u/Haunting-Platform-23

Hi! Software developer po ako (freelance) and recently may nag-approach sa akin na client na gusto mag-build ng skill-based gaming community platform. Bago kami mag-proceed, gusto ko muna mag-gather ng legal and technical insights.

Baguhan pa lang din ako sa freelancing, so gusto ko ring maintindihan yung legal side ng mga ganitong projects. Coming from a corporate background kasi, sanay lang ako mag-focus sa development — yung legal and business aspects, medyo bago pa sa akin.

Ang application ay magiging isang mediator/facilitator lang. Ganito ang flow:

-Mag-to-top up ang users ng real money para makabili ng in-app currency ng app (similar sa pagbili ng Diamonds sa Mobile Legends — example lang)

-Pwedeng mag-challenge ang dalawang players sa isa't isa at gamitin ang kanilang in-app currency bilang "prize pot"

-Ang mananalo ay HINDI makakatanggap ng real money — in-game items or currency ng ibang laro ang prize (halimbawa, Mobile Legends Diamonds or skins)

-Ang app ang mag-fa-facilitate ng transaction, hahawak ng points habang nag-lalaban, at siya ring magbibigay ng prize sa mananalo

-Kukuha ng maliit na cut ang app bilang service fee dahil siya ang nagsisilbing mediator

So basically, hindi nagbibigay ng real money ang app, virtual items or third-party game currency lang ang prizes.

So ang tanogns

- Mafe-fall pa rin ba sa gambling laws ang ganitong business model kahit walang real money ang prize?

-Ano ba talaga ang legal grounds para ma-classify ang isang bagay bilang "gambling" vs "skill-based competition"?

-Bilang developers ng platform, mananagot ba kami kung abusuhin ng client ang application beyond its intended purpose?

-May paraan ba para legally maprotektahan ang sarili namin as developers through contracts, terms of service, or disclaimers?

-May nakapag-build na ba ng ganito dito? Paano ninyo hinawakan ang legal side?

I'm a software developer (freelance) and was recently approached by a client who wants to build a skill-based gaming community platform. I want to get some legal and technical insights before we proceed.

Also, as someone who is fairly new to freelancing, I'd love to understand the legal side of things as well. Coming from a corporate background, I'm used to just focusing on development, the legal and business aspects are still something I'm learning.

Here's the business model:

The application acts purely as a **mediator/facilitator**. Here's the flow:

1. Users top up real money to purchase the app's own in-app currency (similar to how you buy Diamonds in Mobile Legends - example lang)

2. Two players can challenge each other and use their in-app currency as the "prize pot"

3. The winner does NOT receive real money — they receive **in-game items or currency of another game** (for example, Mobile Legends Diamonds or skins)

4. The app facilitates the transaction, holds the points during the match, and distributes the prize to the winner

5. The app takes a small cut as a service fee for being the mediator

So essentially the app never gives out real money, only virtual items or third party game currency as prizes.

My questions are:

1. Does this business model still fall under gambling laws even if no real money is given as a prize?

2. What are the legal grounds that define something as "gambling" vs "skill-based competition"?

3. As the developers who built the platform, are we liable if the client misuses the application beyond its intended purpose?

4. Is there a way to legally protect ourselves as developers through contracts, terms of service, or disclaimers?

5. Has anyone built something similar and how did you handle the legal side?