Loot Boxes May Break Gambling Laws

Game developers have been warned they face hefty fines and even prison sentences if they continue to offer some types of loot boxes. The warning follows Belgium’s Gaming Commision ruling that Counter Strike: Global Offensive, FIFA 18 and Overwatch are all breaching gambling laws.

The games must now remove the loot boxes for players in Belgium. If they don’t, the “operators” could get a five year prison sentence and a fine of €800,000 (just under $1 million.) The penalties could be doubled if the loot boxes are available to minors.

Exactly where the line lies with loot boxes being unlawful gambling in Belgium appears to be somewhat blurry, particularly when relying on automated translation of the government statement on the issue. It’s not an out-and-out ban as Star Wars Battlefront was ruled to be acceptable after some early adjustments to its loot box system.

Some reports have suggested the main issue is whether or not players have the opportunity to simply buy the relevant virtual items or if the only way is to be “lucky” with the loot box. Other interpretations have it that the problem is loot boxes being for sale (for real money) rather than acquired through gameplay.

The main point seems to be that it’s not so much a case of loot boxes being inherently illegal, but rather that in many cases they qualify as gambling. That means they have to comply with relevant gambling laws, which the video games in question aren’t doing. For example, it appears that breaches could include failing to prevent minors from gambling and not making the odds of particular outcomes clear.