Loot box State of Play 2023: A global update on regulation

Legal Loot boxes are still here with us in 2023, and some countries are finally catching up with regulation. The approach taken in the past few years has generally been to determine whether different types of loot boxes legally constitute ‘gambling’ in different countries and, if so, then seeking to regulate them using pre-existing laws. However, more recently, countries have explored other potential options, such as enforcing consumer protection law; requiring that specific information be disclosed; or demanding action from age rating organisations. In this article, I provide an update on the various policies I discussed last year in Loot Box State of Play 2022 and also summarise new developments. This piece highlights the key takeaways from my academic writing about loot box regulation globally, which is available here. More technical and legal details (including source documents in their original language) are available at that link for those interested in delving deeper. When I speak of ‘loot boxes,’ I very broadly mean any in-game purchases with randomised elements that are bought with real-world money, or with premium in-game currency that is bought with real-world money (so-called ‘paid loot boxes’). Basically, the player does not know exactly what they will get as part of a purchase involving real-world money. This includes social casino games, for example. Belgium: The ban continues Belgium continues to maintain its ‘ban’ on loot boxes because the country’s gambling law has a uniquely wide definition. This means that loot boxes cannot be legally offered for sale to either children or adults. We know that the regulator has not enforced the law due to lacking resources, but companies, such as Roblox Corporation, have more recently taken compliance action. Even if the law is unenforced, companies would be well-advised not to breach it. Major hardware platforms, storefronts, and publishers would naturally demand compliance. Even if the Belgian law is unenforced, companies would be well-advised not to breach it The Netherlands: A ban was proposed but is uncertain As discussed last year, the highest Dutch administrative court decided that loot boxes generally cannot be regulated under gambling law. Since then, policymakers have found this to be unsatisfactory and proposed changing the law to emulate the Belgian position, and I received official confirmation from the then Dutch government in July 2023 that they were pursuing a loot box ban (and even intended to advocate for this to be done at an EU-level). However, a new government is in the process of being elected, so we cannot be sure what might happen in the Netherlands in the future. Austria: Certain loot boxes may be illegal gambling A number of civil court decisions have considered whether loot boxes whose rewards can be transferred to other players (and thus possess real-world monetary value) would constitute illegal gambling. If so, players would be entitled to have the money they spent on loot boxes refunded to them. Unfortunately, Austrian judgments from the lower courts are not published, but I have obtained
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