Will game developers be forced to abandon such profitable monetization methods?
An Austrian court recently made a very interesting decision on the claim of a local gamer against Valve. The court ruled that weapon cases (also known as loot boxes) in the popular multiplayer video game Counter-Strike 2 are illegal gambling.
It is reported that the plaintiff spent over 14 thousand euros on the purchase of loot boxes in the game. Counter-Strike loot boxes contain cosmetic skins for weapons, the value of which is determined by their rarity. If the player is lucky enough, he can "knock out" a very expensive skin, and then even sell it through third-party sites and withdraw real money.
However, the probability of this event is extremely low, so many gamers waste thousands of conventional units, but do not knock out anything valuable. A similar situation occurred with the plaintiff from Austria.
The court ruled that the content of randomly generated loot boxes is illegal gambling, since it is possible to make a profit from the process of opening cases. And since Valve Corporation does not have a gambling license in Austria, the contracts concluded between the company and the player are invalid, and the money is subject to refund.
Although the decision has not yet entered into legal force, it sets an important precedent. Similar lawsuits, and closed in favor of the plaintiffs, have previously been filed against Electronic Arts and Sony over the same loot boxes in the games of the FIFA series.
Experts estimate that Valve may lose tens of millions of euros in annual profits from the sale of loot boxes in Austria if it fails to prove the legality of its in-game mechanics.
The court's decision reflects concerns among Austrian lawmakers about gambling elements in video games and the need to protect users, especially minors, from potential risks. It can put an end to the operation of the dubious business model of loot boxes in Austria.
Many countries still lack specific legislation on this issue. However, restrictive measures are gradually being taken at the State level. For example, in Belgium, loot boxes are also equated to gambling and are prohibited. Other countries are gradually introducing age restrictions, transparency requirements, or even a complete ban on purchases inside games for minors.
The decision by an Austrian court is likely to accelerate the move towards tougher regulation of the video game industry across Europe. And, perhaps, it will make you think about self-regulation directly for development companies, until they are faced with similar legal measures.
An Austrian court recently made a very interesting decision on the claim of a local gamer against Valve. The court ruled that weapon cases (also known as loot boxes) in the popular multiplayer video game Counter-Strike 2 are illegal gambling.
It is reported that the plaintiff spent over 14 thousand euros on the purchase of loot boxes in the game. Counter-Strike loot boxes contain cosmetic skins for weapons, the value of which is determined by their rarity. If the player is lucky enough, he can "knock out" a very expensive skin, and then even sell it through third-party sites and withdraw real money.
However, the probability of this event is extremely low, so many gamers waste thousands of conventional units, but do not knock out anything valuable. A similar situation occurred with the plaintiff from Austria.
The court ruled that the content of randomly generated loot boxes is illegal gambling, since it is possible to make a profit from the process of opening cases. And since Valve Corporation does not have a gambling license in Austria, the contracts concluded between the company and the player are invalid, and the money is subject to refund.
Although the decision has not yet entered into legal force, it sets an important precedent. Similar lawsuits, and closed in favor of the plaintiffs, have previously been filed against Electronic Arts and Sony over the same loot boxes in the games of the FIFA series.
Experts estimate that Valve may lose tens of millions of euros in annual profits from the sale of loot boxes in Austria if it fails to prove the legality of its in-game mechanics.
The court's decision reflects concerns among Austrian lawmakers about gambling elements in video games and the need to protect users, especially minors, from potential risks. It can put an end to the operation of the dubious business model of loot boxes in Austria.
Many countries still lack specific legislation on this issue. However, restrictive measures are gradually being taken at the State level. For example, in Belgium, loot boxes are also equated to gambling and are prohibited. Other countries are gradually introducing age restrictions, transparency requirements, or even a complete ban on purchases inside games for minors.
The decision by an Austrian court is likely to accelerate the move towards tougher regulation of the video game industry across Europe. And, perhaps, it will make you think about self-regulation directly for development companies, until they are faced with similar legal measures.
