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Navigating the regulatory maze: A global guide to loot boxes in video gaming

Loot boxes in video games are mysterious treasure troves of chance that offer players a variety of rewards. Their introduction of real-world currency has sparked controversy due to their randomized nature and similarities to traditional gambling.

Regulatory bodies worldwide have differing views on labelling loot boxes as gambling and managing the interactions of related microtransactions. The question of consumer protection standards remains unresolved; some focus on fitting loot boxes into existing gambling laws, while others take a more targeted approach.

Determining the extent of regulatory control for consumer protection is a crucial consideration. In taking a holistic approach, gaming design measures can mitigate harm (such as disclosing reward odds, setting spending limits, and preventing cash-outs). Implementing and enforcing these regulations will present a range of challenges.

Jurisdictions vary in their regulations and perspectives, which creates a complex environment for businesses to navigate. DLA Piper has prepared this guide to assist clients in this evolving regulatory landscape, offering tools and insight for their gaming ventures. Our aim is to support them as they navigate an industry under intense scrutiny from regulatory authorities.

Click below to access the loot box guide webpage, and please feel free to reach out to the listed local contacts should any further advice be required.


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