The city of Bremen in Germany is considering a proposal to ban loot boxes in video games. Read on to learn about the proposals from the governing coalition and opposition party, and insights of a legal researcher covering the development.
German Parliament Undergoes Oral Proceedings on Loot Box Bans in Video Games
Coalition Seeks to Ban Loot Boxes, Social Casino Games, Livestream of Games Featuring Loot Boxes
- [1] English transcription of proposal obtained from Leon Y. Xiao's Mastodon
German news outlet Buten un Binnen reported that the governing coalition consisting of the Social Democratic Party of Germany, the Greens political party, and the Free Democratic Party, all presented a motion in the Bremen state parliament, proposing the ban of loot boxes in video games.
The proposal included a prohibition on loot boxes, which are viewed by the coalition as a form of gambling due to their randomly generated content. Dariush Hassanpour, a politician supporting the ban, argued that loot boxes can contribute to gambling addiction and pointed out instances where professional gamers spend six-figure sums to get their desired content from loot boxes.
The proponents of the ban believed that such measures are necessary to address potential harm associated with loot boxes. Apart from a ban on loot boxes, the coalition motioned for the prohibitions on social casino games, the sale and purchase of virtual currencies, and livestreaming of games featuring loot boxes.
Opposition Proposes Stricter Regulations Over an Outright Ban
- [2] English transcription of proposal obtained from Leon Y. Xiao's Mastodon
In response, the Christian Democrats Union, an opposing party, advocated for stricter regulations rather than an outright ban. Their proposals included ID verification before in-game purchasing, monthly deposit limits, bans on loot box advertisements to minors, loot box probability disclosure, warning about risks, and enhanced research on risks associated with loot boxes, among others.
Proposals Are Not Yet in Effect
The opposition's proposals were rejected, and the coalition's motion passed in the Bremen state parliament. Researcher and legal expert Leon Y. Xiao noted that this development implies the state senate will advocate for the coalition's proposals at the federal level.
Xiao clarified that while these changes are approved at the state level, they may not come into effect nationwide immediately, if at all. "Again, just a reminder, the State Senate will now go and advocate for those at the federal level. These will NOT be coming into force any time soon, if ever," wrote Xiao on SNS platform Mastodon.
As noted by Xiao, Germany has seen regulatory changes related to loot boxes, with an amendment requiring the USK (Organization responsible for video game ratings in Germany) to label games with loot boxes and consider their presence in age rating decisions under the JuSchG (Germany's Protection of Young Persons Act).
Other Countries' Regulations on Loot Boxes
In July 2023, the UK agreed on the restriction of loot boxes. Ukie, UK Interactive Entertainment, a non-profit video game trade organization, introduced new guidelines that regulates the use of loot boxes in games. Among them were the directive of game companies to implement precautions to limit access to loot boxes for minors, loot box feature and probability disclosures, and best practices concerning age verification processes to access loot boxes.
Likewise, Australia enforced mandatory M-ratings for games that contain "gambling-like content," taking effect in September this year. The Australian parliament implemented stricter regulations and classifications for games that contain in-game purchases, loot boxes, and gambling.
Source:
Buten un Binnen: Glücksspiel? Bremer Senat will Lootboxen
in Videospielen verbieten
German state proposes ban on loot boxes
[1], [2] Leon Y. Xiao's Mastodon thread
Dringlichkeitsantrag der Fraktionen DIE LINKE, der SPD und BÜNDNIS 90/DIE GRÜNEN | motion by the SPD, the Greens, and FDP
Dringlichkeitsantrag der Fraktion der CDU | motion by the CDU parliamentary group
