EA says loot boxes are not gambling

The gaming company said that despite the recent clampdown on loot boxes, they don’t consider their games as gambling.

UK.- Regulators from European countries, such as Belgium and the Netherlands, have recently questioned loot boxes and even said that they consider them as gambling, forcing operators to adjust games as they violate their regulations. EA CEO Andrew Wilson insisted that the company doesn’t consider loot boxes as gambling.

“We don’t believe that FIFA Ultimate Team or loot boxes are gambling,” he said during an investor call. “Firstly, players always receive a specified number of items in each FUT pack, and secondly we don’t provide or authorise any way to cash out or sell items or virtual currency for real money,” said Wilson.

The CEO addressed the sale of in-game items through third party websites, which is why some regulators argue that they are gambling. “While we forbid the transfer of items or in-game currency outside [the games], we also actively seek to eliminate that where it’s going on in an illegal environment. And we work with regulators in various jurisdictions to achieve that,” he added.

Wilson added that EA is “working with all the industry associations globally and with regulators in various jurisdictions and territories, [and] have established that programs like FIFA Ultimate Team are not gambling.”

Last month, the Belgian Gaming Commission (Kansspelcommissie) threatened operators with fines up to US$2 million if a number of popular video games are not adjusted. The commission came to the conclusion that loot boxes are games of chance, and if these are further exploited they will insist on tough legal actions. 

The Commission said that it started the analysis of various video games in November 2017 to determine whether the loot boxes or other “in-game elements” meet the definition of a game of chance. Overwatch, FIFA 18, Counter-Strike: Global Offensive and Star Wars Battlefront II were specifically analysed.

Furthermore, the Dutch Gambling Authority 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. These actions must be taken before June 20th, as enforcement action will be taken against gambling providers with loot boxes that do not comply with the standard.

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.