Austria’s Supreme Court has ruled that loot boxes found in EA Sports’ soccer games do not constitute unlicensed gambling.  

A user brought a case against EA after spending nearly €20,000 (about $24,000) on in-game purchases between October 2017 and October 2021. 

He alleges the random reward packages in the game amounted to gambling. Given that Austria has a gambling monopoly with only one state-approved platform, he claimed he was entitled to a refund for his ‘gambles’ on loot boxes.

The Supreme Court, however, disagreed. In a ruling issued last month, the court “denied the existence of gambling” in the game.  

Game Requires Skill For Success

It said “the acquisition process of loot boxes cannot be considered in isolation from the rest of the video game for the purposes of gambling law assessment.” 

Austrian law prohibits players from wagering on games of chance, but allows players to pay money to play games of skill. 

As the game has other elements, including “chosen tactics and strategy, as well as (a player’s) dexterity in operating the controller,” the game does not fall into the category of a game of chance, and is therefore not gambling. 

Loot Boxes Remain Gray Area

While the ruling is a positive for game developers such as EA, it does not clarify whether loot boxes themselves constitute gambling. 

If the game were purely based on loot boxes, then it is likely the court would have issued a different ruling. It stated, “A game of chance is a game in which the outcome depends solely or predominantly on chance.”

“This would be the case, for example, if no legitimate, rational expectation about the outcome develops, but rather bets are ultimately placed on this or that particular outcome based solely on hope or an irrational attitude.”

Countries Struggle With Regulation

Other European countries have taken a tougher stance on loot boxes. In Belgium and the Netherlands, the random rewards in exchange for money are prohibited.  Game makers have had to adapt or withdraw games from the two countries.

Spain, meanwhile, launched a campaign against loot boxes last year. The campaign primarily focused on loot boxes as a form of underage gambling. An ad titled, “Less Loot Boxes, More Real Gamers,” lamented that, “Instead of rewarding skill or effort, many (games) promise uncertain rewards in exchange for real money.”

In Germany, loot boxes must carry warnings and probability disclosures and may influence age ratings. 

Outside Europe, similar measures are in place in the US, China, and South Korea, with other countries considering stricter rules. Brazil will introduce a ban on the sale of loot boxes to minors later this year. 

Australia and the UK have proposed similar measures, but for now, place higher age ratings on games that are deemed risky. EA Sports’ games are generally not considered in this category, although the company has faced other lawsuits in the past. 

The ruling in Austria will be welcomed by the company and allows it to continue selling the packs in its games.