A Guide to European Gaming Loot Box Laws

If you are a gamer, you will know that gaming loot boxes are in-game features that let players use their real money, or gamble items in the game, to try and win something of potentially higher value. The player will not know what is in the loot box.

What makes this problematic is its relation to gambling. So, if you intend to use loot boxes in your own game, or perhaps want to purchase some of your own, it’s important that you understand European gaming loot box laws.

Why are loot boxes problematic?

Unfortunately, the process behind obtaining a loot box tends to reflect problem gambling statuses that can be found in casino games and online slot machines. This is made worse by the fact that real-life money is being used to obtain these loot boxes.

Although they may not initially look like they are a form of gambling, loot boxes can become exploitative if the player becomes addicted to paying for these boxes in hopes of winning a unique online product, such as a virtual weapon, vehicle, skin or outfit. Unfortunately, by incorporating these types of gambling devices, game designers can come off as predatory.

While loot boxes are not yet being regulated, recently 20 consumer groups from around 18 European countries have been asking for extra measures or regulations to be placed on loot boxes. The reason behind this request is the fact that loot boxes use aggressive marketing tactics to push sales.

Gaming Loot Box Laws

As already stated, there are no regulations yet when it comes to loot boxes, however you should understand the timeline of some of the papers and investigations that have already passed:

Netherlands

• April 2018: The Dutch Gaming Authority stated that endorsing the sale of loot boxes, and item transfers from these boxes, are illegal

Belgium

• April 2018: After studying loot box systems in FIFA 18, Counter-Strike, Star Wars and Overwatch, it was decided that they were games of chance. Therefore, they were going to be subject to gambling laws

France

• June 2018: ARJEL created a report that stated that loot boxes are not entirely seen as gambling, as the items that are won do not actually have financial value, even if they are traded

Germany

• February 2018: The Commission for Youth Media Protection undertook research that decided that loot boxes do appear to have features of gambling markets
• March 2018: It was decided that loot boxes potentially violate direct advertisement appeals that could target children
• March 2021: Revisions to the Youth Protection Act were made to create a warning about the inclusion of loot boxes

Sweden

• February 2019: The Swedish Minister for Public Administration said that he wanted the authorities to look at loot boxes to see if legislation needed to be changed to help with consumer protection, hoping to classify loot boxes as a lottery in the same year
• May 2019: The Swedish Minister for Public Administration decided that the Swedish Consumer Agency needed to review customer protection in relation to loot boxes. This also focused on how well children were being protected

Poland

• February 2019: The Polish Ministry of Finance stated that loot boxes were not classified as gambling in line with Polish laws. However, they may be classified as gambling under different jurisdictions
• Present: It has been decided, in relation to Polish law, that the definition of gambling does not extend to loot boxes

Changes to the legislation

To combat the effect of loot boxes, it has been decided that an industry-led approach is the best way forward. This includes using parental controls, including refund policies and spending limits, receiving more gaming information about loot box deployment, making complaint systems, and creating more research on the impact of loot boxes. Ultimately, it is up to the player to decide whether or not they want to play a game that uses loot boxes.

What do you think about loot boxes?

Although loot boxes are not regulated, you will need to think carefully about whether or not you want to include them. It’s understandable that you will want to include features that will bring in more traffic to your game.

However, you may want to consider alternative methods to encourage new gamers to give your game a shot. For instance, SuperScale offer various mobile game growth services or you could try thinking of seasonal events to entertain your gamers. Either way, the choice is up to you, so take your time to consider your options.

Disclaimer: This article contains sponsored marketing content. It is intended for promotional purposes and should not be considered as an endorsement or recommendation by our website. Readers are encouraged to conduct their own research and exercise their own judgment before making any decisions based on the information provided in this article.