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ARTICLE · 06 JUNE 2019

United States Senator Proposes Law To Regulate Microtransactions And Loot Boxes

In May 2019, Senator Josh Hawley introduced a bill called The Protecting Children from Abusive Games Act to regulate "pay-to-win microtransactions" and the sale of "loot boxes" in video games sold in the United States.

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In May 2019, Senator Josh Hawley introduced a bill called The Protecting Children from Abusive Games Act (the "Act") to regulate "pay-to-win microtransactions" and the sale of "loot boxes" in video games sold in the United States. The bill follows similar moves by European gaming authorities that banned the sale of loot boxes in video games in Belgium and the Netherlands, as well as even earlier regulatory measures in Japan. It also builds on state-level regulatory action against loot boxes and skingambling in Washington state.

If adopted into law, it will require fundamental changes to how many games generate revenue, since it could effectively outlaw many of the most common monetization strategies for both paid and free-to-play (F2P) games.

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