Mixed Games
Despite modifications made by the manufacturer, an Ontario Superior Court judge has ruled that GotSkill? gaming machines still constitute gambling. The decision is a significant development in a long-standing legal dispute over whether the machines are games of skill or games of chance under Canadian law.
Despite adjustments made by the manufacturer, Justice Shaun S. Nakatsuru concluded that the fundamental mechanics of the game remained unchanged in how they used chance to encourage continued play.
Data presented during the case showed that Ontario GotSkill? players in 2024 played for an average of 27 minutes. They completed an average of 122.8 game rounds per session, spending on average $15 to $25 in credits.
In a judgment made in the last week of August, Justice Nakatsurudetermined that the updated GotSkill? machines still operate as games of mixed skill and chance, rather than just games of skill. The ruling comes as the Alcohol and Gaming Commission of Ontario (AGCO) continues efforts to shut down similar products in the area.
Legal Definitions
Justice Nakatsuru wrote that GotSkill? remained a mixed game of chance and skill despite the modifications made to the design. He stated that the game still involves significant elements of chance because it encourages players to spend money in the hope of recovering a value later in the game.
Canadian law considers games of skill as legal and not considered gambling. While games of chance fall under gambling regulations. The AGCO defines casino games, raffles, and bingo as games of chance. Sport is considered a game of skill. Mixed skill and chance games such as Blackjack are also considered gambling.
The court dismissed an application from SBG-Skill Based Games Inc. (SBG), the manufacturer of GotSkill? machines, that sought to overturn legal findings categorising them as mixed games.
The latest ruling, from Justice Nakatsuru, comes from a legal battle started in 2018 when the Ontario Superior Court found GotSkill? games to be neither a game of chance nor a mixed game. The AGCO appealed the decision, successfully reversing the ruling in 2019 via the Ontario Court of Appeal. It was found that the machines included a “systematic resort to chance.” SBG applied for a judicial review, which led to the current ruling.
In the years that followed the 2019 appeal, SBG made changes to the game’s design in an attempt to meet the legal standard for a game of skill. These included allowing players to view five “potential next wins” instead of the one previously permitted. They also enabled skill tasks on tickets with no monetary value.
Justice Nakatsuru acknowledged that while the extent of the uncertainty is reduced, it has not been eliminated. He added: “Colloquially speaking, the bait may be different, but the lure of a big or bigger win based upon luck is still used.”
The AGCO welcomed the decision and said that they will be conducting a thorough review while reiterating their commitment to addressing risks posed to Ontarians by illegal gambling.
The ruling follows other crackdowns, including the revocation of lottery seller registrations for retailers offering Prime Skill Games machines.
