German Region Seeks to Prohibit Loot Boxes in Video Games

A state in Germany is spearheading an effort to outlaw loot boxes in video games, a move that will be discussed and debated nationwide. According to reports by the German news outlet Buten un Binnen, the governing coalition, comprising the Social Democrats, the Greens, and Die Linke, has proposed a series of restrictions on loot boxes, including a complete ban, in the Bremen parliament. In response, the Christian Democrats Union presented its own set of proposals, which were ultimately rejected in favor of the coalition's motion. Researcher and legal expert Leon Y. Xiao, an authority on loot box regulations, noted that this development marks the beginning of a national discussion, as the Bremen state parliament has requested the state senate to push for the coalition's proposals at the federal level. Currently, Germany's only regulation concerning loot boxes requires games containing them to clearly indicate this on their packaging, which is taken into account when determining the age rating by the local rating body, USK. The coalition's proposal advocates for a ban on loot boxes, social casino games, and premium currency, as well as the livestreaming of games that feature loot boxes. In contrast, the CDU's proposal suggests implementing ID verification for in-game purchases, displaying prices in Euros, and a registration process that prompts players to set a monthly spending limit and warns them about potential risks. Additionally, the CDU proposes banning loot boxes for users under 10 years old and prohibiting the advertisement of loot boxes to individuals under 18. Xiao pointed out several inaccuracies in the coalition's proposal, including the claim that adults have developed gambling addictions through the purchase of physical card packs, which lacks evidence. The coalition also incorrectly stated that Belgium and the Netherlands have banned loot boxes. In reality, Belgium's gambling laws are broad enough to potentially encompass loot boxes, but no enforcement has occurred, while the Netherlands proposed a ban but its highest administrative court ruled that loot boxes cannot be regulated under gambling law, leading to ongoing discussions. For more information on these developments and restrictions in other markets, refer to Xiao's latest report, the Loot Box State of Play, published on GamesIndustry.biz.