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Belgium and the Netherlands look into gambling within video games.

Are loot boxes considered gambling and in need of regulatory action? Authorities in Belgium and the Netherlands are delving into this matter.

SymClub
May 23, 2024
2 min read
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The new Battlefront 2 was particularly harshly criticized. The developers have therefore...
The new Battlefront 2 was particularly harshly criticized. The developers have therefore deactivated the loot boxes. (

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Belgium and the Netherlands look into gambling within video games.

The controversy surrounding the integration of gambling features in contemporary video games refuses to die down. Latest additions to the mix are Belgium and the Netherlands, which are now tackling the subject of loot boxes. The potential implications for the legal framework in the EU could be profound if the contents are labeled as gambling.

The primary focus of the investigations is on recent releases such as Star Wars: Battlefront 2 by Electronic Arts and Overwatch by Blizzard Entertainment. These games feature a type of virtual products known as loot boxes, which can be bought and their contents are determined by chance. Loot boxes are a primary revenue generator for game developers as they allow the core game to be offered at a low price or even free, thus expanding the audience. The majority of profits come from the additional content. Certain highly sought-after items can only be acquired through loot boxes and they are quite rare, thereby convincing players to purchase numerous such boxes, which can result in substantial costs frequently surpassing the price of a full-priced game. Some producers even bundle full-priced games with loot boxes in an attempt to generate ongoing revenue. This revenue model has been highly disputed by gamers.

These mechanisms have ignited controversy in several countries before. Since you can't buy the desired items but are left to chance, critics contend that it's a game of chance. Hence, the games ought to be tagged as such and be marketed to adults. In the USA, Canada, and Germany, authorities and legalists have targeted the issue. Despite disparate definitions of gambling, the jurisdictions arrived at identical verdicts. Because you always get something, a total loss is impossible, hence it is not a game of chance (USA). With no prospect of winning money, it's not a game of chance (Germany). Loot boxes are more akin to collectible pictures or raffles of insignificant items and likely don't require any special regulation.

Not gambling but still hazardous?

In spite of the conclusion that loot boxes are not a classic game of chance, there are still concerns about this approach to monetizing games, notably in Germany. Though it's not a conventional gambling practice, the mechanisms are too similar that there could be an addictive risk for teenagers. The youth protection board wishes to be empowered to delve deeper into the issue. So far, the USK has not been authorized to take these elements into account in its ratings.

The involvement of the authorities in the matter highlights the escalating difficulties of combining video games with gambling elements. However, there is still a dearth of legal classification of the practice and therefore lack of control mechanisms. A joint resolution by European nations could offer a template for the entire union. Nonetheless, no unequivocal categorizations of loot boxes are envisaged in Belgium and the Netherlands. Being a specific investigation into particular games, decisions are likely to be made on a case-by-case basis. At most, the manufacturers might face penalties like fines or a sale ban.

Nevertheless, such a sanction seems improbable thus far; in both titles, the loot boxes do not determine the progress of the game, instead merely improve the visuals. Battlefront 2's creators have made a concession to this criticism, disabling all microtransactions temporarily. A comprehensive and critical appraisal of the topic by the judiciary, however, appears prudent for safeguarding minors' interests.

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Source: www.onlinecasinosdeutschland.com

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