Is it legal to give real cash back in games that use fake money/points?

[Latinneo]

Think of any game were you can earn virtual money or points (farmville, mafia, etc).
Now imagine that at any point in time the application allows you to redeem the points (or fake money) for a fraction of real cash (ie: 1000 points = $1, 10,000 points = $10, and so on).

I want to know if doing that is legal and if so, will Apple allow an app like that?

 

[Just Blue]

Think of any game were you can earn virtual money or points (farmville, mafia, etc).
Now imagine that at any point in time the application allows you to redeem the points (or fake money) for a fraction of real cash (ie: 1000 points = $1, 10,000 points = $10, and so on).

I want to know if doing that is legal and if so, will Apple allow an app like that?

You should consult a Criminal Attorney before trying this scam.

 

[Latinneo]

You should consult a Criminal Attorney before trying this scam.

Why do you think it is a scam?

The idea is to use the marketing budget as cash back instead of spending it in the usual marketing channels. I think doing that benefits both the company and the consumer.

 

[swalsh411]

So this is the reverse of the typical "pay real world money for in-game points" thing?

One issue I see is that players don't really "own" their points. If you read the ToS to these games you don't own bupkiss. I wouldn't be suprised if you found all the in-game points that you "bought" taken away from you because the players never had a right to sell them.

 

[Latinneo]

So this is the reverse of the typical "pay real world money for in-game points" thing?

One issue I see is that players don't really "own" their points. If you read the ToS to these games you don't own bupkiss. I wouldn't be suprised if you found all the in-game points that you "bought" taken away from you because the players never had a right to sell them.

No, actually it is the same.

The difference in this -yet to be released- game is that the total points in the game remains constant for the total number of players. For one player to increase his/her points another player needs to lose. It is not like the points can be created out of the blue. With that being said, you can see that it is easy to return some of the profit as cask back.

 

[Just Blue]

No, actually it is the same.

The difference in this -yet to be released- game is that the total points in the game remains constant for the total number of players. For one player to increase his/her points another player needs to lose. It is not like the points can be created out of the blue. With that being said, you can see that it is easy to return some of the profit as cask back.

CONSULT WITH AN Attorney.

 

[QueenofEngland]

I know, slightly old post. But I have to correct something. It's not always a scam to allow people to redeem points earned for cash. There are some people right now who've made literally real-world fortunes by earning points in games. Some Second Life players are real-life millionaires. So sometimes it's legit.

Where the OP needs to consult an attorney is that the players all receive the same amount to start and to earn more, someone else has to lose, which sounds like gambling since they'd have to wager something with monetary value.

Also not a chance in hell Apple would allow an app like this. That's straight from someone I asked on the inside, and since I'm married to the insider, I trust his word. Apple's not going to be stuck on the hook verifying ages for gambling, or be stuck in the middle if someone gets pissed that they lost points worth real money.