Judgement in Austria: FIFA loot boxes classified as illegal gambling
In late Summer 2022 there were already reports in the German media about the 17-year-old apprentice from Carinthia who had made a complaint against the PlayStation group Sony. The claimant’s lawyer sees an infringement against the Austrian Gambling Legislation in the player selection in the FIFA loot boxes which is generated randomly after money is transferred. Several complaints followed. The case was heard at the end of February 2023.
The young man from Carinthia, who started all this, had invested 400 Euro in the loot boxes of the football game FIFA and did not get the football line-ups which he would have liked. His lawyer from Vienna defined the system as games of chance. Besides this he saw the same system as daylight robbery, since the customer’s freedom of choice was limited, and this fact was exploited by the provider.
At first the case only took place in Carinthia. However, it soon transpired that the hearing would create a stir beyond the borders of the population of 7000. Several claimants came along. Actually, extensive consequences for game producers and distributors which rely on loot boxes or comparable business models are currently foreseeable:
On the 26th. February the responsible court had classified the controversial FIFA-Feature as “illegal games of chance”. A reimbursement was ordered. The judgement is however not legally binding.
What are FIFA loot boxes exactly?
FIFA loot boxes are digital card packs, which contain virtual football players. The customers can upgrade the line-up of their own team with these footballers. Through the loot boxes players can for example place play Benzema in the midfield or use Neuer as a goaler and enjoy decisive advantages. Thus, this feature is popular with the fans of the game.
The exact content of the pack is not announced before one buys. In fact, it is coincidence which determines which player will boost the buyer’s team. Loot boxes are not found only on the Sony PlayStation, but also on the Microsoft-Xbox, the Nintendo-Switch and PC-Platforms.
The judgement
The verdict has been given but is not legally binding. Sony can make an appeal and it will probably do so.
The judgement sees some procedures in the use of loot boxes that are relevant for the current legal situation of games of chance in Austria. The result of the contents of the acquired packs depends on games of chance. They depict a “financial assets service in accordance with the Austrian Regulations for Games of chance”.
What is important here is that the digital footballers can be traded on the secondary market, which makes it possible to make a profit. Sony has no concession for games of chance and thus there is no contract between the company and the plaintiffs.
Why is the complaint against Sony and not against Electronic Arts?
During the trial there were several discussions why it was Sony that was being accused. After all the game was supplied by the developer Electronic Arts. The explanation is relatively simple: the legally relevant contract of sales materialises in the PlayStation Store and not between the game developer and the customer.
Loot boxes have long been criticised
The FIFA-developer Electronic Arts has for years had to fight back the criticism about its loot boxes. There has long been a discussion whether this function is a Pay2Win action or an action of games of chance. In Belgium the card packs have been deemed as illegal some time ago. The complaint of the Carinthian is however a novelty.
Although child welfare organisations, specialist journals and other entities have regularly spoken about the possible dangers, the producer has till now managed to get out of the tight spot with some astute argumentation. The arguments of Electronic Arts were that it is more a question of “skill, capability and experience” or loot boxes“ are “as harmless as surprise eggs“
Lawyers were constantly receiving complaints and being asked for advice
As expected, the case of the 17-year-old from Carinthia brought more complaints. In December 2022 five persons submitted further claims against Sony and Electronic Arts. According to the Austrian Media, a 26-year-old had invested around 11,000 Euro for loot boxes in several FIFA games and he wanted his money back.
Till the end of February 2023, a four-digit number of FIFA players had turned to legal entities. There are rumours of average claims of 800 Euro. In one case the claim is even of 85,000 Euro.
Conclusion
Austrian legal experts spoke about this case as a “thunderbolt against the whole video game industry” or as “setting the trend for the way with loot boxes“. Actually there can eventually be a drastic change in the concept of these player packs if there is a change in legalisation”.
Before this even happens, Sony may however put forward some arguments in its favour, because the cases which were arose in Austria will definitely not be the only ones. Most probably the group will face a wave of complaints. The loot boxes will in the future probably hardly have any winning potential. Sony and Electronic Arts will want to avoid this at all costs.
Have you perhaps had negative experiences with loot boxes? What is your opinion about the current judgement?
Image source: https://www.pexels.com/de-de/foto/person-halt-game-pad-1174746/
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