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Netherlands Fines EA €10 Million for ‘Games of Chance’ Violations
By Shane Addinall Nov 06, 2020 IndustryThe Court of the Hague has upheld pleas from the KSA in the Netherlands over the contravention of gambling laws in the country. The €10 million fine for EA Games comes as a warning to providers that loot boxes ought to be kept out of gaming for minors.The debacle continues in the realms of regulation regarding the subject of loot boxes and their affiliation to ‘games of chance’ and gambling for minors.
The first foot forward comes from the Dutch Gaming Authority (KSA) who filed charges against Electronic Arts Inc and Electronic Arts Swiss Sarl (EA Games) for contravening the strict laws on the illegal provision of games of chance in 2019.
Investigations into EA and games like FIFA, where packs are sold to players, started in 2018 and sequestration began only a year later once sufficient evidence had been collected after EA ignored warnings to remove loot boxes from the Netherlands region.
The Court of the Hague has since been found in favour of the KSA and have upheld a penalty of €10 million, payable to the KSA in damages. The gaming company was also to remove all gambling content from its game titles for the Netherlands.
Walking the Loot Box Line
Loot boxes are mystery prizes found in certain popular video games, which can be bought with in-game credits or real money. The chance element arises in the fact that the prize is unknown to the buyer. It’s a ‘gamble’ as to what they will receive.
In these packs, players are rewarded with random superficial prizes that don’t usually give them any great value or advantage in the game itself. In some cases, sought-after characters and items can be traded and sold to other players and therefore represent real monetary value.
While legislation on loot boxes is grey in many regions globally, several regulators are looking to review their laws to include loot boxes into the gambling segment. It’s certainly about time, especially when these gambling tools are placed in environments where minors can easily access them.
The very reason gambling is age-restricted in the first place, is because gambling addiction is a very real threat to the young, who seem to be more susceptible to its vices.
The international call is for a definite line to be drawn in regulation, to cut out these potentially threatening new gaming innovations and keep gambling far from arcade-like entertainment.
The UK Rallies to the Party
The government in the United Kingdom has had a major concern with the loot box gaming idea for a while now. The UK Gambling Commission is known for its no-nonsense approach to responsible gambling and has moved proverbial mountains in the past for the sake of protecting minors and problem gamblers.
They have cited statistics from a study that found that 55,000 problem gambling cases belong to individuals who are aged 11 to 15. The threat is obviously very prevalent among the youth.
In July, the House of Lords recommended that the legal classification of loot boxes be changed to that of gambling, which means that gaming companies will feel a lot more pressure to change their ways sooner rather than later.
Should the UK make these changes, we believe that it will only spark a chain reaction around the world as evidence builds in favour of the plight and as resolves are tested.
Round-Up
Here at Gambler’s Pick, we are sold-out to gambling and games of chance, but only when they are provided within the correct legal landscape and are safely regulated to ensure that the elements involved in the entertainment are provided responsibly.
If the threat is real, then we welcome interventions that minimise its influence on the youth.
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