{"id":243871,"date":"2021-11-08T03:48:29","date_gmt":"2021-11-08T10:48:29","guid":{"rendered":"https:\/\/gamesync.consulting\/?p=243871"},"modified":"2023-02-10T22:34:43","modified_gmt":"2023-02-11T05:34:43","slug":"the-action-against-loot-boxes-is-a-wake-up-call-for-the-industry","status":"publish","type":"post","link":"https:\/\/gamesync.consulting\/the-action-against-loot-boxes-is-a-wake-up-call-for-the-industry\/","title":{"rendered":"The Action Against Loot Boxes Is a Wake up Call for the Industry"},"content":{"rendered":"[et_pb_section fb_built=”1″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}” text_font_size=”18px” text_line_height=”1.8em” header_2_font=”Poppins|700|||||||” header_2_font_size=”32px” header_2_line_height=”54px” hover_enabled=”0″ sticky_enabled=”0″]\n
The esports industry has grown exponentially over the past few years. The future projections show an increasingly profitable industry with higher revenues, visibility and player base. However, as we move further into the next phase of esports, certain old practices are coming under legal scrutiny.<\/p>\n
In the first half of 2018, several European nations have scrutinized the place of loot boxes in the video gaming industry. Loot Boxes are one of the prevalent ways for game developers to maintain a steady stream of income while allowing their games to be free of cost. The advantage of such a business model is in the greater reach to the masses, while enticing users to open more boxes via the help of audio-visual cues.<\/p>\n
Loot Boxes can be called the golden goose of the esports industry. It dramatically increased the revenues for game developers and Valve was one of the first to successfully use loot boxes to further their revenue source. The vast success of Dota 2 and the revenue model ensured that they have a significant source of income.<\/p>\n
However, Loot Boxes constitute a form of gambling, at least according to the Dutch Gaming Authority. They have specifically pointed out four games which are illegal according to their laws but have also sent a statement to the industry as a whole.<\/p>\n
What Is a Loot Box?<\/h2>\n
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Overwatch has its loot boxes on sale within the game client<\/p>\n<\/div>\n
A loot box is a consumable virtual item which can be opened to provide further cosmetic, virtual items. These virtual items can be in the form of customization to existing items as well as game-changing equipment which boosts your character\u2019s efficiency.<\/p>\n
When a user opens a loot box, he stands a chance to win a virtual item. However, a player needs to use real money directly or indirectly to open a loot box. The loot box can be purchased directly via payment or a user can purchase in-game currency\u00a0which then opens these loot boxes. The items won from these loot boxes ideally should not have any monetary value according to the game developers.<\/p>\n
However, many of these game developers have also enabled a trading system wherein users can trade items. These items are meant to be traded for one another, but it breeds a gray market where users pay real money for the items. The monetary value of an item depends on its visual effects, it\u2019s efficiency in the game as well as rarity. Assigning a real money value to the items essentially tilts the definition of Loot Boxes as a whole. The Dutch Gaming authority found some of the games illegal according to the Dutch Betting and Gambling act which centers around the concept of betting and gambling real money on items that can be traded outside of the game. The Authorities published a paper which notes that \u2018the content of these loot boxes is determined by chance and\u2026 the prizes to be won can be traded outside of the game: the prizes have a market value.\u2019<\/p>\n
The Dutch Gaming Authority Cracks the Whip<\/h2>\n
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Following several complaints by players and parents alike in November 2017, the Dutch gaming Authority took it upon itself to broaden its scope. They studied the top ten games on Steam and decided that certain games with loot boxes will be considered gambling under the Dutch Betting and Gambling Act.<\/p>\n