Dutch Gambling Authority calls for loot boxes reform

The gambling regulator called upon the games sector to adjust games before mid-June, as some of them violate the current laws.

Netherlands.- Kansspelautoriteit (Dutch Gambling Authority), Netherlands’ gambling regulator, revealed in a public report that four out of ten loot boxes violate the Betting and Gaming Act. The gambling regulator asked the gaming sector to adjust the loot box offerings within games in order for them to comply with the current regulations.

The Gaming Authority said that from June 20th, enforcement action will be taken against gambling providers with loot boxes that do not comply with the standard. The Gaming Authority has been investigating loot boxes in recent months after concerns had been voiced by gamers, parents and care institutions. “Worldwide, various regulators of the gambling market are currently bending over the phenomenon of loot boxes. The Gaming Authority is in close contact with fellow supervisors to act jointly,” said the authority.

Of the ten examined loot boxes, four are in violation of the law, and the regulator believes that this is because coincidence determines the content of those loot boxes. Moreover, the prizes can be traded outside the game as they have economic value. It is forbidden to offer this type of game of chance to the Dutch players without a licence.

The investigation by the Gaming Authority also showed that there may be a connection between loot boxes and the development of addiction: “The Gaming Authority, therefore, calls on providers to remove the addiction-sensitive elements (‘near-profit’ effects, visual effects, the possibility to keep open loot boxes in quick succession and the like) from the games and to take measures to exclude vulnerable groups; to demonstrate that the offered loot boxes are harmless,” added the Kansspelautoriteit.