Why Are Loot Boxes Banned in Belgium?
The core reason loot boxes are effectively banned in Belgium stems from the country’s stringent gambling laws. Belgium doesn’t have a specific law that explicitly states “loot boxes are illegal,” but rather, their existing Gambling Act of 7 May 1999 is interpreted to include loot boxes that require real-world money for purchase. Article 4(2) of this act prohibits participation in a game of chance without the appropriate licensing, and the Belgian Gaming Commission has determined that loot boxes fall under this definition when they involve the use of real money to obtain random in-game items. This interpretation means that selling loot boxes without a gambling license in Belgium is against the law. Essentially, if a system requires real money and produces random results that can be utilized in the game, it is regarded as a form of illegal gambling.
In 2018, the Belgian Gaming Commission, rather than creating new legislation, applied this existing law to loot boxes. They threatened legal action against gaming companies that offered loot boxes without a gambling license, effectively forcing many companies to disable the function in Belgium. This “ban” wasn’t a formal decree banning a particular item or system; instead, it was the enforcement of a long-standing law on a new technology.
The core argument is that loot boxes involve the use of real money for the chance to win in-game rewards, mirroring the mechanics of traditional gambling. This poses issues, particularly around consumer protection and potential addiction, mirroring the rationale behind traditional gambling regulations. This approach makes Belgium one of the strictest European countries when it comes to loot boxes.
The Legality of Loot Boxes: A Belgian Perspective
The Belgian stance on loot boxes hinges on the interpretation that they constitute a “game of chance.” Games of chance, by their nature, involve an element of unpredictability or randomness, and where winnings may vary. When considering that loot boxes are purchased with real money and often provide virtual items of varying perceived value, Belgian authorities reasoned it mirrors gambling’s structure. This interpretation is crucial to understanding why they are effectively banned. They are not simply a means to acquiring digital goods; they’re classified under games of chance.
Because a license is required for any form of gambling in Belgium and because game developers do not possess such licenses, they are in violation of Belgian laws by offering loot boxes that can be acquired with real-world currency. Companies have essentially been caught in a legal bind and are facing hefty fines if they do not comply. The effect is a virtual ban on loot boxes unless they are acquired through playing the game or with virtual in-game currencies.
The enforcement actions were not focused on every single game ever made, but some of the games that were singled out are high profile titles such as: FIFA 17, Gears of War 4, Mario Kart Tour, Call of Duty: Mobile, and Phantasy Star Online 2. This demonstrates the Commission’s determination to enforce its laws.
The Impact of the Belgian “Ban”
The enforcement action from Belgium sparked a conversation about loot boxes and microtransactions in other countries. Belgium’s approach has become a reference point for regulators across the world that are grappling with these gaming monetization methods. While not all countries have followed suit, Belgium’s hard stance highlighted the potential ethical and legal issues surrounding the use of loot boxes in video games. This also caused many game developers to take a second look at their monetization models as well as creating different models based on regions.
It’s also important to note that many gaming companies have adjusted their games specifically for the Belgian market. Often, loot boxes are entirely removed, or they are made accessible only through in-game currency acquired by playing the game. This demonstrates the effect the Belgian legal stance has on the gaming industry.
Frequently Asked Questions (FAQs)
1. Has Belgium Completely Banned All Loot Boxes?
No, not all loot boxes are banned. The ban applies to loot boxes purchased with real money. Those that can be earned through gameplay or with virtual in-game currency are generally permitted, as they do not directly fall under the existing gambling laws.
2. What is the Specific Law That Bans Loot Boxes in Belgium?
There is no specific law that mentions the term “loot box.” Instead, it is the interpretation of the Belgian Gambling Act of 7 May 1999, particularly Article 4(2), that prohibits games of chance without appropriate licenses. The Belgian Gaming Commission has ruled that loot boxes purchased with real money constitute a form of game of chance.
3. What Other Countries Have Banned or Regulated Loot Boxes?
Besides Belgium, other countries like the Netherlands and Austria have also taken action against loot boxes. Some countries like Finland consider loot boxes purchased with real money as subject to gambling operator licenses. China has also implemented strict regulations on loot boxes and microtransactions. However, the laws and regulations vary by country.
4. Are Loot Boxes Illegal in the US?
Currently, loot boxes in the U.S. exist in a legal gray area. Courts have interpreted them differently across various jurisdictions. They are neither explicitly legal nor illegal but rather unregulated and could be potentially regulated at the state or federal level.
5. Why Do Some People Consider Loot Boxes a Form of Gambling?
Loot boxes are considered a form of gambling because they involve the expenditure of real-world money for the chance to obtain virtual items of varying value, mimicking a wager. The random element in the loot boxes adds an element of unpredictability, similar to traditional gambling. This is why regulators like those in Belgium have taken action.
6. What Games Have Been Banned in Belgium Due to Loot Boxes?
Games like Phantasy Star Online 2, FIFA 17, Gears of War 4, Mario Kart Tour, and Call of Duty: Mobile, among others, have faced scrutiny and had their loot box systems removed or disabled within Belgium due to the existing gambling laws.
7. What is the German Approach to Loot Boxes?
Germany’s age rating board, USK, now includes loot boxes, other in-game transactions, and online chat features within the “possible online risks” category when classifying a game. This indicates an increased level of awareness and potential regulation, but not an outright ban.
8. Why Are Loot Boxes Seen As Harmful to Children and Young People?
Loot boxes are seen as harmful because they can be addictive and can lead to financial problems. Young people struggle to understand the value of real money in games, leading to poor spending habits and potential normalization of risky gambling behavior.
9. Why Did the Netherlands Ban Loot Boxes?
The Netherlands banned loot boxes for similar reasons as Belgium. They see them as a “disguised form of gambling” that can be addictive and pose financial risks to families. Their gaming authority also ruled that they are in violation of gambling laws.
10. Are Microtransactions Also Banned in Belgium?
The ban is focused on loot boxes that are purchased with real money and offer a random element, not all microtransactions. Direct purchases of known virtual goods are generally not banned. The focus is on systems that have an element of chance.
11. Can I Still Buy Loot Boxes in Belgium?
You cannot generally purchase loot boxes with real money in Belgium. Most games have removed this feature in order to comply with local laws. Loot boxes that you can obtain through playing the game or using virtual in-game currencies are often still available.
12. Is Gambling Legal in Belgium?
Yes, but gambling in Belgium is heavily regulated. All gambling and betting, both online and land-based, requires a license. The number of licenses is limited, and online licenses are only granted to providers who already have a land-based license.
13. Is Belgium the Only Country That Considers Loot Boxes to be Gambling?
No, other countries like the Netherlands, Finland, and Austria also classify loot boxes purchased with real money as a form of gambling or subject to gambling licenses, showcasing a growing international consensus.
14. Are There Any Legal Risks for Companies Offering Loot Boxes in Belgium?
Yes. Companies face legal action and financial penalties from the Belgian Gaming Commission if they offer loot boxes that require real money purchases without the appropriate gambling license.
15. What Games Popularized Loot Boxes?
While Gauntlet (1985) was one of the early games to feature random rewards in chests, Overwatch is considered to have popularized the more modern loot box system.