales through in-app purchase and does not let NFTs unlock app features. Steam has not accepted games with crypto or NFTs since 2021.<\/p><\/div><\/div><div class=\"lbm-co dark\"><span class=\"lbm-ico\"><svg><use href=\"#i-alert\"\/><\/svg><\/span><div><b>Consequences if the game is deemed gambling<\/b><p>A licence in every jurisdiction where you have players, AML\/KYC, 18+ or 21+ age limits, geo-blocking, fines and criminal liability for founders, removal from app stores.<\/p><\/div><\/div><\/section><div class=\"lbm-svc\"><div><b>Need help with this topic?<\/b><p>We will review your situation and propose a solution for your project.<\/p><\/div><a class=\"lbm-svc-btn popmake-4929\" href=\"#\" role=\"button\">Contact us<\/a><\/div><section id=\"flags\"><h2>Red flags<\/h2><div class=\"lbm-roles\"><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-alert\"\/><\/svg><\/span><h3>High barrier to entry<\/h3><p>Expensive NFTs are needed, with no way to play without investing.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-eye\"\/><\/svg><\/span><h3>ROI-led marketing<\/h3><p>Ads promise \u201c10x\u201d, \u201cfast earnings\u201d and \u201creturn on investment\u201d instead of gameplay.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-layers\"\/><\/svg><\/span><h3>Chance dominates<\/h3><p>Core earning mechanics, such as loot boxes, are entirely random.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-ban\"\/><\/svg><\/span><h3>Sham free-to-play<\/h3><p>A free mode exists for show and offers no real path to earn, so a regulator may call it illusory.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-list\"\/><\/svg><\/span><h3>Economy built on new players<\/h3><p>Payouts to existing players depend on new money coming in: the hallmark of a pyramid scheme.<\/p><\/div><\/div><\/section><section id=\"fix\"><h2>How to reduce the risk<\/h2><ol class=\"lbm-steps\"><li><span class=\"lbm-ico\"><svg><use href=\"#i-pen\"\/><\/svg><\/span><div><h3>Build on skill<\/h3><p>Success depends on strategy and player actions, with chance secondary. Record this in your Whitepaper.<\/p><span class=\"lbm-tag\">Start here<\/span><\/div><\/li><li><span class=\"lbm-ico\"><svg><use href=\"#i-user\"\/><\/svg><\/span><div><h3>Offer a genuine free-to-play route<\/h3><p>Players can start and earn, even if more slowly, without investing. This helps against the consideration element.<\/p><\/div><\/li><li><span class=\"lbm-ico\"><svg><use href=\"#i-ban\"\/><\/svg><\/span><div><h3>Rework loot boxes<\/h3><p>Players know what they will get, or items are cosmetic and do not affect balance or earnings. Account for rules on minors.<\/p><\/div><\/li><li><span class=\"lbm-ico\"><svg><use href=\"#i-eye\"\/><\/svg><\/span><div><h3>Audit your marketing<\/h3><p>Talk about gameplay, asset ownership and community, not income and ROI (return on investment).<\/p><span class=\"lbm-tag must\">Urgent<\/span><\/div><\/li><li><span class=\"lbm-ico\"><svg><use href=\"#i-doc\"\/><\/svg><\/span><div><h3>Get a legal opinion before launch<\/h3><p>Counsel reviews the mechanics, tokenomics and Whitepaper and names the risks in each target jurisdiction.<\/p><\/div><\/li><\/ol><div class=\"lbm-co soft\"><span class=\"lbm-ico\"><svg><use href=\"#i-bulb\"\/><\/svg><\/span><div><b>Tip<\/b><p>Do not wait for a regulator\u2019s letter. An opinion before launch costs less than changing the mechanics after it.<\/p><\/div><\/div><\/section><figure class=\"lbm-pull\"><q>A regulator does not ask whether it is a game. It asks what you are really selling: entertainment or a chance to earn.<\/q><cite>The LegalBit team<\/cite><\/figure><section id=\"faq\"><h2>Frequently asked questions<\/h2><div class=\"lbm-faq\"><details><summary>Can a P2E game be treated as gambling?<\/summary><p>Yes, if consideration, chance and a prize are all present. A prize is almost always there in P2E, so risk depends on paid entry and how much chance the mechanics contain.<\/p><\/details><details><summary>Does a P2E game need a gambling licence?<\/summary><p>If the game is deemed gambling, a licence is needed in every jurisdiction where you have players. Skill-based mechanics, free entry and careful marketing reduce the risk.<\/p><\/details><details><summary>Are in-game tokens and NFTs securities?<\/summary><p>It depends on the jurisdiction and design. In the US NFTs have been treated as investment contracts, and in the EU fractionalised NFTs or large series may fall under MiCA.<\/p><\/details><\/div><p class=\"lbm-more\"><b>See also: <\/b><a href=\"\/en\/loot-boxes-secondary-market\/\">Loot Boxes and Secondary Markets: When a Game Mechanic Becomes Gambling Under EU and US Law<\/a>; <a href=\"\/en\/legal-support-for-token-sales-procedure\/\">Legal Support for Token Sales Procedure<\/a>; <a href=\"\/en\/p2e-token-security-payment-or-game-currency\/\">P2E game token: security, payment instrument or in-game currency<\/a>. Services: <a href=\"\/en\/gamedev-gamefi-legal\/\">legal support for GameDev and GameFi<\/a>.<\/p><div class=\"lbm-src\"><b>Sources<\/b><ul><li><a href=\"https:\/\/www.coingecko.com\/research\/publications\/how-many-gamefi-dead\" rel=\"nofollow noopener\" target=\"_blank\">CoinGecko: how many web3 games have died<\/a><\/li><li><a href=\"https:\/\/www.sec.gov\/newsroom\/press-releases\/2023-163\" rel=\"nofollow noopener\" target=\"_blank\">SEC: Impact Theory (2023)<\/a><\/li><li><a href=\"https:\/\/www.sec.gov\/newsroom\/press-releases\/2023-178\" rel=\"nofollow noopener\" target=\"_blank\">SEC: Stoner Cats (2023)<\/a><\/li><li><a href=\"https:\/\/eur-lex.europa.eu\/eli\/reg\/2023\/1114\/oj\" rel=\"nofollow noopener\" target=\"_blank\">EUR-Lex: Regulation (EU) 2023\/1114 (MiCA)<\/a><\/li><li><a href=\"https:\/\/support.google.com\/googleplay\/android-developer\/answer\/13607354?hl=en\" rel=\"nofollow noopener\" target=\"_blank\">Google Play: Blockchain-based Content policy<\/a><\/li><li><a href=\"https:\/\/developer.apple.com\/app-store\/review\/guidelines\/\" rel=\"nofollow noopener\" target=\"_blank\">Apple: App Review Guidelines (3.1.1)<\/a><\/li><\/ul><\/div><\/section><\/div>\n\n\n\n<div class=\"lb-ac\"><h2>This is what we do<\/h2><p>How we help projects with this topic:<\/p><ul><li><a href=\"https:\/\/legalbit.top\/en\/gamedev-gamefi-legal\/\">Legal support for GameDev and GameFi<\/a><\/li><li><a href=\"https:\/\/legalbit.top\/en\/regulatory-and-compliance\/\">Licensing, compliance and AML\/KYC<\/a><\/li><\/ul><\/div>\n\n\n\n<script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"BlogPosting\",\"headline\":\"Play-to-Earn (P2E) or Gambling in Disguise? 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Since 2021 the risks have gone beyond gambling: securities law, MiCA, loot box rules and app store requirements now apply too. 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