The legality of skill gaming differs by state in the United States. Skill gaming is not expressly prohibited by federal law. The relevant federal statute, the Unlawful Internet Gambling Enforcement Act (UIGEA), defines “bet or wager” as “the staking or risking of something of value by any person on the outcome of a contest of others, a sporting event, or a game subject to chance, upon an agreement or understanding that the person or another person will receive something of value in the event of a certain outcome.”

This definition excludes wagering on the outcome of a skill game in which the bettor is a participant. As a result, regulation of skill gaming is left to individual governments. In truth, many states leave this practice uncontrolled, however, some do limit skill gaming by statute or case law. Even in states where there is a stated restriction, the answers remain hazy.

For example, wagering on any skill contest is illegal in Florida. However, courts have ruled that the restriction does not apply to participating in skill-based games as long as the prize is not made up of entry fees, the prize does not vary based on the entry fees collected, the operator does not compete for the prize, and the prize is announced ahead of time. The player is not “wagering” on the outcome in such cases. Other states limit wagering on skill games while allowing skill-based tournaments. A head-to-head bet on the outcome of a game is normally forbidden in those states, although paying to enter a tournament with pre-announced prizes is legal.

To make matters even more complicated, courts across the country utilize different methods to assess whether a game is one of skill or chance. The “Dominant Factor” test determines if the outcome of the game is dictated more by the relative competence of the participants than by chance. The main debate is whether chance or skill is more important in choosing the victor of the contest or game. The “Material Element” test examines whether chance plays a substantial influence in determining the game’s outcome. It makes little difference if skill plays a considerable, or even dominant, part in determining the outcome under this variation.

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If chance plays a significant role in the game, it is considered gambling. The most stringent test is known as the “Any Chance” test, which determines whether chance plays any part in deciding the winner at all. If any element of chance influences the outcome, the game is termed one of chance. While these are the most widely employed tests by courts, other states have not agreed on a test or have developed their own unique examination of the skill element.

Given the many tests stated above, a skill game may be considered illegal gambling in one state while remaining legal and unregulated in another. This, combined with various views of what constitutes “wagering,” makes it difficult to determine which states allow or prohibit skill games. Acceptance of bets or wagers by the operator is also prohibited by federal law if a certain gaming activity might be considered gambling.

States also approach different sorts of skill games differently. Even if skill gaming is generally permitted, some skill games may be forbidden. Some states, for example, have established legislation specifically prohibiting wagering on “fantasy sports” teams. Land-based skill gaming devices must be licensed by a state’s gaming authorities in other jurisdictions. Furthermore, several states associate skill-based gaming devices with slot machines and strictly control their ownership or use. As a result, the specific skill game must be reviewed in accordance with the existing statutes in each state.

Skill gaming operators frequently seek game certification from a gaming laboratory, which examines the skill and chance factors in light of the relevant tests. A certification of this type is useful in establishing how a court would rule on whether a certain game is one of skill rather than chance. Gaming laboratories will evaluate the game’s operational aspects and provide a scientific analysis of the importance of skill against chance in determining the winner. Given the severe criminal consequences associated with running an illegal gambling operation, it is necessary to thoroughly assess this critical game component. A certification can be important if an operator is ever asked to defend the game’s legality.

Some jurisdictions that consider games of skill gambling have been discovered based on preliminary research.

• Skill gaming is a game based on physical and mental skill.
• Common games of skill include contract bridge, card games, mahjong, chess, and backgammon.
• The distinction between skill and chance in some countries has legal implications. In Germany, if money is involved as bets, for example, poker, then it is considered gambling. In these cases, the games of skill is allowed in casinos only. However, if the game is for monetary prizes, then it is allowed.
• In New York, games such as poker is ruled a game of skill and not chance, even though money is placed on the game as bets.
• Currently, skill games with prizes can be done in 80% of the world and as many as 38 states in the US. States such as Arizona, Connecticut, Arkansas, Florida, Delaware, Louisiana, Maryland, South Carolina, Montana, Tennessee and South Dakota require compliance with applicable laws in order to collect a monetary prize.
• In Indiana and Maine if playing cards is involved, real prizes cannot be awarded.
• Malta in 2017, was issuing licenses for skill games
• In Italy, they make a distinction between games of luck and those of skill.
• In Switzerland, games of skill and of chance are two different areas. Games of chance are only played in casinos.

As may be seen from the foregoing, a definitive list of states where skill gaming is legal is elusive. State legislation is constantly enacted, revised, and repealed. Courts issue fresh rulings on these problems at an unpredictability. If you ask three lawyers for such a list, you may receive three distinct ones. In the United States, the only reliable way to assess the legality of a certain skill game is to get qualified gaming counsel to offer a legal judgment. Operators can confidently identify areas where their games can be safely offered with this information in hand.