Gambling
The Ongoing Debate on Lootboxes in Video Games
The longstanding controversy surrounding lootboxes in video games has taken a new turn. WestLotto, Germany’s state-run gambling provider, has recently proposed a legislative draft aimed at regulating “gambling-like elements” in video games. The draft was prepared by the German law firm Noerr. The rationale behind this move is rooted in the fact that the monopoly on gambling rests with the state. Consequently, any other providers would require licenses to operate in the market – licenses that major players like EA SPORTS currently do not possess.
Austria Sets a Precedent
At first glance, WestLotto’s move might seem like an industry leader’s attempt to safeguard its revenues. However, a similar legal stance has already proven successful in Austria. Earlier in March, an Austrian court ruled that lootboxes, based on the same premise, were subject to gambling licensing. This decision, which was recently upheld in a higher court, led to Electronic Arts and Sony having to reimburse several players who had purchased lootboxes.
Meanwhile, in Germany, the USK (Entertainment Software Self-Regulation Body) made a groundbreaking decision by rating FC 24, EA SPORTS’ latest football simulation game, suitable only for those aged 12 and above. A significant reason cited was the “pressure to act” due to “in-game purchases.”
Axel Weber, the spokesperson for LottoWest, believes that this is still not enough. Speaking to “GamesWirtschaft”, he stated,
“Leading addiction researchers are clear in their assessment: At 12 years old, the legislator still has special child and youth protection requirements to meet.”
A Call for “Social Responsibility”
Weber emphasizes that there’s a lack of proportionality when adult gambling has clear restrictions, yet these limitations do not apply to children and teenagers. He advocates for uniform rules for both gambling and video games with lootboxes. While he clarifies that WestLotto is not “waging a war against lootboxes,” Weber underscores a clear expectation:
“We demand that industry stakeholders recognize that with these product offerings, there’s not just money to be made, but also a significant social responsibility.”
This responsibility includes identifying risks and attempting to minimize them.
The Gaming Industry’s Response
Felix Falk, the Managing Director of “game”, the lobby association for the German games industry, believes that the industry is already meeting these demands. He asserts that there are “no regulatory gaps concerning lootboxes.” Over the past few years, lootbox offers have been voluntarily adjusted based on community feedback. This includes disclosing the probabilities of obtaining specific content or revealing all items in a lootbox before purchase.
Falk expresses his surprise at WestLotto’s initiative, accusing them of venturing into “a completely foreign subject area” for the gaming industry. According to him, the gambling industry’s efforts to blur the lines between gaming and gambling have been evident for years, with the intention of profiting from this conflation.
However, Falk concludes firmly,
“Games have nothing in common with gambling offers, and the same applies to the gaming industry as a whole. A mere glance at the approximately 500 companies in our association, none of which are gambling companies, makes this clear.”
Image: WestLotto-Director Christiane Jansen (Source: WestLotto)
