Netherlands Court Rules EA’s Loot Boxes are Illegal Gambling and Upheld Earlier Fine

Casino Watch Focus has reported on the newest form of gambling in video games known as loot boxes. This particular gambling-esque mechanic was first brought forth to mainstream media because of their prevalence in EA’s Star Wars licensed BattleFront II game.  Since then, regulators all over the world have urged for studies or moved to advance legislation that regulates or bans loot boxes.  So perhaps it’s fitting that the publisher EA is again at the forefront of the battle over loot boxes in the Netherlands.  This time they have been accused of allowing illegal gambling in their world popular soccer game Fifa.  The court ruled that their loot boxes are illegal and ordered them to pay a fine. An online gaming source explains:

A Netherlands District Court this week ruled against Electronic Arts in a case over FIFA loot boxes, allowing the Netherlands Gambling Authority (Kansspelautoriteit, or Ksa) to proceed in fining the publisher €10 million for violating the country’s Betting and Gaming Act.

“The Ksa believes it is crucial to shield vulnerable groups, such as minors, from exposure to gambling,” the regulator explained. “For that reason, the Ksa supports a strict separation between gaming and gambling. Gamers are often young and therefore particularly susceptible to developing an addiction. As such, gambling elements have no place in games.”

According to the judgment, EA argued that FIFA loot boxes would not count as gambling under the Betting and Gaming Act because FIFA Ultimate Team packs (loot boxes) don’t offer items of value because they cannot be directly converted into money, that FIFA is inherently a game of skill rather than chance, and that there is no scientific evidence linking the opening of Ultimate Team packs to gambling addiction.

The court was unswayed by those arguments, noting that there are ways for people to profit from Ultimate Team cards that can be valued at nearly €2,000, and that people can ignore the proper FIFA gameplay and “play” the Ultimate Team packs as their own sort of game.

As for the lack of scientific proof, the judges ruled it not necessary that every new game of chance be proven to cause problems, because the Betting and Gaming Act is based on the assumption that games of chance carry with them a risk of gambling addiction. They also pointed to an increasing body of scientific research and experts warning about loot boxes, as well as reports made to the Ksa by individuals who had been affected by them.

Naturally, EA is expected to appeal the decision.  They asked the court to not disclose the amount of the fine, but the court’s response was “that the public interest in announcing the fines and warning the public about unlawful commercial practices outweighed EA’s interest in preserving its reputation.”

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