And once again, the much-discussed loot boxes are causing a stir: WestLotto recently presented a regulatory proposal for such features. However, the video games industry lobby organisation "game" does not like this at all. It sees no reason for further action.

There is always a lot of fuss about the digital "treasure chests" in FIFA, Call of Duty, Fortnite, etc. They are seen by many as gambling-like features and have even been classified as "illegal" in some EU countries. Academics, politicians and industry experts often agree that loot boxes and their disproportionate use can have a significant negative impact, especially on children and young people.

The lobby organisation "game" has its own opinion on current developments. It recently reacted rather indignantly to WestLotto's move to regulate loot boxes. They see "no regulatory loopholes".

WestLotto's proposal for the regulation of loot boxes

In cooperation with gambling law expert Carsten Bringmann from Noerr, the lottery company WestLotto has drafted and published a paper with the aim of introducing a new Section 14b into the German Protection of Young Persons Act. It essentially lists six points on which the provision of loot boxes and gambling-like elements in video games in general should be governed by clear rules. We reported on this first concrete proposal for the regulation of loot boxes in Germany at the end of October.

Game sees "no regulatory gaps"

The managing director of the German video games industry lobby organisation, Felix Falk, spoke out shortly after the regulatory proposal was announced in Games Wirtschaft. Game and its members take a different view: the industry is already complying with the requirements, so there are no regulatory loopholes around loot boxes.

Felix Falk specifically says:

"In recent years, loot box offerings have often been adapted voluntarily and based on community feedback. This includes, for example, the display of probabilities for certain content or the display of all items contained in the loot box before purchase".

The association is also "irritated". It wonders (similar to GambleJoe in the last article on the debate) what WestLotto's initiative means. Basically, this is a foreign topic for this industry. Falk and Games Wirtschaft say that the gambling lobby has been attempting to profit from an irrelevant mix of video games and gambling for several years now.

Falk takes a clear stance here: "Video games have nothing in common with gambling offers and this also applies to the games industry as a whole. Just looking at the 500 or so companies in our association, in which not a single gambling company is represented, makes that clear."

In Austria, the legal situation surrounding loot boxes is already clearer

Our neighbours already have a clearer legal approach. There, loot boxes were classified as gambling by the courts in March 2023. The ruling, which stemmed from a refund claim brought by several players in connection with FIFA Loot Boxes, was upheld in the second instance. Sony was ultimately ordered to pay back 10,800 euros.

Loot boxes were classified by the Austrians as "gambling requiring a licence". According to the court, Sony did not have an appropriate gambling licence, which meant that the contracts between the games manufacturer and the plaintiffs were null and void. This means that there is a legally valid basis for reclaiming the payments made (similar to many online casino loss claims).

Football video game approved for ages 12 and up for the first time due to loot boxes

Due to loot boxes and the possibility of random in-game purchases and the associated increasing pressure to act, developer Electronic Arts has now come up with an absolute novelty: EA Sports FC 24 has only been approved by the Entertainment Software Self-Regulation Body (USK) for players aged 12 and over. This makes it the first football video game in Germany to have such a comparatively high age restriction. In previous decades, corresponding titles were always launched on the market without restrictions.

Conclusion

For economic reasons alone, it is not surprising that the WestLotto regulatory initiative displeases the lobby organisation game. Those responsible (as well as GambleJoe) are surprised that the lottery organisation is dealing with the issue. In addition, game issues a statement on the current handling. However, the conclusions drawn are not particularly strong. WestLotto has the better arguments here. Nevertheless, it seems that the last word has not yet been spoken. 

Image source: https://pixabay.com/de/illustrations/kommunikation-gespr%C3%A4ch-richtig-1082657/

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