Loot Box Legislation 2024: A New Chapter in Global Gaming Regulations
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We are evaluating another analysis on how various nations are overseeing loot boxes. There may be, in fact, less concern over the core inquiry of whether or not loot boxes are classified as a form of gambling. Unless your paid loot boxes offer random rewards that can consequently be exchanged among players, I typically would not pay much attention (except in Belgium where all paid loot boxes are prohibited).
However, several nations have established different requirements that must now be individually adhered to, primarily concerning:
- Revealing the existence of loot boxes in product descriptions and promotions
- Disclosing loot box probabilities in specified manners
- Implementing minimum age ratings for games featuring loot boxes.
These regulations arise either from consumer protection legislation or newly crafted specific laws.
You can catch up on previously established regulations by reviewing the 2022 and 2023 installments of this series. Unless stated otherwise, the rules remain unchanged.
Unless your paid loot boxes provide random rewards that can indeed be exchanged among players, I typically would not pay much attention
For those with a more legal and technical perspective, additional significant details are available in Section 2.2 of my PhD thesis on loot box regulation. Source material in its original language (which should ultimately be relied upon) has been compiled in a repository for your review.
As before, when I mention ‘loot boxes,’ I broadly refer to any in-game purchases with randomized components that can be acquired with real-world money or with premium in-game currency that is purchased using real-world funds (these are termed ‘paid loot boxes’). Generally, the player is unaware of precisely what they might randomly obtain as part of a purchase involving real-world currency. This covers gacha systems and social casino games, for example.
Belgium: Prohibition on loot boxes
Some companies remain in non-compliance with Belgian gambling regulations that prohibit loot boxes. Recently, Pokémon Unite opted to comply by restricting in-game purchases for Belgian players and will ultimately withdraw services from the country.
The Belgian gambling authority is struggling to actively enforce the ban and has even recently acknowledged that the ban is excessive. Nevertheless, it may at any time decide to take legal action against companies for unlawfully promoting loot boxes. Please adhere to the law by either removing your games with loot boxes from that nation or launching an alternate version without paid loot boxes.
Furthermore, marketing of games featuring loot boxes should not target Belgian consumers (there is generally a way to exclude them from being targeted, such as in social media advertisements). This not only ensures proper compliance but also prevents expenditures on marketing aimed at Belgian players who cannot (or are unlikely to) play your games that contain loot boxes.
The Netherlands: Allowed but must adhere to consumer protection regulations
After a March 2022 court ruling, all paid loot boxes (including those that offer rewards that can consequently be transferred between players) are legal in the Netherlands. Nevertheless, companies have been overly cautious by avoiding offering loot boxes to Dutch players since then, which is unnecessary.
It is lawful to market loot boxes in the Netherlands, and I would be remiss not to communicate this accurately. Additionally, the previous Dutch Government sought to ban loot boxes to effectively reverse the court decision. Nonetheless, a new Government is now in office, and it has assured me in September 2024 that it has no such intentions.
However, being allowed to market loot boxes does not imply that no other regulations apply. In-game purchase offerings must comply with overarching consumer protection laws. The Dutch consumer protection authority has published relevant guidelines, which companies are expected to follow.
The authority recently fined Epic Games over €1.1 million for various violations of consumer protection laws relating to in-game purchases in Fortnite (an appeal is currently pending). This indicates that the national authority is ready to act, and loot box-related enforcements may soon be anticipated in the Netherlands and beyond.
EU and beyond: Consumer protection regulatory requirements
Regarding the consumer protection regulatory requirements most pertinent to loot boxes, two key points should be emphasized. Firstly, all advertising for video games must clarify whether the game includes loot boxes, if applicable. Secondly, disclosures regarding loot box probabilities are mandatory.
Comply with [Belgian] regulations by either removing your games with loot boxes or releasing versions without paid loot boxes
Both of these have been explicitly interpreted as requirements by the European Commission and communicated accordingly to the European online gaming industry representatives. The Netherlands, Italy, and the UK (which adopts EU regulations pre-Brexit) have sought to enforce these aspects.
Various consumer protection regulatory requirements, such as prohibiting misleading advertisements that suggest products are available for a limited time only to later offer them again, have also arisen.
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later, must undeniably also be adhered to.
The upcoming EU Digital Equity Act is likewise expected to address administration loot boxes and in-game currencies, according to former commissioner Michael McGrath, although the exact regulations that could be enforced remain uncertain.
Austria: Complicated Legalities Remain
In scenarios involving loot boxes, where the random rewards can potentially be shared among players (i.e., the issue I warned you about), players have successfully sought refunds for loot boxes from both the FIFA (now EA FC) and Counter-Strike franchises.
