Irish government concerned over loot boxes

The government is of of the European territories concerned over the increase of loot boxes.

Ireland.- David Stanton, Minister of State in the Department of Justice of Ireland, spoke to the Seanad after the country signed a declaration from the Gaming Regulators European Forum (GREF). which reflected concern over the impact of online gambing. However, he said that the declaration has no legal effect.

‘Loot boxes’ are virtual surprise packages that the players can purchase with real money. A number of gambling regulators across the continent have manifested their opposition to loot boxes as they believe it is an illegal game of chance, therefore a form of gambling, and that companies should comply with regulations.

However, Stanton didn’t say that the country will follow other European territories and crackdown on loot boxes: “Where a game offers the possibility of placing a bet or the taking of risk for financial reward within the game, then, in my view it must be licensed as a gambling product. To offer gambling products in Ireland, a license is required under the Betting Acts 1931-2015 or the Gaming and Lotteries Act 1956. The Revenue Commissioners are the primary responsible licensing authority under both Acts, with some involvement of the Minister for Justice and Equality.

“However, it should be understood, that if a game offers in-game purchases – be they loot boxes, skins, etc. – which are promoted to gamers as increasing their chances of success, such purchases are essentially a commercial or e-commerce activity. This activity would fall within normal consumer law,” he added.

Moreover, he said that the Department of Justice doesn’t have a specific role to regulate game developers on how their products operate or the offering of in-game purchases. “If there is dissatisfaction with the purchase or, how it is promoted, then objections should be directed to the appropriate authority. My Department does not have a role to regulate game developers on how their games work nor, in the offering of in-game purchases.”

Ireland is currently developing a gambling law that will include the establishment of a government-independent regulatory authority for the industry. The government is expecting a report from an inter-inter-departmental group later this year.