Mia Mason v. Machine Zone, Inc.
2017 U.S. App. LEXIS 4766
| 4th Cir. | 2017Background
- Plaintiff Mia Mason, a Maryland resident, filed a Rule 23(b)(3) class action against Machine Zone over a Game of War in-game "virtual casino" wheel that players spin to win virtual prizes.
- Game of War is free to download; players may buy virtual gold for real money and convert gold into nonredeemable virtual chips used to spin the wheel (one initial free spin, thereafter 5,000 chips per spin).
- Virtual prizes include resources, chips, gold, or chances to play other in‑game chance events; outcomes are controlled by software odds and are not skill-based.
- Mason alleged she spent over $100 buying virtual gold to obtain chips, and that spinning the wheel constituted gambling under Maryland’s Loss Recovery Statute (Md. Code Ann., Crim. Law § 12-110), seeking recovery of alleged gambling losses.
- The district court dismissed under Rule 12(b)(6), finding Mason did not "lose money" under the statute; the Fourth Circuit affirmed, concluding virtual items not redeemable for cash are not "money" under the statute and Mason failed to plead an essential element.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Mason "lost money" under Md. Code Ann., Crim. Law § 12-110 by spinning the virtual wheel | Mason: She spent real money to buy virtual gold to obtain chips; prizes won were worth less than money spent, so she "lost money" and can recover the difference | Machine Zone: Money was paid only to buy virtual gold; spins used nonredeemable chips and prizes are virtual, so no money was won or lost by Machine Zone or players in the casino | Held: No. Virtual gold/chips/prizes not redeemable for cash are not "money" under the statute; therefore Mason did not "lose money" and failed to state a claim |
Key Cases Cited
- Belmora LLC v. Bayer Consumer Care AG, 819 F.3d 697 (4th Cir.) (standard of review for Rule 12(b)(6))
- F.A.C.E. Trading, Inc. v. Todd, 903 A.2d 348 (Md.) (Maryland gambling statutes construed to effectuate legislative purpose)
- Gaither v. Cate, 144 A. 239 (Md.) (interpret statutes to give validity to word and spirit of law)
- Cates v. State, 320 A.2d 75 (Md. Ct. Spec. App.) (legislative purpose of loss recovery statute to discourage illegal gambling by enabling disgorgement)
- Stoddard v. State, 911 A.2d 1245 (Md.) (interpret unambiguous statutory language according to plain meaning)
- Kramer v. Bally's Park Place, Inc., 535 A.2d 466 (Md.) (Loss Recovery Statute provides civil remedy to recover money lost)
- Harbourt v. PPE Casino Resorts Md., LLC, 820 F.3d 655 (4th Cir.) (pleading facts and consideration of integral documents on Rule 12(b)(6) review)
- Goines v. Valley Cmty. Servs. Bd., 822 F.3d 159 (4th Cir.) (consideration of documents integral to the complaint on motion to dismiss)
