Loot Boxes Under Fire in Spain and the Netherlands

More European nations consider regulating highly debated loot boxes and cause the video game feature to become age-restricted and outlawed. In recent reports, lawmakers in Spain and the Netherlands motion for legislation and the two countries may soon join Belgium and Japan in regulating these micro-transactions.

This contentious topic has many anti-gambling and anti-predatory activists up in arms because they compare in-game loot boxes with the randomness of gambling. Spain raised the possibility of loot-box regulation, and the Netherlands lifted an existing ban on micro-transactions earlier this year. Now both countries seek clear outcomes and work toward controlling access to games containing these features.

As many political parties and consumer interest groups around the globe call for loot box regulation, this could be where the scales tip for video game manufacturers and monetisation.

 Spain Seeks Clarity in Loot Box Regulation

The Ministry of Consumer Affairs in Spain announced its draft legislative decree, whereby the country seeks to control access to loot box purchases. Its proposal to review player incentives through loot boxes stemmed from the random reward mechanism (RRM) used by video game developers.

Minister Alberto Garzon raised the concern that RRM is too similar to gambling games and poses a similar danger to players. The minister and other lawmakers agree that these micro-transactions and the random nature of the loot box's contents pose a threat to consumer protection.

The purchases and random rewards mimic gambling, and many point to the possibility of compulsive buying. Spanish lawmakers propose a list of controls for any game that contains loot boxes.

 Regulate not Ban?

The ministry opened a consultation for contributions from stakeholder groups. Proposed regulations include age restrictions, marketing guidelines, and probability indicators. If the bill comes into effect, players will need to access the in-game store with proof of identification.

Like gambling platforms, game providers will have to determine whether a player is of legal age before they make a purchase.

Advertising restrictions mirror that of Spain's gambling act. Game providers may only advertise between 1 am and 5 am, and the draft decree stipulates ads must include warnings of responsible spending.

The legislators request that it be unlawful to sell loot boxes in in-game currency and want companies to display prices in Euro. Developers must disclose what the player's chance is of earning certain rewards.

The ministry proposes other responsible gaming tools, such as time and spending limits and self-exclusion options. Spain's Ministry of Consumer Affairs also set out guidelines on applicable penalties for those who violate loot-box regulations, and these range between €200,000 and €3 million, depending on the severity of the case.

 "Ban Loot Boxes"

Although the government lifted the original ban at the beginning of 2022, six political parties in the Netherlands urged the government to outlaw micro-transactions once again. Like its neighbouring country, Belgium, these politicians are not interested in regulating loot boxes. They want an outright ban.

Dutch lawmakers banned randomised micro-transactions in 2020, but a court ruling prompted the lift of this ban in 2022. The six political parties motioned for the classification of loot boxes as a form of gambling, and they believe addiction is a genuine threat to those who purchase the random in-game rewards.

If the Dutch Senate approves the motion, which it likely may do because of the majority support, all video games available to players in the Netherlands would have to remove loot boxes from the game features.