Normal gain: A
Extra gain from crime: B
Cost incurred if caught with crime: C
Perceived probability of getting caught: f

Now we can calculate the reward:
Gain for not committing the crime (CLEAN): A
Gain for committing the crime (DIRTY): (1-f)(A+B)+f(A+B-C)
which can be rewritten as: A + B - f(A+B) + f(A+B) - f C
Or simply: A + B - f C

Now, for an ideal deterrent, the cost should generally be greater than the benefit, so CLEAN > DIRTY, or CLEAN - DIRTY > 0: A - (A + B - f C) = f C - B > 0

Then again, the people making the laws don't really care about game theory or morals or math like this, but rather, who greases their palms with the green lubricant... So why did I even bother? As shown above, if a real game theorist seized control of congress then we would end up with a lot of dummies in police cars due to lack of funds. :)

I agree, but there must be something involved with the whole game-server thing that we don't know about; maybe legit copies of the game have a hidden crypto key that must be transferred?