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In June , the Department of DCMS began requesting evidence from game companies related to loot boxes as part of a further investigation.
In February , the Isle of Man 's Gambling Supervision Commission updated their regulations to explicitly define virtual items as being "money's worth" even when not convertible into cash, explicitly bringing loot boxes under statutory regulation.
In April , the Dutch Gaming Authority issued a legal opinion that games which both sell loot boxes and permit the "transfer" of yielded items are illegal.
In its report "Study into loot boxes: A treasure or a burden? It concluded that while the loot-box systems in the six remaining games did not meet the threshold for legal action, they "nevertheless foster[ed] the development of addiction" and were "at odds" with the authority's objectives.
The authority gave the developers of the four unnamed games eight weeks to correct their loot-box system or face fines and potential bans on sales of the games in the Netherlands.
The authority's investigation was opened following a parliamentary question tabled by MP Michiel van Nispen in November Announcing the investigation, the regulator warned of the "possible dangers" of "addiction and large financial expenses".
Following its April announcement, the Gaming Authority began to solicit other European Union countries to help harmonize their ruling on loot boxes among the Union.
In April , Psyonix disabled the ability for players in the Netherlands and Belgium to open loot crates with keys in Rocket League due to government regulations.
The Commission stated that for loot boxes in Overwatch , the action of opening a loot box is a game of chance to receive items of some perceived value to players, and there is no means to directly purchase in-game currency to obtain a specific item, while games like FIFA 18 merge reality and fantasy by using real-life athletes to promote the loot-box system.
In response to the announcement, several companies made their games with loot boxes unavailable to customers in Belgium with no financial recourse to customers who bought or paid for merchandise in the games:.
Electronic Arts' games FIFA 18 and FIFA 19 were also called out by the Commission, however, EA did not make any modifications to these games; EA had previously stated in May that it did not believe the implementation of loot boxes in their games constituted gambling.
Durain's letter stated his concerns that "some observers point to a convergence of the video game world and practices specific to gambling" in his request.
ARJEL noted that items from loot boxes do not normally have monetary value, and even when they are traded through skin gambling, the publisher of such games do not participate in that arena, thus distancing loot boxes from other forms of gambling.
The commission remained open on hearing complaints towards loot boxes on specific games, though have no legal authority to enact any fines or penalties should they be found to be against law.
While Coin Master does not use loot boxes, the game uses a gameplay mechanism that requires the player to play a virtual slot machine to advance in the game, with the opportunity to use items purchased with real-world funds to influence or bypass the slot machine to achieve desirable results, a model adapted by many other games and one that can encourage or trivialize excessive gambling.
If Coin Master had been blacklisted the BPjM may have opened the door for other games with similar monetization routes to be reviewed.
Also in February , Ardalan Shekarabi , the Swedish Minister for Public Administration , stated that he was "ready to ask [the] authorities to take a closer look at the phenomenon of loot boxes and see if there is a need to change legislation in order to strengthen consumer protection.
In February Polish Ministry of Finance issued a statement saying that loot boxes are not gambling in the light of the Polish law, although it noted that they may well constitute gambling in other jurisdictions.
Polish law defines gambling very specifically, and the current definition is not applicable to loot boxes.
A July report prepared on behalf of the European Parliament Committee on the Internal Market and Consumer Protection IMCP , "Loot boxes in online games and their effect on consumers, in particular young consumers", was one of the first reports to reframe loot boxes as a matter of consumer protection rather than a gambling concern.
The report included recommendations such as restrictions on design features that encourage the addictive loop, better disclosure from publishers to players on loot box odds and the risks of playing such games, parental controls, and consumer testing with governmental oversight.
There are presently no laws in the United States targeting loot boxes, though the renewed interest in the issues with skin gambling from mid highlighted several concerns with using virtual items for gambling purposes.
However, with more technically-literate court judges that may consider "value" more than just a financial value, alongside new perception of how much value in-game items can have resulting from the skin gambling situation, could change how the framework in the United States would classify loot boxes.
Hawaii state representatives Chris Lee and Sean Quinlan issued a statement in November taking a stance against loot boxes. I realized just how bad it has gotten.
We as consumers kept accepting that, kept buying those games. Does the ESRB have to consider a new rating that could deal with gambling and addictive mechanics?
Rather than passing legislation that could have a slippery slope of harmful effects on the industry, Quinlan stated he would prefer to see the industry self-regulate, either by excluding gambling-like mechanics in games marketed to children, or have the industry rate games with these mechanics for more mature audiences which would affect how they would be sold and marketed.
Minnesota introduced a bill in April that would prohibit sale of games with loot-box systems to children under 18 years of age, and require specific labelling on these games to alert consumers to the loot-box system.
In early May , Republican Senator Josh Hawley of Missouri announced that he intends to introduce a bill named "The Protecting Children from Abusive Games Act" that would ban loot boxes and pay-to-win microtransactions in "games played by minors", using similar qualifications to determine this as previously defined in the Children's Online Privacy Protection Act.
