Hosting a video game swap event might sound like a fun way for fans to trade games, consoles, or rare collectibles. But what seems like a harmless gathering could land you in serious legal trouble if you don’t understand the rules. You’re not just dealing with collectors and gamers-you’re stepping into a web of intellectual property law, state gambling regulations, and venue policies that can turn your event into a lawsuit waiting to happen.
Copyright and EULAs Are Not Just Fine Print
Every video game you own comes with an End User License Agreement (EULA). Most people skip reading it. Big mistake. These agreements almost always say you can only use the game for personal, non-commercial purposes. That means if you’re hosting a swap event where people bring games to trade, you’re technically violating the license terms-even if no money changes hands.
Game publishers own the copyright to the software, the characters, the music, the logos, and even the way the game looks. If you use any of that in your event’s branding-say, you put a Mario icon on your flyers or call it "Super Swap Fest"-you’re risking trademark infringement. Publishers don’t have to prove you made money. They just have to show you used their property without permission. And they will. Companies like Nintendo, Sony, and Electronic Arts have teams dedicated to tracking unauthorized use of their IP.
There’s no legal gray area here: if your event is open to the public, uses game branding, or even just encourages people to bring games to trade, you’re operating outside the scope of what the license allows. Without written permission from each publisher whose games are involved, you’re on shaky ground.
Is a Swap Event Gambling?
This is where things get even trickier. In many states, if something involves three elements-consideration (something of value given), chance, and a prize-it’s classified as gambling. A video game swap might not feel like gambling, but if you add a twist-like a raffle for a rare copy of "The Legend of Zelda: Ocarina of Time," or a "random draw" for a console-it could cross the line.
Take a real example: in 2023, a swap event in Illinois was shut down after a participant brought a sealed copy of "Super Mario 64" and offered it as a prize in a random drawing. State regulators ruled it met all three gambling criteria. Even though no entry fee was charged, the act of trading your own game to enter the draw counted as "consideration."
Some states are stricter than others. In Utah, any game-based prize event is illegal unless licensed. In Nevada, you might need a gaming license just to hand out a $20 gift card. But in Texas, casual swaps without prizes are generally fine. The problem? You can’t assume your state’s rules match your neighbor’s. You need to check your state’s gaming commission website-or better yet, talk to a lawyer who specializes in gaming law.
Venue Rules Can Override Your Plans
You might think the venue is just a space you rent. Not true. Places like convention centers, community centers, or even libraries have their own rules-and many explicitly ban gambling, unauthorized use of copyrighted material, or unlicensed commercial activity.
The Greater Philadelphia Expo Center, for example, has a clear policy: "No gambling or gaming tournaments involving real-money prizes are permitted." Even if your swap doesn’t involve cash, if you’re using game logos, distributing digital codes, or running a prize draw, you could be violating their terms. And if you get caught, you’ll be kicked out, banned, and possibly sued for breach of contract.
Many venues also require you to sign a waiver giving them the right to use photos or videos of attendees. That means if someone takes a picture of you holding a PlayStation 5 at your event, they can legally post it online-even if you didn’t give permission. You don’t get to control how your event is portrayed.
What About Digital Items and Virtual Currencies?
If your swap includes trading digital items-like skins, weapons, or NFTs from games like "Fortnite," "Valorant," or "Guild Wars 2"-you’re entering another legal minefield.
Some virtual items have real-world value. In 2024, the U.S. Financial Crimes Enforcement Network (FinCEN) issued guidance stating that if a game’s virtual currency can be exchanged for real money, it may be treated as a financial instrument. That means if your swap event involves trading items worth over $3,000 in real money, you might be required to comply with anti-money laundering rules under the Bank Secrecy Act.
Even if you don’t handle money, if someone trades a $500 skin for a rare game cartridge, you’re facilitating a transaction that could be seen as a financial exchange. Game publishers like Riot Games and Activision Blizzard have terms that ban resale or transfer of digital items. Violating those terms can lead to account bans, but if you’re running an event that encourages it, you could be seen as aiding and abetting the breach.
Consumer Protection and False Advertising
Don’t promise what you can’t deliver. If you advertise your event as "Trade Rare Games, Win a PS6," but you don’t have a PS6 to give away, you’re violating consumer protection laws. The Federal Trade Commission (FTC) has fined companies for misleading promotions-even in gaming communities.
And if you’re selling or trading used games, you need to be honest about their condition. Saying a game is "new sealed" when it’s been opened and played? That’s fraud. Even if you didn’t mean to deceive, the law doesn’t care about intent. If someone sues because they paid $200 for a game they thought was unopened, you’re on the hook.
What’s the Safest Way to Run a Swap?
You can still host a swap event-but you need to do it right. Here’s how:
- Don’t use game logos, names, or branding in your event name, posters, or social media. Call it "Retro Game Exchange" instead of "Nintendo Swap Fest."
- No prizes, no draws, no raffles. Stick to direct trades only. No random selection. No winner-takes-all.
- Check your venue’s policy before booking. Ask for a copy of their rules on intellectual property and gambling.
- Don’t trade digital items unless you’re 100% sure the publisher allows resale. Most don’t.
- Be honest about condition. If a game has scratches, say so. If a manual is missing, say so.
- Get legal advice from an attorney who’s handled video game IP cases. A one-hour consultation might cost $300-but it’s cheaper than a lawsuit.
The bottom line? Video games are not like books or CDs. You don’t own them the same way. You have a license to use them-and that license comes with heavy restrictions. Hosting a swap event without understanding those restrictions is like throwing a party in someone else’s house and pretending you’re the owner.
What Happens If You Get Sued?
If a publisher sends you a cease-and-desist letter, you’ll have to stop the event. Ignore it? They might sue. Damages can include legal fees, lost profits, and statutory fines of up to $150,000 per infringed work under U.S. copyright law. Even if you didn’t make money, you can still be liable.
And it’s not just publishers. Attendees can sue you too-if they get injured, if their game gets stolen, or if they feel misled. Liability insurance won’t cover IP violations. You’re on your own.
There’s no official checklist for hosting a legal video game swap. But there is one clear rule: if it feels like a business, it probably is one. And if it’s a business, you need permission.