IMGL Magazine November 2022

Loot box regulation

from Overwatch and Heroes of the Storm . 16 In the Netherlands, as examined above, the Division’s recent EA ruling adds another layer of complexity for game publishers. WHAT NEXT FOR LOOT BOX REGULATIONS? Looking forward, new bills and motions have been submitted in Spain and the Netherlands to impose more stringent regulations on loot boxes and gacha mechanics. In the Netherlands, a motion was submitted to the House of Representatives calling for a ban on loot boxes due to concerns about gambling and their adverse impact on children being manipulating into engaging in microtransactions. 17 The motion is currently supported by six political parties and is expected to pass through the Senate, in which case loot boxes will be classified as gambling, meaning game developers would have to remove in-game loot boxes in the Netherlands. Details of the Spanish Bill have been referenced already within these pages. The Bill is expected to come into force on January 2, 2024 once it has been approved by the Council of Ministers. 18 Although there are currently no uniform regulations governing loot boxes and gacha mechanics across the EU, the latest developments in Spain and the Netherlands

may signal a globally coordinated movement towards tighter regulations in the future. Furthermore, 20 consumer groups from 18 European countries have started a coordinated effort to call for heavier regulation of loot boxes. 19 As the gaming industry awaits such upcoming legislative developments, game publishers should tread carefully in structuring new releases. In the aftermath of long-standing criticism and regulatory scrutiny, EA began revealing the probabilities of obtaining different items in its FUT packs and even started providing previews of the specific contents of those packs before players decide whether to purchase them or not. 20 Moreover, a feature called FIFA Playtime now enables players or their parents to track and impose limits on how much time and money they spend in the game. Likewise, Epic Games has been promoting policies towards improving the transparency of loot boxes in its games, disclosing the odds of obtaining items and showing players items they would obtain before opening paid loot llamas in games like Fortnite and Rocket League . 21 It remains to be seen whether this marks an industry shift towards remedying the opaque nature of loot boxes and imposing self-regulating mechanisms for players in order to enhance the sustainability of games in the face of heightened regulatory scrutiny.

Bo Hyun Kim is a third-year student studying US and international law at Handong International Law School in Pohang, South Korea. Email: jbouno@gmail.com

insertcoin/2019/01/29/ea-surrenders-in-belgian-fifa-ultimate-team-loot-box-fight-raising-potential-red-flags/. 16 Blizzard. Heroes of the Storm and Overwatch Loot Boxes Unavailable for Belgium. https://eu.battle.net/support/it/ article/187466. 17 Bontenbal, et al. (2022). Motie van het lid Bontenbal c.s. over loot boxes in videogames ook in Nederland verbieden. Tweede Kamer (House of Representatives (Netherlands)). https://www.tweedekamer.nl/kamerstukken/moties/de- tail?id=2022Z13703&did=2022D28235. 18 El Ministerio de Consumo (Ministry of Consumer Affairs (Spain)) (2022). Anteproyecto de Ley por el que se regulan los mecanismos aleatorios de recompensa asociados a productos de software interactivo de ocio. https://www. consumo.gob.es/sites/consumo.gob.es/files/BORRADOR%20APL%20Y%20MAIN%20MECANISMOS%20ALEATO- RIOS%20RECOMPENSA%20010722.pdf. 19 Meyer, D. (2022 June 1). In-game loot boxes come under fire from European consumer groups, who are calling for ‘serious regulatory oversight.’ Fortune. https://fortune.com/2022/05/31/gaming-loot-boxes-fifa-shadow-legends-diab- lo-immortal-consumer-protection-gambling/. 20 Good, O. (2021 June 19). FIFA Ultimate Team now shows pack contents before you buy. Polygon. https://www. polygon.com/22541541/fifa-ultimate-team-preview-pack-changes-loot-boxes-rules-ea-sports. 21 Valentine, R. (2019 August 8). Epic Games commits to loot box transparency across portfolio. Games Industry.biz. https://www.gamesindustry.biz/epic-games-commits-to-loot-box-transparency-across-portfolio.

IMGL Magazine • November 2022 • 41

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