The UK's Gambling Act of 2005 is set to see its last remaining provisions come into force this September, and it could mean that MMOs will have to change the way they do things.

According to GamesIndustry.biz, the Act will regulate the online gambling companies that will be permitted to operate from within the UK for the first time-- but since it defines "gambling" as "a game of chance for a prize," MMOs will have to obtain Gambling Commission operators' licenses to be able to offer virtual goods and currency to players, since those have actual monetary worth.

Further, MMO gaming does qualify as a "game of chance," since the Act applies that definition to "any game which involves elements of both chance and skill, or where superlative skill can eliminate chance. The definition of 'prize' includes cash prizes, products and virtual prizes which can be exchanged for money."

"This is something all current operators of these games, and those looking to enter this market, should seriously consider now," said Alex Chapman of Campbell Hooper-- adding that his firm is already working to obtain licenses for clients, and is in continued discussion with the Gambling Commission over the MMO issue.

[via GamesIndustry.biz]

The Times Online U.K. is reporting that the British government may soon step in to start regulating virtual worlds more closely, citing "causes for concern" that include identity theft, money laundering, copyright violation and exploitation of children.

At the Virtual Worlds Forum in London, Lord Triesman, a minister at the Department For Innovation, Universities and Skills, said that virtual worlds present "sharp challenges" in terms of moderating and controlling illegal or anti-social activities, though he allowed that they are "one of the most exciting technological developments in recent years."

He encouraged companies that develop and operate virtual worlds to take an active role in regulation, but indicated that government involvement would at some point be inevitable. Lord Triesman did not, however, comment on specific laws that may be in the pipeline, and he sidestepped the controversial taxation issue, calling it a matter for the Treasury.

[Via Times Online UK]

Law firm Pullsbury has announced it has formed a "multidisciplinary legal team" specifically focused on representing clients involved in the virtual worlds industry. The team is to bring together attorneys versed in potentially tricky legal areas such as IP, regulation,, privacy, tax and other practices, "in response to the greater frequency and complexity of clients' virtual worlds and video game cases."

Attorneys in the team recently worked with Activision Blizzard, in a copyright infringement case asserting its right to control which programs can access World of Warcraft. Other clients of Pillsbury include Areae, which offers the Metaplace virtual worlds platform.

Historically, Pillsbury has worked on the "cutting edge" of techonogy for over 50 years, helping draft the 1952 Patent Act, incorporating Intel in 1968, trademarking the first dot-com site in 1994 and facilitating a then record $2.2 billion public offering for Network Solutions in 2000. The firm sees this new legal team as the next step forward in this strategy due to the growth of the virtual world industry.

"While marketers and technologists are eager to tap virtual worlds' branding and revenue potential, executives and in-house counsel need to approach these new media applications with knowledge of the regulatory framework and consider risk management issues," ," said James G. Gatto, the head of Pillsbury's Intellectual Property practice, "This requires determining the scope of liability, writing effective terms of use agreements establishing users' permissions and limitations, implementing policies aimed at keeping mature content from minors, if necessary, and ensuring that software and systems powering their virtual presence does not misappropriate others' technology and patents."