Dutch authority clamps down on loot boxes

The Dutch gambling regulator, Kansspelauthoriteit (KSA), begins its next phase in the clamp down on Loot boxes later this week.

The action follows an investigation into the practice from November 2017 to April 2018 in which the regulator concluded that loot boxes encourage a gambling mindset in youth and requires games companies to make adjustments which would include disallowing trading or selling of loot boxes for cash outside of the game.

The investigation found four of the ten loot boxes from popular games that were studied were in conflict with Dutch gambling law.

KSA said it will begin monitoring games companies this week to ensure that adjustments were sufficient to ensure loot boxes could no longer be characterised as games of chance as outlined in the Betting and Gaming Act.

The KSA suggested adjustments might include providers replacing loot boxes in their game with ‘direct buy’ or virtual items allowing purchasers to choose what they buy.

There will be strict penalties for those that do not make the required adjustments, administrative fines of up to Euro 830,000 could be imposed or 10 percent of the company’s worldwide turnover, the KSA warned.

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