Austrian Supreme Court rules that loot boxes do not constitute gambling

The Austrian Supreme Court has ruled that loot boxes present within video games do not constitute gambling under their gambling laws.

This comes after a player attempted to reclaim nearly €20,000 ($24,000) spent on in-game purchases in a football video game.

The plaintiff spent money in the game on loot boxes between 2017 and 2021, with the purpose of acquiring digital players in order to enhance his virtual team in the game.

The court, however, deemed that loot boxes are separate from the broader game, especially when evaluating if they meet the gambling criteria under section 1, paragraph 1 of the Gambling Act.

During the case, the plaintiff stated that, due to him not having a necessary license, opening loot boxes should be deemed illegal gambling.

“The player can, through their own skills – namely, their chosen tactics and strategy, as well as their dexterity in operating the controller – control the course of the game with a probability suitable for success, thus establishing a rational expectation of winning.” Said the court upon their ruling, which player skill factor was the ultimate in the overall outcome of the game.

Loot boxes are becoming problematic in gaming

The rise of the loot box in video games has seen the sector gravitate towards in-game purchases.

A recent study conducted in Norway found a correlation between children who play a lot of video games and a higher risk of developing gambling problems in later life.

Games that focus on loot boxes and skins could see those aged between 12 and 17 encountering gambling issues into adulthood.

In October, Brazilian lawmakers banned those under the age of 18 from buying loot boxes.

President Luiz Inácio Lula da Silva made the decision, and it will come into effect this year, with the first safeguards taking place in March.

“Promotion and marketing of gambling, fixed-odds betting, lotteries, tobacco products, alcoholic beverages, narcotics or products prohibited for sale to children and adolescents,” according to Law 15211, which protects children in the digital environment.

Featured Image: Gugerell via WikiCommons / CC0 1.0 Universal

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