A landmark decision from Austria’s highest court has clarified the legal status of loot boxes in video games, ruling they do *not* qualify as gambling. The case stemmed from a player’s attempt to recover a substantial sum – nearly €20,000 – spent on these in-game purchases over a four-year period.
The player, deeply invested in a football video game, had consistently purchased loot boxes between 2017 and 2021, hoping to acquire superior digital players to bolster his virtual team. He argued that, lacking the required license to operate a gambling service, the game developer was effectively offering illegal gambling through these randomized rewards.
However, the court fundamentally disagreed, distinguishing loot boxes as a separate element *within* the game itself. This distinction proved crucial when evaluating whether they met the strict criteria for gambling as defined by Austrian law.
The court emphasized the significant role of player skill in determining the outcome of the game. “The player can, through their own skills…control the course of the game…establishing a rational expectation of winning,” the ruling stated, highlighting that success wasn’t solely reliant on chance.
The increasing prevalence of loot boxes has sparked a global debate about their potential to normalize gambling-like behaviors. The gaming industry has seen a dramatic shift towards in-game purchases, raising concerns about their impact, particularly on younger players.
Recent research from Norway revealed a concerning link between frequent video game play and an increased risk of developing gambling problems later in life. Games heavily reliant on loot boxes and cosmetic “skins” appear to be particularly influential in shaping these behaviors in adolescents.
Recognizing these risks, Brazil has taken decisive action, enacting a law to prohibit anyone under the age of 18 from purchasing loot boxes. This legislation, championed by President Luiz Inácio Lula da Silva, will be fully implemented this year, with initial safeguards already in place.
Law 15211, designed to protect children in the digital realm, broadly prohibits the promotion and marketing of gambling, alcohol, tobacco, and other age-restricted products to young audiences. This move signals a growing international effort to address the potential harms associated with these increasingly common in-game mechanics.
