NFT Collecting and Legal Risks: How to Play Safely in the Gray Area

When you purchase blind boxes, synthesize cards, or participate in limited-time flash sales on NFT platforms, are you aware that you might be crossing legal boundaries? This question not only troubles ordinary players but also draws the attention of the legal community. In multiple legal assessments of NFT platforms, we have found that many mainstream gameplay mechanisms bear striking similarities to traditional gambling activities—this is also a key reason why several NFT platforms have recently been shut down.

What Is Gambling Behavior? Understanding from a Legal Perspective

To determine whether NFT games violate the law, it is essential to clarify the legal definition of gambling. According to mainstream legal frameworks, gambling refers to activities where money or valuable items are wagered, and the outcome is determined by chance. This definition includes two critical elements:

First, there must be a substantial economic input. Whether it’s legal currency or digital assets, as long as they have exchange value, they are considered “money or valuable items.” This is the dividing line between gambling and ordinary gaming.

Second, the outcome depends on random events rather than deterministic results. If the result is preset, controllable, or inevitable, it does not fall under gambling and may even constitute fraud. Conversely, any activity where the outcome relies on unpredictable random factors is legally termed “gambling activity.”

Looking at the evolution of gambling games throughout history—from ancient dice games to medieval card games, and to modern online gambling—the core features have never changed: randomness + economic benefit = gambling activity. Many innovative gameplay features on NFT platforms are essentially rebranded versions of this ancient model.

Common “Problematic Gameplay” on NFT Platforms

Our examination of the current NFT ecosystem reveals at least seven mainstream mechanisms that are prone to legal controversy: airdrops, limited-time flash sales, lotteries, whitelist sales, blind boxes, card synthesis, and character upgrades. Among these, the blind box mechanism exhibits the strongest gambling characteristics.

The logic of blind boxes is: players purchase without knowing the specific contents, and after purchase, they randomly receive NFTs of varying quality. From a legal perspective, this is essentially a form of “probabilistic gambling”—each expenditure involves uncertain returns, and this uncertainty is at the heart of the gambling definition.

Card synthesis gameplay also carries risks. Players buy multiple NFTs to synthesize new cards, which may be of higher or lower quality than the originals. This “probabilistic profit” mechanism is very similar to traditional gambling, with the only difference being the medium—moving from chips to digital assets.

Additionally, a popular gameplay last year—Royal Battle Games—was also deemed by multiple legal teams as a disguised form of gambling due to its strong elements of random confrontation and economic incentives.

How Does Criminal Law Regulate This? The True Meaning of Article 303

Many participants of shut-down platforms are most concerned about: Will I be prosecuted criminally because of this?

The key lies in understanding the specific provisions of Criminal Law Article 303: Those who engage in gambling for profit, organize gambling, or make gambling their profession may face up to three years of fixed-term imprisonment, detention, or control, along with fines. There are two critical elements often overlooked:

First, the standard for “gathering” (聚众). Users playing NFT games at home via computers or smartphones clearly do not meet the definition of “gathering.” Gathering implies offline congregation of people, which is a practical challenge in the internet age under criminal law.

Second, and most importantly, “making gambling a profession.” This refers not just to frequent participation but to making it your sole or primary source of income. In other words, if you have a regular job and livelihood, and only indulge in NFT gaming for entertainment and occasional profit, the law generally does not recognize you as a “habitual gambler.”

Compared to this, those who treat NFT gaming as full-time work, invest large sums daily, and derive their main income from game earnings are more likely to be considered in violation of this provision.

The Actual Risk Levels for Ordinary Players

Based on analyses of platforms that have been recently investigated, we can categorize NFT players’ legal risks into three levels:

High risk: Platform operators. If you own or manage an NFT platform that designs these random mechanisms for profit, you bear the heaviest responsibility.

Medium risk: Professional players. Those who treat NFT gaming as their main income source, investing large amounts daily. While criminal liability may be limited, they face risks of administrative penalties (such as under the “Public Security Administration Punishments Law”).

Low risk: Casual players. Ordinary users with formal employment, viewing NFTs as entertainment, and with limited investments. Their legal risk is relatively small but still warrants caution regarding administrative regulation.

How to Participate Reasonably in the NFT Ecosystem

Our practical and clear recommendations are:

First, control your investments. Like any entertainment activity, set a reasonable spending limit and strictly adhere to it. View NFT gaming as “entertainment expenses” rather than an “investment channel.”

Second, diversify your income sources. Ensure you have stable formal employment or multiple income streams. Never rely solely on NFT gaming as your economic support.

Third, choose platforms wisely. Favor platforms that reduce randomness, strengthen community governance, and maintain transparent, open rules.

Fourth, keep records and backups. Save all transaction records and platform rule explanations, which can serve as strong evidence in any potential dispute.

Conclusion

NFT platforms’ evolution closely mirrors that of historical gambling games—from technological innovation to risk accumulation, from regulatory blind spots to strict oversight. As an ordinary player, you can participate and profit in this ecosystem, but the key is to do so rationally and with restraint.

Platforms will continue to evolve, and regulations will become more comprehensive, but the core logic of law remains unchanged: randomness + economic benefit = a gray area requiring caution. Knowing where the boundaries are will help you participate in this market more safely and sustainably over the long term.