The Federal Trade Commission would be responsible for enforcing the bill by making judgements and leveling fines for games that fail to take these steps.
In September , members from the gambling commissions from fifteen European nations, including Austria, the Czech Republic, France, Ireland, Latvia, the Netherlands, Norway, Poland, Portugal, Spain, UK, as well as the state of Washington from the United States, announced a collaborative effort to "address the risks created by the blurring of lines between gaming and gambling".
While the group's specific focus will be on skin gambling sites, they will be looking to "ensure that features within games, such as loot boxes, do not constitute gambling under national laws".
Video game industry bodies have generally stated that they cannot regulate loot boxes as gambling unless the law of their countries specify what counts as gambling within games.
PEGI has stated that a game having a loot-box system will not automatically require its "gambling content" descriptor.
Parliamentary questions in the United Kingdom revealed in March that PEGI is "considering the possibility of placing [in-game purchase] notifications on boxed products".
For example, if a player has poured certain amount of money in gacha, the player is given a chance to choose whatever reward they want from the gacha pool freely.
The association recommended a 50, yen ceiling. The Japan Online Game Association JOGA , which now serves as the Japanese video game industry's self-regulatory body in lieu of JSGA, also issued similar guidelines with further specifications such as "listing all available rewards from the lootbox and payout rates of all rewards" and "listing changes to all available rewards and payout rates upon software revision, specifically during festive campaign with a deadline".
While the new guideline does not recommend any payment ceiling, it recommends to display the expected maximum bet in order to guarantee obtaining the item if it exceeds 50, yen.
UKIE , the video game industry trade organization for the United Kingdom, asserted its stance that loot boxes do not constitute gambling and are "already covered by and fully compliant with existing relevant UK regulations".
ESRB does not consider loot boxes as a form of gambling, and will not rate such games with their "Real Gambling" content descriptions.
ESRB considers that loot boxes are equivalent to collectible card game booster packs, and that the player is always receiving something of value with opening a loot-box purchase, even if it is not something the player desires.
The Board further stated that games that are labelled with "Real Gambling" will likely be then rated "AO" Adults Only , to comply with gambling laws; retailers typically do not stock such games, and would thus harm a publisher.
As an example, they found that parents were more worried about children spending money in-game and not any gambling aspects, and thus did not include loot boxes as one of its content descriptions, though would like to add them in the future should legislation or other industry standards establish gambling as a critical issue.
The Entertainment Software Association , the parent organization of the ESRB, asserted loot boxes are not a form of gambling, stressing that they are a voluntary and optional aspect in these games.
Electronic Arts' CEO Andrew Wilson stated in May that they will continue to include loot boxes in their games, and "While we forbid the transfer of items of in-the-game currency outside, we're also actively seeking to eliminate that where it's going on in an illegal environment, and we're working with regulators in various jurisdictions to achieve that".
While other publishers have acquiesced to governmental concerns about loot boxes, Electronic Arts has been generally steadfast in that they do not believe their implementation of loot boxes is a form of gambling.
In statements made at hearings with the UK Digital, Culture, Media, and Sport Committee, EA representatives compared loot boxes to "surprise mechanics" that one would find with Kinder Surprise eggs, and believe that their implementation of loot boxes are "quite ethical and quite fun, quite enjoyable to people".
In the wake of the criticism over Star Wars Battlefront II , financial analysts suggested that the video game industry will need to develop self-regulating principles to better handle monetization and loot-box schemes to avoid government intervention into the industry.
She asked the nominees if "that children being addicted to gaming - and activities like loot boxes that might make them more susceptible to addiction - is a problem that merits attention?
In response to Hassan's letter, the ESRB announced in February that it would require any rated game that offers any type of in-game purchase with real-world funds, encompassing loot boxes, would be required to be labeled as such.
ESRB stated the labeling was primarily meant to help parents watch for games for their children, and because of the brevity of space they have on retail packaging, did not opt to required publishers to identify the specific form of microtransaction.
However, the board still asserted that they still do not believe loot boxes themselves are a form of gambling. Hassan called the ESRB's decision a "step forward", she still remained concerned of "the ESRB's skepticism regarding the potentially addictive nature of loot boxes and microtransactions in video games", and stated "I will work with all relevant stakeholders to continue oversight on these issues and ensure that meaningful improvements are made to increase transparency and consumer protections.
During a November Congressional hearing over problems with Cambridge Analytica 's data leak and associated with Facebook and Google , Joseph Simons , chairman of the Federal Trade Commission FTC , promised to Congress that the FTC will investigate loot boxes, considering the potential market value of microtransactions.
The FTC held a public hearing on loot boxes on August 7, , addressing industry representative and reviewing public comments submitted prior to the meeting.
