And possibly prohibit them completely.
It appears like yet another nation is taking a close take a look at how loot boxes fit with existing law, as Brazilian authorities have actually accepted a demand to examine and possibly prohibit the questionable microtransactions.
The query is available in action to a suggestion by the National Association of Child and Adolescent Defense Centers (ANCED), which has actually submitted numerous suits versus video game business over their usage of loot boxes. ANCED argues that loot boxes are a damaging kind of betting – a prohibited activity in Brazil (through The Esports Observer).
Brazilian site The Enemy had access to the legal procedure including publisher Garena (understood for mobile fight royale video game Free Fire), and reported that business consisting of Activision, Electronic Arts, Riot Games, Nintendo, Konami, Valve, Ubisoft, Tencent, Microsoft, Apple, Google, and Sony have actually been pointed out in the claim. ANCED is obviously requesting for Free Fire’s loot boxes to be suspended till their usage by kids and teenagers can be properly evaluated, with a daily penalty of $4m real (£517k) for Garena if it fails to comply. It’s also asking for $1.5bn real (£193m) in compensation from Garena, and individual compensation of $1000 real (£130) for each child or adolescent user of its games.
Prosecutor Luisa de Marillac Xavier dos Passos determined that this would be a good opportunity for the Brazilian justice system to take a look at loot boxes, and possibly implement measures to help protect kids (such as the total removal of loot boxes). As such, no action has yet been taken against the named companies, but the judiciary will now investigate the issue independently of the current Brazilian government. The prosecutor felt ANCED’s requested payment amounts were a little out of touch with reality, however, so perhaps it’s unlikely we’ll see fines quite that large.
Brazil isn’t the only country considering bringing loot boxes under its current gambling laws: both the Netherlands and Belgium figured out that loot boxes count as gambling, and therefore violated existing gambling legislation. The UK Gambling Commission, meanwhile, has actually argued that loot boxes do not count as betting unless there is a “cash out” option, meaning legislation will have to be passed in parliament to introduce regulation. So far the DCMS Committee and House of Lords have argued that loot boxes should be reclassified as betting, and with a recent study finding a significant link between loot boxes and problem betting, the pressure is on for brand-new legislation.