Under Belgian law, loot boxes are considered games of chance, which means they are legally considered gambling. Sirius Legal, representing a plaintiff named as Mr Ls is said to have spent €67,813 in 11 months during 2021, buying loot boxes in the game Top War: Battle Game, developed by River Game.
Belgian Loot Box Law
Under Belgian law, games with loot boxes require game operators to be licensed. This is the same requirement as for the top-rated mobile casino apps: apps that offer access to slot machines, table games, and real-money live poker.
Different countries have different regulations to deal with loot boxes, with Belgium taking quite a strict stance on the practice. Game operators need to have a license, but this case is not being brought against the makers, River Game, but, rather, against Apple.
Loot Boxes
The game Top War: Battle Game is available on the Apple app store, which is where the plaintiff downloaded it. After downloading the game, Mr Ls, who is described as a gambling addict with a mobile phone, spent €67,813 between January and November 2021.
Apple’s Liability
Operators have needed licenses since 2018 and the plaintiff’s legal representation has argued that Apple is responsible for ensuring that game operators have the appropriate licenses.
Apple has countered the argument, stating that they are spared responsibility thanks to the EU’s Electronic Commerce Directive of 2000. The directive states that providers of information society services are not liable for the information stored.
Sirius has said that Apple is responsible because the directive excludes gambling activities and, therefore, Apple has no immunity.
Asking EU Courts
As a result of the legal argument, the court in Belgium has asked the Court of Justice of the European Union to give its verdict. Specifically, it has asked if gambling is excluded from the directive and, subsequently, whether the term gambling activities need to be specifically defined under law. It has also asked whether software for sale, as is the case with apps on the Apple App Store, constitutes the store of information or whether they go further than this.
The act that was in place at the time of the alleged infringement has been replaced, but the Digital Services Act, which was introduced in 2022, has similar wording and similar liabilities, which means the decision by the CJEU could have a direct impact on the new legislation.
Global Loot Box Laws
Different countries treat loot boxes differently. While Belgium has introduced laws that declare them as a form of gambling, they have taken minimal action against companies that have contradicted the laws.
The Netherlands has similar restrictions, while the UK has a program of self-regulation. Japan has strict rules against a specific type of loot box known as kompu gacha, and countries including Austria, Germany, and Italy as well as Taiwan and South Korea have restrictions like age ratings and a requirement for game makers to display loot box probabilities.
