Foreword｜PHL63
More recently, Metaverse promises to be a gaming platform of a new dimension. This has not gone unnoticed by the industry. More and more operators are therefore attracted by the various Metaverse worlds/projects currently being developed. Against this backdrop, legal challenges loom large. The following is a brief overview of the regulation of online gambling and the new challenges that Metaverse brings.
Learn about the virtual world｜PHL63
Like almost all articles about the Metaverse, it is imperative to briefly explain what the Metaverse is, or better should be. Currently, there is no metaverse. Instead, there are various efforts to develop and build a three-dimensional successor to the internet we know today. It’s still in the early stages of development, but many expect the Metaverse to steadily integrate into real life in terms of authenticity and eventually become as ubiquitous as the internet is today. Therefore, predictions for the Metaverse go in different directions. Some predictions suggest that one of the many Metaverse projects will prevail and be considered a “Metaverse” in the future. In contrast, other predictions assume that the Metaverse will consist of a large number of interconnected and synchronized virtual platforms. Regardless of the future design, users can experience this new world through their avatars, interacting as they would in the real world. In the long run, with the development of technologies such as virtual reality and augmented reality, the boundaries between virtual worlds and virtual worlds will gradually blur.
Metaverse as the new playground for online gambling?｜PHL63
Common Metaverse projects include 3D representations of retail stores where people can try on clothes from the Metaverse and have them delivered to the real world. In this regard, the possibilities of gambling in the virtual universe are also very versatile. A casino/gambling parlor that offers all forms of gambling is conceivable. While moving through the virtual space, users can decide whether to communicate with others present or focus on games of chance. And all without leaving home. As technology advances, it can be expected that gaming experiences will rival, and at some point surpass, the “real world”. In addition, new betting items such as Metaverse Horse Racing or Metaverse Boxing can also be considered.
Compatibility with Philippine Regulations｜PHL63
Online gambling is heavily regulated in most jurisdictions, including the Philippines. The operator can only provide service on the previously specified domain. According to Philippine regulations, players are not allowed to play in different regions or with different operators at the same time.
Operators can now apply for a license. Applies to online poker, sports betting, and virtual slot machines, but excludes online casino table games such as blackjack and roulette, as well as live casino games that can be played over the Internet.
Gambling amounts are limited between operators, and various other player protection mechanisms apply. Furthermore, individual games are approved one by one by the authorities, who ensure that the games are not overly addictive. Current regulations do not allow new forms of metaverse gambling. All of this correspondingly limits the possibilities for gambling in the Metaverse. Also, it is not clear how age control (18+) will be guaranteed.
Another key limiting factor may be payment processing. Licensed operators can only accept Euros from players’ verified bank accounts. However, the most common payment method currently used in various Metaverse projects is an anonymous encrypted payment method, such as Bitcoin.
Bottom Line The Metaverse and Gambling｜PHL63
The Metaverse has the potential to revolutionize the internet as we know it. In the long run, it is possible to create an online parallel world that completely redefines the boundaries between the physical and digital worlds. In this new world, it is logical that there is also a great demand from players for gambling. Current gambling regulation in the Metaverse remains completely undefined in major European jurisdictions. There are no specific provisions or possibilities for obtaining a Metaverse gambling license or Metaverse horse racing for individual forms of Metaverse gambling. Current regulations in the Philippines target traditional online services offered through specific Internet domains. It remains to be seen when regulators deem it necessary to issue special licenses for Metaverse or develop separate rules for Metaverse. Lawmakers would do well not to allow a legal vacuum here. Initial steps are being taken in this regard. For example, the U.S. state of Wyoming passed a law allowing sports betting to accept “digital, encrypted and virtual currencies.” Whether further lawmakers will follow and create a framework for offering gambling in the Metaverse remains to be seen. Until then, developments in the Metaverse should be closely watched.
