The German Federal Gaming Authority is promoting a legal review of loot boxes and in-game purchases. Thus, the regulatory body, Glücksspielbehörde (GGL), declared its approval to control and monitor loot boxes. The objective is to protect children and young people vulnerable to gambling.
As part of the review, loot box reward mechanisms will be investigated to find out whether they constitute gambling.
What are loot boxes?
The study began with a workshop on February 28th with key contributions from Professor Martin Maties of the University of Augsburg and sports expert Dr. Lennart Brüggemann.
“The objective of the event was to advance the evaluation of loot boxes under gaming law. And, shed light on all legal arguments in this border area between gaming and betting,” said GGL.
A loot box can be anything related to a paid element to open a random package within a video game like EAFC or Counter Strike.
They are usually shaped like a box or chest and come with a price tag before an animation or progression wheel fills in to reveal the contents.
Much of the discussion relates to the legal scrutiny surrounding loot boxes and gambling legislation, and a gray area between gaming and betting that is potentially occupied.
Then, the outcome of the dialogue around expert-led workshops becomes a determining element in the direction taken by GGL. Other negotiations are planned, including contributions from other areas.
Betting authority investigates gambling
Thus, in recent weeks, the German state of Bremen has discussed banning these forms of withdrawals in many popular game titles on a national level.
Two motions have been tabled in the Bremen State Parliament on the topic of loot boxes and in-game purchases. Therefore, the coalition expects support from the federal government.
If successful, a historic ruling could restrict the use of loot boxes in northern Germany. Therefore, the Social Democrats, the Greens and the coalition have proposed several restrictions and are interested in working at the federal level.
The aim is to completely suspend the use of these elements in the German gaming market.
