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ARTICLE · 04 DECEMBER 2017

The Legality Of Loot Boxes – Update

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We recently blogged on legal issues with loot boxes as a game mechanic, and some of the scrutiny to which they are being subjected.

GlobalMedia, Telecoms, IT, Entertainment
James Gatto
James Gatto
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We recently blogged on legal issues with loot boxes as a game mechanic, and some of the scrutiny to which they are being subjected. The debate continues on whether loot boxes are an illegal gambling mechanic, but at least for now, they likely remain legal in many jurisdictions. The following is an update on recent statements from various gambling regulatory authorities around the world.

  • United Kingdom – The Executive Director of the UK Gambling Commission issued recent guidance on loot boxes, stating: A key factor is whether in-game items acquired 'via a game of chance' can be considered money or money's worth. In practical terms this means that where in-game items obtained via loot boxes are confined for use within the game and cannot be cashed out it is unlikely to be caught as a licensable gambling activity. In those cases our legal powers would not allow us to step in.

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