Without all three of these elements, a competition that rewards real prizes is not gambling. Are Skill-based Tournaments Gambling? ​Ĭash-based tournaments in games of skill are not considered gambling because the generally accepted definition of gambling involves three specific things: (1) the award of a prize, (2) paid-in consideration (meaning entrants pay to compete) and (3) an outcome determined on the basis of chance. Games powered by Skillz take the clear distinction as being games of skill - and not games of chance - a difference which makes Skillz tournaments legal in the majority of the United States. Skillz is a platform that advances this trend, enabling skill-based multiplayer tournaments on mobile devices while offering gamers the ability to compete for real prizes. Today, games of skill are available on most major media sites like AOL, MSN, and Yahoo, and are complemented by an emerging electronic sports (eSports) industry that lets professional gamers compete in popular video games with real money at stake. From classic board games to major sports tournaments, games of skill have long offered participants a chance to compete based on one’s ability. Skill-based gaming has a well-established legal, social and commercial history.