As regulation tightens up, will gaming studios gamble with loot boxes pay off?

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you would be hard These days, you need to find a game that doesn’t include microtransactions in one form or another, especially in mobile games. It just makes sense for gaming companies – an extremely lucrative source of income, the microtransaction market. cost $60 billion in 2021 and is projected to reach $106 billion by 2026.

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Microtransactions, usually offered in the form of in-game collectibles, currency, or random loot boxes, are now better received than they were a few years ago. Loot boxes, through which players can earn random in-game rewards in exchange for real money, have been undermined for some time now and are increasingly being scrutinized by the government.

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Loot boxes have become a problem because they encourage spending real money for a slim chance of getting valuable in-game items, most often leaving players with nothing but the desire to keep gambling to get better items. Companies have been known to use predatory sales tactics to sell loot boxes and in the process provide underage gambling opportunities. Despite Electronic Arts (EA) insisting that loot boxes are not games of chance and, in fact, are “surprise mechanics‘, several studies have shown that there is link between loot boxes and gambling addiction.

Redemption of bureaucracy

When Belgium prohibited loot boxes in 2018 it looked like the first domino had fallen and further regulation from other countries would soon follow. However, the subsequent response was lukewarm, despite countries such as the UK. I agree that loot boxes are a problem what needs to be decided.

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One of the biggest hurdles faced by countries trying to regulate loot boxes is that they do not meet their current definitions of gambling, allowing companies to offer them and continue to operate outside of traditional gambling rules.

The Netherlands, following the example of Belgium, also tried to launch a mechanism Fine Electronic Arts in 2019 due to the inclusion of loot boxes in their popular FIFA franchise. This fine was canceled earlier this year after applying.

However, EA could not celebrate the victory for a long time, as the Netherlands did now. pushed to update its legal definition of gambling to provide better regulation of loot boxes. It remains to be seen whether this will lead to a total ban or result in EA requiring a gambling license and all related regulations. When that happens, it’s likely that EA will simply remove loot boxes from games sold in the Netherlands, similar to how it responded to the ban in Belgium.


Credit: techcrunch.com /

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