The debate over the classification of video game loot boxes as a form of gambling continues to simmer, with no global consensus in sight. However, the Netherlands is poised to make a bold move by pushing for a complete ban on loot boxes and microtransactions, and they hope to rally the entire European Union (EU) to follow suit.
Loot box games–where do they belong?
In the realm of video games, loot boxes are virtual items that can be purchased and opened to reveal a randomized selection of additional virtual items or loot.
Last year, a Dutch court judge deemed microtransactions relatively harmless, asserting that since they hold no real-world value beyond the games themselves, they cannot be considered games of chance.
However, recent information suggests that the Dutch government is shifting gears and aiming for a comprehensive ban on loot boxes. They seek to galvanize the EU into taking a unified stance on the matter.
The UK and Belgium have already adopted strict positions against loot boxes and other forms of in-game microtransactions. The UK has warned game developers to exercise caution to avoid potential new regulations, while Belgium has gone so far as to implement an outright ban.
In Austria, a court recently ruled that Sony was liable in a legal battle involving FIFA Ultimate Team (FUT) packs, a feature that allows gamers to purchase in-game players to strengthen their teams. The court determined that the randomized nature of the packs qualifies as a form of gambling.
On the other hand, Canada and some other countries have taken a different approach. A Canadian judge ruled in March that microtransactions do not constitute gambling since they lack real-world value.
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Netherlands is close to making a decision
The Netherlands, thus far, has remained somewhat indecisive on the matter, but that could soon change. Leon Y. Xiao, a Ph.D. Fellow at the IT University of Copenhagen, confirmed that the Dutch government is working on new legislation to address loot boxes. His findings were based on a publication by the Dutch central government, and he sought clarification, which he shared on Twitter.
The government’s Public Information Service confirmed that a ban on loot boxes is indeed in the works. However, the progress of the legislation and its ultimate success remain uncertain.
The call for a Dutch loot box ban gained traction when Micky Adriaansens, the Dutch Minister of Economic Affairs and Climate Policy, launched an anti-loot box campaign. Subsequently, six political parties presented a proposal in the legislature, advocating for a ban on the sale and distribution of loot boxes and other microtransactions.
Gaining widespread support for the initiative has been challenging due to diverging opinions on microtransactions. Nevertheless, the mere mention of “gambling” has become taboo, and that alone is enough to garner backing.
René Otto, a gaming law attorney, conducted an assessment of the ban’s potential consequences for the international gaming sector. He believes that the Dutch government’s decision could serve as a catalyst for other countries grappling with similar issues, potentially triggering significant transformations in the financial operations of gambling companies worldwide.
Adriaansens emphasized the urgency of implementing stricter regulations, citing the need for enhanced consumer protection. She hopes the EU will join forces and establish a ban across the region, and it appears that EU leaders are already inclined to support her cause. The Dutch government’s pursuit of a loot box ban could pave the way for a major shift in the gaming industry.
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