In an article authored for Law360 about considerations for metaverse gaming operators and participants as the development of digital assets like cryptocurrencies and non-fungible tokens allow for real-world economic value without the legal and regulatory structure, partner Katherine Guarino Baker and associate Kelly Hogan said what now seems like a game will result in more regulatory scrutiny and legal disputes.

“Casino and sports gaming is one of the most heavily regulated industries in the U.S. The regulation is primarily at the state level. Some mistakenly believe the metaverse is insulated from real life legal restrictions,” they wrote.

“To the contrary, any gaming and wagering activity, which constitutes a game of chance involving the risk of something of value and a prize, that is being offered to U.S. citizens in the metaverse on an unregulated basis is likely to draw the attention of regulators.”

Baker developed Nelson Mullins’ gaming practice and represents businesses and individuals in a wide variety of complex civil litigation at the trial and appellate levels. A primary focus of her practice is assisting casino gaming, sports betting, and fantasy sports operators, vendors, and entrepreneurs to navigate the state and federal commercial and tribal gaming landscape, including leveraging FinTech solutions.

Hogan is a member of the firm’s litigation group and concentrates her practice on defending and advising clients in internal and governmental investigations, enforcement actions, and white-collar crime.