The Association for Child Safety (ANCED) filed seven class actions against game developers and companies that host platforms for game downloading, seeking an injunction to ban loot boxes in online games. Although there is no regulation for loot boxes under Brazilian statutory legislation, the class Plaintiff alleges loot boxes are harmful for children and teenagers, as it may trigger gambling disorders and it is largely based in advertising for children, which is strictly regulated under…
On 30 September and 17 November 2020, the Italian Competition Authority (Autorità Garante della Concorrenza e del Mercato – AGCM) set new transparency standards for the offering of videogames containing in-game purchasing and loot boxes in two decisions. In short, the in-game purchase function allows players to obtain through real money several items (such as weapons, equipment, special moves, upgrades linked to the nature of the game, virtual coins, etc.), that may allow the upgrade…
The Hague’s district court has ruled that loot boxes qualify as a game of chance under the Dutch Betting and Gaming Act (BGA). The decisive factor in its assessment is the definition of a ‘prize’. For the BGA to apply, not only an element of chance is required, but the prize must represent ‘economic value’. Economic value is considered present if players can transfer the virtual goods involved between individual accounts. In addition, if such…
The Spanish minister of consumer protection, Alberto Garzón, has released in the past days several tweets stating that the Ministry of Health, Consumer Protection and Social Welfare is currently looking into different options to regulate loot boxes. Garzón has publicly expressed a critical view on this practice on several occasions, which he considers “Creates a compulsive consumption pattern” that directly affects minors. The Spanish gambling authority (Dirección General de Ordenación del Juego) already anticipated last…
As it is currently being reported in many German news outlets, the Federal Review Board for Media Harmful to Minors (Bundesprüfstelle für jugendgefährdende Medien, “BPjM”) has (upon application) opened proceedings to blacklist the mobile game Coin Master for its in-game monetization model which is allegedly targeted towards minors and would involve gambling-like elements. The game came under scrutiny in the wake of several adverse news articles in well-known German magazines and newspapers for its in-game…
In April this year, the Belgian Gaming Commission (BGC) announced the outcome of its investigation on loot boxes against three major companies from the gaming sector. The BGC found the investigated loot box mechanisms to be in violation with existing Belgian gambling laws by applying a very broad gambling definition (summary and comments here). The BGC also stated that “[g]iven the fact that only four games were examined, the problem might be bigger” and recommended a…
Since the loot box debate peaked again in April 2018 with regulatory enforcement action being announced or taken in South Korea, Belgium and the Netherlands, things have calmed down significantly. Nevertheless, several proceedings, investigations and legislative actions which were initiated during the first loot box peak in October/November 2017 are still ongoing, one of them being the investigation commenced by the French gambling regulator, the Autorité de regulation des jeux en ligne (“ARJEL”). For different reasons, the decision of the…
The worldwide loot box controversy continues. After the Dutch and Belgian Gambling Authorities announced enforcement action on loot boxes this week and the week before, a new loot box bill was introduced in Minnesota, USA this week. The bill joins other state level legislative efforts in the USA which were introduced since the global loot box debate peaked in the second half of 2017. This short summary describes the most notable political and regulatory reactions…