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ARTICLE · 08 AUGUST 2024

Legal Risks Of Loot Boxes – Part II

NORDIA Law
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This is a sequel to my previous article, which analysed the risk of loot boxes being considered gambling and provided an overview of the current legal environment and relevant court cases. In this article...

United StatesLitigation, Mediation & Arbitration
Tuomas Pelkonen
Tuomas Pelkonen

This is a sequel to my previous article, which analysed the risk of loot boxes being considered gambling and provided an overview of the current legal environment and relevant court cases. In this article, I will provide more guidance and tips on how to avoid the risks associated with loot boxes based on recent court cases in the United States, the Netherlands, and Austria.

A Lesson from the United States

Always include an arbitration agreement and class action waiver into your terms of service to avoid expensive class actions.

In 2021, a plaintiff filed a putative class action against Electronic Arts Inc. ("EA") alleging that the Ultimate Team Packs in EA's video games' (FIFA and Madden NFL) ultimate team modes, where players build their dream teams and compete against each other or AI violated California gambling law. The plaintiff argued that the Ultimate Team Packs, which contained player items, qualified as an illegal "slot machine or device" under

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