FTC to investigate loot boxes in video games

gabhernandez Published 03/12/2018

The Federal Trade Commission has finally agreed to look into the matter of loot boxes in video games.

Loot boxes have long been a controversial issue in video games. Players can spend real world money to purchase loot boxes, only to get a randomized prize. Prizes received are often common and easily acquired, but there is a slim chance at a more rare and prestigious award. The practice has drawn subsequent comparisons to gambling.

The topic of loot boxes in gaming was heated up by Star Wars Battlefront 2, which offered boxes that would give a chance to acquire characters and enhancements that affected gameplay and would have taken many hours to achieve through gameplay.

The Entertainment Software Association released a statement this week denying that loot boxes represented gambling. “Loot boxes are one way that the player can enhance the experiences that video games offer. Contrary to assertions, loot boxes are not gambling,” the ESA said. “They [loot boxes] have no real-world value, players always receive something that enhances their experience, and they are entirely optional to purchase.”

Agencies opposing loot boxes argue that they represent a games of chance, just the same as gambling, and that they’re often directed towards children. Legislation prohibiting advertising cigarettes to minors is often used as a point of comparison.

Some countries outside the United States have already considered the subject, in some cases legislating against loot boxes. Belgium declared loot boxes a form of gambling and is criminally investigating Star Wars Battlefront 2 developer Electronic Art’s participation in the practice.

As part of the investigation the FTC will call both game companies and relevant industry agencies in to discuss the subject.

If loot boxes are found to be deceptive or unfair, the FTC may choose to regulate the industry.

Read Also

Movies & TV

Will The Batman Part II Be Delayed Again? Zachary Roberts The Batman: Part II has already been delayed three times. It was supposed to come out this month, actually. Three delays later, though, and it's on the slate for February 2028, which would be almost six years to the month after the first movie. Is it going to be delayed again? Movie fans live in fear of that very thing in these uncertain times. Any piece of art, including video ...

Kick

Nigerian Musician Davido Joins Kick: Here’s What We Know Khizar Mundia Afrobeats star David “Davido” Adedeji Adeleke has joined livestreaming platform Kick and expressed his intention to begin a new part of his career. Kick has previously revealed that the platform has stepped back from signing streamers with large deals and also stopped encouraging gambling content. Both announcements were met with widely positive reactions, as there was much criticism regarding casino streaming and many people believed huge deals led to streamers ...

Dota 2

BLAST SLAM VIII Finals predictions and preview Michael Hassall It’s been a long road, but after a strangely-formatted group stage, and a decidedly anticlimactic playoffs, we’re down to the final three teams in BLAST SLAM VIII. The finals are today (Oct. 11) and we’ll see the premier teams in Dota 2 clash. Perhaps disappointingly, we’re not seeing a new wave of top-teams at the pinnacle of Dota 2 competition, with the three final teams being the same trio we’ve ...

Twitch

Kai Cenat Reveals Japan IRL Tour and Says He Wants To Go to Space Khizar Mundia Twitch star Kai Cenat has recently expanded his content to include IRL tours, and Japan is next on the list of places he will be heading it seems. The American kicked off his Exploring the Unexplored IRL series with Iceland, reportedly becoming the first streamer to broadcast from inside a volcano. This was a massive accomplishment, but just a few days later Cenat became embroiled in controversy with Reginald “Reggie” Travers. ...

News

NFL petitions U.S. Supreme Court for clarity on prediction markets Michael Hassall The heat is officially on for prediction market operators such as Kalshi and Polymarket as the NFL, one of the United States’ biggest sports leagues, is asking the U.S. Supreme Court to weigh in on the classification of prediction markets. In a brief filed late on Thursday (Oct. 8), the National Football League (NFL) backed the state of New Jersey’s request for the U.S.’s highest legal entity to review whether ...

GTA

Lacy Reveals GTA 6 Marathon Plans and Monthly Income Breakdown Khizar Mundia Nick “Lacy” Fosco recently made headlines after announcing he would disable Twitch ads on his streams. Now, the streamer has revealed plans for an upcoming GTA 6 marathon, alongside a breakdown of his monthly earnings and expenses.. Lacy is in the news frequently, whether it's because of his relationship, drama with other streamers, or even leaving CORE. The creator recently also limited his Twitch ads significantly after starting, saying that ...

News

Crypto Casino Stake To Launch In Alberta, Canada Khizar Mundia Stake co-founder Eddie Craven made an X post announcing that the casino has secured licensing approval in Alberta, Canada, and will be launching its services in the new location imminently. Crypto casino Stake is one of the most popular gambling sites, with livestreaming platform Kick having been a major marketing force for it over the years. Both platforms are owned by co-founders Eddie Craven and Bijan Tehrani. While Kick has ...