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A lootbox shaped like a treasure chest in a cave

Austria says no, Belgium says yes to ‘gambling’ label for loot boxes

In Austria, a gambler lost his case after spending tens of thousands of euros on loot boxes. The judge clearly stated that this was not gambling. At the same time, anger is rising in Belgium, where Meta is massively promoting these same loot boxes among young people. 

Two countries, two visions. And that’s precisely where the debate that has been stirring up the world of video games and gambling for years comes in. 

Austria focuses on the game, Belgium on its effect

The Austrian Supreme Court examined the case of a player who, between 2017 and 2021, spent around €20,000 on loot boxes in a football game. He believed that this was illegal gambling and wanted his money back. The judge looked not just at the loot boxes, but at the game as a whole. 

According to the court, success depended mainly on skill. The digital objects had no real value outside the game and could not be resold. Therefore, according to the law, the system was not gambling. 

In Belgium, the focus is elsewhere. Here, the focus is on the effect on young players. And how these systems are promoted.

Meta promotes what is almost always banned in Belgium

An investigation carried out by Leon Y. Xiao, a researcher at beClaws, reveals that Meta has received payments from 172 mobile game companies to promote loot boxes to Belgian users. This is surprising, as loot boxes are almost always considered to be gambling in Belgium. Developers must obtain a licence to market them, but this is rarely granted. 

An analysis of 1,574 adverts revealed that these purchases were presented to Belgian users 4.5 million times. Over 1.26 million times to young people under the age of 21. 

Games such as Genshin Impact, Brawl Stars and Harry Potter: Puzzles & Spells were particularly highlighted. These are mainly titles popular with children and teenagers. 

Advertising loot boxes is punishable in its own right

According to Xiao, it’s not just a question of offering loot boxes. In Belgium, advertising them is an offence in itself. However, these adverts appear on Facebook and Instagram without much difficulty. 

Belgium was one of the first countries to crack down on loot boxes. A Belgian couple recently filed a complaint against Riot Games for this reason. At the same time, a study shows that 82% of mobile game developers continue to use this system and resort to social networks to reach players. 

While Austria legally stipulates that loot boxes do not constitute gambling, Belgium considers them a risk for young people, actively encouraged by advertising.

The judge also mentioned an argument often used for not considering loot boxes as gambling. Digital content generally has no value outside the game. You cannot sell or exchange items for real money. You can only use them within the game. 

This meant that the player had not proved that the loot box system amounted to gambling within the meaning of Austrian law. His complaint was rejected. 

Europe observes

This decision comes at a time when the debate on loot boxes is intensifying across Europe. Some consumer associations and legislators believe that this mechanism is too similar to gambling. They warn that its effects are particularly noticeable among young players. Others point out that there are clear differences with traditional forms of gambling, such as the absence of any real monetary value for digital objects.

In Austria, the legal limit remains clear for the time being: loot boxes do not constitute gambling as long as the outcome does not depend entirely on chance and there is no transferable value. The way in which other countries deal with this issue still varies.

But for gamblers and parents, this decision raises new questions about what is fair in games and how game mechanics influence spending.

Ron: In the world of Gambling Club, Ron is a dedicated journalist specializing in casino news in the Netherlands. He combines his keen eye for the gambling industry with a deep-rooted passion for sports. With his inquisitive nature and eye for detail, Ron focuses on describing trends and transformations within the Dutch casino industry, seamlessly integrating his sports expertise. With years of experience in journalism, ranging from local reporting to large-scale investigative projects, he offers his readers nuanced and in-depth analyses. In this way, he reveals the fascinating intersections between gaming and sports.
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