This month, the Securities Exchange Commission (SEC) fined Forcerank, makers of a fantasy stock market trading game, $50K in connection with their game. The fine was specifically for failing to file a registration statement and also for failing to sell their contracts through the national securities exchange. While Forcerank's game was offered as a game, the SEC explained that the offering of a financial reward and entry fee for games where players are essentially playing the stock market invokes various federal laws put in place to protect investors.
Forcerank's mobile phone games asked players to predict the performance of ten different securities. Forcerank kept 10 percent of all entry fees. Players were rewarded with points and some even won cash. Forcerank was also hoping to collect data about market expectations that could be sold to other investment firms.