Disclosure – This blog is intended to discuss the many legal issues surrounding videogames.  The opinions expressed in this blog are my own and not necessarily a reflection of the views of Gearbox Software, LLC.  No legal advice is intended from this blog – should you feel that you have received legal advice from reading this blog, please check with your own legal counsel.

Here, I plan to delve into the many legal and business issues surrounding videogames.   Additionally, a central theme of this blog is to provide support to the burgeoning video gaming industry that is gaining legitimacy on all fronts.

In December, a Wisconsin lawmaker, State Senator Jon Erpenbach (D), took the bold and foolish stand to propose "a special one-percent sales tax for video games and game consoles," whereby "the surcharge would be used to fund juvenile criminal rehabilitation programs." Choosing a "cause and effect" analysis, Senator Erpenbach seems to have reached the nonsensical conclusion that juvenile crimes are simply caused by videogames. Obviously, using a cause and effect analysis cannot be true.

Does Senator Erpenbach consider videogames on the same level of "morally questionable products" requiring a "sin tax," such as alcohol or cigarettes?  The reason that politicians most often give for imposing the so-called sin taxes is to stop unhealthy behavior.  However, sin taxes do generate revenue, and we should question the sincerity of politicians who say their real priority is stopping the behavior they’re taxing.  

Rev. Robert A. Sirico, president and co-founder of the Acton Institute for the Study of Religion and Liberty, agreed. "The search for government revenue in fiscally tight times tempts legislators to raise revenue by imposing unusually high excise taxes on cigarettes, liquor, gambling, and so on. This type of charge appeals to voters who view it as a way of discouraging consumption of certain objectionable products. Yet the temptation to impose sin taxes is one that should be resisted for economic and moral reasons."  I am not certain how videogames could be lumped into the same category as "cigarettes, liquor, gambling, etc."  Or, does Senator Erpenbach believe that juveniles are the only ones playing videogames (meaning, only kids play videogames, so let the kids pay for the results of their crimes)?  A recent news report by a major US broadcasting corporation stated that 25% of the people playing videogames today are being played by people over the age of 55.  Fifty-five... not my definition of a juvenile.
 
Finally, a recent FBI report stated that violent crime was down again this year – maintaining a decade-long trend.  Currently, violent crimes are at a lower percentage per capita than they were in 1994!  At the same time, the videogame industry has seen an exponential growth. 

Additionally, an ABI research report states that the videogame industry has grown at a sustained level of 95% for the past decade and this growth rate is projected into the next five years.  Michael Wolf, principal analyst of broadband and multimedia research, states that "Gaming has become a mass-market entertainment industry on a par with TV, movies and music.  The ability to play music and media from powerful consoles and handhelds will drive overall industry growth as consumers begin to view gaming devices as one-stop-shop entertainment platforms."

Therefore, the argument that Senator Erpenbach is making is akin to the politicians who tried to block rock and roll as a style of music in the 1950s.  It seems that Senator Erpenbach knows that there is a need for juvenile rehabilitation facilities, a sentiment that I can totally agree with; however, as creative as Senator Erpenbach is to find a way to pay for the rehabilitation facilities... taxing videogames and consoles is not the answer. 

Game On!

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