Crystal betting feature for GA

"yohann269;c-1718688" wrote:

"DuneSeaFarmer;c-1718634" wrote:

"capifico22;d-189843" wrote:
Once matchmaking is determined, you propose a bet to your opponent, say 1,000 crystals. Your opponent can accept, counter, or decline. It then gets taken out of your stockpiles and put in escrow at the time of the bet (so no welshing). Winner take all.

It would become a capital gain and thus taxable here in the US. Online games dance on the razors edge as is, with loot boxes being compared to gambling.

how can you have capital gains on a fake currency? Lots of games have wagering included in them. remember there are lots of sources to earn crystals without buying them. so if you wager an in game currency that you spent nothing on how can you possibly get to capital gains?

If you could sell the virtual currency for $ you would have a capital gain based on the increase in value and ordinary income based on your crystal income. Or if you could barter outside of the game with it for food or other items, you'd have to report it. The IRS is really cracking down on oeople not reporting bit coin transactions.

But while this is similar, without being able to use crystals outside the game, the case for it being taxable would be thin. Though with you being able to buy crystals, you could put a value on them and make the case that you receive an increase in value and the irs would consider that income. But the case for that is thin and probably wouldn't hold up in court.