The Dutch Gaming Authority (KSA) first issued an administrative order regarding loot boxes in 2019, asserting that these features represented unauthorized gambling under national gaming laws. This decision followed a 2018 study that prompted the KSA to instruct all video game publishers to eliminate loot boxes from their offerings due to indications that such mechanics could lead to gambling addiction later in life. Although most companies adhered to this directive, EA chose to challenge the KSA's ruling.
Recently, the District Court of The Hague has ruled in favor of the KSA, mandating that EA and its Swiss subsidiary face fines of €250,000 weekly for every week they continue to offer loot boxes in the FIFA series, with a maximum penalty of €5 million. EA has until November 5 to comply with the court's ruling, which was delivered on October 15. This means that the loot boxes must be removed from games such as FIFA 19, 20, and 21 by that date.
Loot boxes are in-game features that allow players to purchase 'blind boxed' items using either virtual or real-world currency, resulting in random virtual items granted to users. EA incorporates this mechanic in FIFA Ultimate Team (FUT), enabling players to buy packs that contain randomly selected players for their teams. The KSA argues that because the player selection is based on chance and cannot be influenced by players, FUT qualifies as a form of gambling. Additionally, some players have significant value and can be traded among gamers.
The regulator maintains that this practice violates the Gambling Act, which prohibits consumers from winning a prize or reward unless it is provided by a licensed operator. KSA Chairman René Jansen stated, "The KSA believes it is crucial to shield vulnerable groups, such as minors, from exposure to gambling. For that reason, the KSA supports a strict separation between gaming and gambling. Gamers are often young and therefore particularly susceptible to developing an addiction. As such, gambling elements have no place in games."
The District Court of The Hague confirmed that the KSA correctly categorized loot boxes as a game of chance, supporting its decision to impose penalties. The court noted, "The KSA has rightly concluded that the definition of games of chance within the meaning of the Gambling Act has been met. In view of this qualification and the prohibition on offering online games of chance without a license, the KSA is authorized to proceed with enforcement."
Currently, all forms of online gambling are banned in the Netherlands, but this stance is set to change with the introduction of the Remote Gambling Act on March 1 next year, which will establish a regulated market and allow operators to seek iGaming licenses. This legislation was initially scheduled to launch in July 2020, but a delay in November 2019 pushed it to January 1, followed by an additional postponement due to the COVID-19 pandemic, resulting in the new launch date of March 1 and a market rollout planned for September.
