The Spanish Ministry of Consumer Affairs has published the Preliminary Draft Law regulating the random reward mechanisms associated with interactive leisure software products, better known as “loot boxes” (hereinafter, the “Preliminary Draft Law”). With this publication, a period of public hearing and information has begun, whereby any interested person can provide their opinion through this email address: dgoj.sgregulacion@ordenacionjuego.gob.es. The period began on 1 July 2022 and will finish on 23 July 2022 at 7 am.

Among the most relevant elements of this Preliminary Draft Law, available here, we can highlight the following:

• access to loot boxes will be prohibited to minors, for which purpose identity verification and parental control systems must be enabled, always respecting the applicable data protection regulations;
• the Preliminary Draft Law contains restrictions on commercial communications affecting these mechanisms, being only allowed on websites and social network accounts specialized in offering gambling information – as defined in the Spanish Law 13/2011 regulating gambling-, or between 1 am to 5 am in the case of being made in audiovisual media, among others. Also, advertising of loot boxes on “physical means” (billboards, marquees, posters, monitors, screens, etc.) will be prohibited;
• it contains certain safe gambling information duties, meaning that entities that commercialize loot boxes will have to publish clear and truth information on the conditions for accessing to these mechanisms, and as well as on the probabilities and amounts to be granted by each of these mechanisms;
• according to the Preliminary Draft Law, self-exclusion mechanisms must be established. Also, it will be mandatory the implementation of a gambling session that will oblige the user to determine the maximum time and money he/she intends to use in said session (similar to what it is already applicable to slots in Spain);
• a disciplinary regime is established, where very serious offences (which include infractions regarding the aforementioned minor restrictions, commercial communications, or session establishing money and time limits, among others) include a sanction ranging from €200,000 to €3,000,000, and the possible closure of the mechanisms that offer loot boxes, may be imposed.

Finally, it is very important to mention that the additional disposition establishes that entities authorized to carry out gambling activities in Spain under the Spanish Gambling Act 13/2011, will not be able to commercialize loot boxes in this country.

We will keep the information on the status of this new regulation updated on this blog.