The contracts for purchasing loot boxes were ruled illegal (as the goods offered violated gambling laws and became unlawful) and were thus reversible. This allowed some players to claim refunds if they chose to do so and were determined enough to pursue legal action.
Conversely, other cases under similar circumstances did not succeed, with the court determining that the loot box in question was legitimate, and therefore, the contract was valid, meaning no refunds were owed by the company to the player. Michael Linhard of Salzburg Rechtsanwalts – a law firm representing players seeking refunds – has confirmed that an appeal to the Supreme Court has been filed, with a decision expected prior to Summer 2025, which may hopefully provide a conclusive answer to the pressing question. Despite being technically non-binding, a Supreme Court ruling can be significantly influential and set a precedent.
The players’ legal endeavors were often backed by litigation funders, who aimed to publicize their achievements to attract more clients. Similarly, gaming companies are motivated to highlight their counter-successes to discourage further claims. This has led to both parties promoting their individual victories, resulting in the public not receiving a well-rounded view of the situation.
Germany: 12+ Age Ratings for Loot Boxes
Having examined all decisions made by the German national age rating body, the USK, in 2023 under current regulations, I can confirm that all games featuring loot boxes were rated USK 12 (suitable for ages 12+), including games whose previous annual editions were rated merely USK 0 (suitable for all).
The USK stated that these decisions were, and will continue to be, made on a case-by-case basis, meaning a deviation (i.e., a lower rating of USK 0 or 6 for a game containing loot boxes) is theoretically possible. However, considering this established pattern and the absence of any deviations thus far, companies releasing games with loot boxes should be prepared to receive a USK 12 rating in Germany.
Additionally, the USK confirmed that for digital app stores (e.g., the Google Play Store), all games with loot boxes will automatically receive at least a USK 12 rating since it is impractical to manually review each game. This automatic process is currently being implemented.
In contrast, PEGI in Europe and ESRB in North America simply note the presence of loot boxes without factoring them in when determining age ratings, although PEGI has penalized companies with fines for failing to disclose loot box presence when included and for inaccurately disclosing loot box presence when none existed. The ESRB does not provide information on enforcement actions but is authorized to thoroughly monitor companies.
Because different age ratings organizations approach loot boxes differently, we encounter a somewhat contradictory situation where a game’s physical packaging sold in the UK shows a PEGI 3 rating on the front, but when the box is opened, the internal disc displays a USK 12 rating instead. This discrepancy arises from the manufacturing process and is likely to confuse consumers and parents who may not grasp the complexities of various age rating systems, potentially undermining their trust in these systems overall.
We encounter a somewhat contradictory situation where a game’s physical packaging sold in the UK shows a PEGI 3 rating on the front, but when the box is opened, the internal disc displays a USK 12 rating instead.
Australia: M (Not Recommended for Under-15s) Age Ratings
A regulation similar to the one in Germany began applying in Australia from September 22, 2024. Games featuring loot boxes will receive an M (not recommended for children under 15) rating at minimum from the Australian Classification Board, while games with simulated gambling will receive an R 18+ (restricted to adults only). Games rated before September 22, 2024, can retain their previous (lower) rating even if they have similar mechanics.
However, if a game’s loot boxes or simulated gambling mechanics are updated after September 22, 2024, the game will automatically become unclassified and illegal to sell by law until it is re-rated under the new guidelines. Such updates include introducing new loot boxes or modifying the potential rewards of existing ones.
For example, Genshin Impact and Zenless Zone Zero were both released before September 22, 2024, but had their age ratings raised to M following that date after my complaints regarding the company making loot box-related updates that invalidated the game’s earlier ratings.
Critically, the simulated gambling regulation does not only apply to so-called social casino games that allow players to spend real money on simulated gambling mechanics (like playing on slot machines or poker) without the potential to convert winnings back into cash. Games featuring interactive simulated gambling mechanics that do not incorporate real-world money via in-game purchases could also receive R 18+.
Interactive traditional gambling motifs (e.g., slot machines) are heavily regulated regardless of whether they involve real money or not. This mirrors the PEGI 18 regulation for such mechanics that has been in place in Europe since 2020. Companies should carefully consider whether or not to incorporate traditional gambling elements into their video games.
Mainland China, Taiwan, and South Korea: Explicit Probability Disclosure Regulations
In 2023, the Shanghai-based company behind Survivor.io was fined CN¥10,000 (£1,100) in Mainland China for failing to disclose loot box probabilities, which was deemed a violation of consumer protection laws. Companies operating