Austria’s highest court has made a major decision regarding video games. The court ruled that the loot boxes found in EA Sports soccer games are not considered unlicensed gambling. This is a big win for the video game company Electronic Arts.
The case started because one player was unhappy after spending a lot of money. Between October 2017 and October 2021, this player spent nearly €20,000 on in-game purchases. That amount is roughly equal to $24,000.
The player argued that the random reward packages were a form of gambling. In Austria, gambling is strictly controlled. There is a state monopoly, meaning only one official platform is allowed to offer gambling. The player felt that because he was gambling on loot boxes, he should get his money back.
However, the Supreme Court disagreed with the player’s argument. The court issued a ruling that denied the existence of gambling in this specific situation. They stated that the game did not break the country’s gambling laws.
Game Requires Skill For Success
The judges explained their reasoning by looking at the whole game, not just the loot boxes. They said that you cannot look at the loot boxes in isolation. To decide if it is gambling, you have to look at the entire video game.
Austrian law has a clear difference between games of chance and games of skill. It is illegal to wager money on games where luck is the only factor. However, it is allowed to pay money to play games that require skill.
The court decided that EA Sports games are games of skill. They pointed out that winning requires other elements, such as choosing the right tactics and strategy. They also mentioned that a player needs dexterity to operate the controller. Because skill is involved, it does not fit the legal definition of a game of chance.
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Loot Boxes Remain A Gray Area
While this ruling is good news for EA, it does not solve the entire debate about loot boxes. The court did not say that all loot boxes are safe. They only ruled on this specific game because it has other skill-based elements.
If a game was based 100% on loot boxes, the court might have decided differently. The ruling stated that a game of chance is one where the outcome depends mostly on luck. If there is no way to use logic to expect a certain result, and players are just hoping for a win, that is gambling.
Other Countries Struggle With Rules
Other countries in Europe have taken a much tougher stance on loot boxes than Austria. In Belgium and the Netherlands, selling these random rewards for money is actually prohibited. Game makers have had to change their games or pull them out of those countries completely.
Spain has also taken action. Last year, they launched a campaign specifically against loot boxes. The campaign focused on how these boxes can look like gambling for kids. One ad said, “Less Loot Boxes, More Real Gamers.” It complained that many games promise uncertain rewards for real money instead of rewarding skill.
Germany has its own rules, too. There, loot boxes must come with warnings. The games must also show the probability of winning a rare item. These rules can also affect the age rating of the game.
Outside of Europe, the rules are also changing. The United States, China, and South Korea have similar measures in place. Brazil plans to ban the sale of loot boxes to minors later this year. Australia and the United Kingdom have proposed similar measures.
For now, games like EA Sports are generally not considered the highest risk in those countries. However, EA has faced other lawsuits regarding loot boxes in the past. The Austrian ruling allows the company to keep selling these packs in their games for now.