These efforts are expected to be in place before the end of , according to the ESA. Apple implemented changes to the iOS App Store in December , requiring developers that publish games to the Store that include monetised loot boxes or other similar mechanisms that provide random items in exchange for real-world funds, to publish the odds of items that can be received from these mechanisms prior to the player spending funds on the game.
In November , the International Game Developers Association IGDA urged the video game industry to take action on loot boxes before governments step in to regulate them.
IDGA identified three areas for the industry to focus on: commit to not marketing loot-box mechanics to youth, disclose the odds of receiving items in loot boxes, and educate parents on in-game parental controls.
In February , review aggregator OpenCritic began incorporating details about games that use loot boxes into its summary pages for games. In the academic literature, King and Delfabbro proposed twenty-four "social responsibility" measures that could be implemented by video game companies to prevent or reduce overspending on loot boxes.
In February , two separate class-action lawsuits were filed in France against Electronic Arts over the Ultimate Team part of the FIFA games asserting it is equivalent to unregulated gambling.
The suits also content that the FIFA games lack any parental controls to limit spending, which, combined with the pay-to-win nature of Ultimate Team, encourage underage gambling, directly referencing the decisions from Belgium and the Netherlands.
A class-action lawsuit filed in California in June against Apple asserted that through the games using loot boxes mechanics offered by Apple's App Store, Apple "engages in predatory practices enticing consumers, including children to engage in gambling and similar addictive conduct in violation of this and other laws designed to protect consumers and to prohibit such practices".
The lawsuit asserts that with these apps, Apple allows their devices to become unauthorized gambling devices which are illegal under California's code.
As a result of the heightened criticism and regulation, some studios began to remove or replace loot boxes in their games. Phoenix Labs opted to remove their equivalent of loot boxes from Dauntless , instead replacing the system with the ability to directly purchase customization items players want through in-game currency or real-world funds allowing them to achieve monetization for the game.
From Wikipedia, the free encyclopedia. For the subscription box company, see Loot Crate. Redeemable virtual item as video game prizes.
Further information: Industry self-regulation. Retrieved August 13, In a lot of ways, that's the same psychological mechanisms that are going on with random loot drops in other games like your Diablos of the world Retrieved October 9, Blizzard Shop.
Retrieved May 17, Gambling Commission. March PC Gamer. Ars Technica. Retrieved September 29, Blizzard Watch. Team Fortress 2 blog. Retrieved October 23, The Japan Times.
Retrieved February 16, The Verge. Inven Global in Korean. Retrieved June 15, Archived from the original on November 14, Retrieved November 14, Retrieved November 24, Counter-Strike Blog.
August 13, Retrieved November 5, US Gamer. Retrieved November 22, Retrieved December 21, Retrieved October 10, Retrieved October 12, Retrieved October 30, National Post.
Retrieved December 18, Retrieved December 27, Retrieved July 17, Rock Paper Shotgun. Retrieved November 9, Retrieved July 5, Rock, Paper, Shotgun.
Retrieved October 14, The Washington Post. Retrieved November 18, June 18, Nature Human Behaviour.
Retrieved June 19, The New York Times. Retrieved April 25, Retrieved May 10, Retrieved October 13, Retrieved October 25, Retrieved November 15, Retrieved May 1, Retrieved November 20, Retrieved January 23, Retrieved July 18, We find out".
Retrieved October 11, Retrieved October 18, Game Informer. Retrieved October 20, Retrieved April 3, Retrieved November 17, Retrieved October 17, Retrieved April 26, Retrieved November 21, Retrieved November 28, Retrieved December 13, Heroes Never Die.
Retrieved November 23, PC World. The Daily Telegraph. The Wall Street Journal. Archived from the original on March 16, Retrieved March 16, November 24, Retrieved January 30, Retrieved April 16, Department for Digital, Culture, Media and Sport.
September 9, Retrieved September 11, Retrieved July 28, October 26, Retrieved October 27, May 9, Retrieved May 8, February 1, Gaming Law Review.
April 9, GameMeca in Korean. Retrieved September 16, March 28, Retrieved April 9, Republic of Singapore.
October 7, The Straits Times. Archived from the original on August 13, The Guardian. Retrieved August 27, Kotaku Australia.
November 22, March 14, Retrieved April 6, Retrieved June 28, Retrieved September 17, Retrieved November 27, Commonwealth of Australia.
February Retrieved March 5, Retrieved December 11, The Sunday Times. Retrieved September 14, BBC Radio 4. November 17, Retrieved December 14, Retrieved October 16, Retrieved October 26, UK Parliament.
March 13, November 21, Retrieved July 2, Retrieved July 23, Retrieved October 22, Retrieved January 18, Retrieved June 8, House of Lords.
July 2, Isle of Man Gambling Supervision Commission. February 17, Dutch Gaming Authority. April 10, Archived from the original PDF on April 20, Retrieved April 19, Retrieved June 20, Subscribe now to start receiving monthly boxes packed full of exciting exclusive Japanese candy.
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