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Are loot boxes really gambling-European authorities think so

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Over the recent months there has been quite some turmoil regarding various game developers and their provision of the “loot boxes”, a certain feature that lets the gamers win an in-game item or a game skin at a random chance. While loot boxes have been existing for years, only in September 2018 the controversy in opinions started to be seen. The main reason behind this was that previously game developers were limiting loot box items to various skins, things that do not really have an impact on the game result. In other words, if a player wanted to open a loot box in Counter-Strike GO, he might have received a weapon skin worth over $1,000. Obviously, such expensive in-game items could only be unlocked by opening a loot box, and could easily be exchanged for real money. Considering this, many people would regard such activity as a type of the esport betting or some sort of in-game built gambling, even this game skin would not be any better than a default one, it is just rare. In contrast, newer versions of the loot boxes would provide players with the features that can hardly be obtained without paying.

Are loot boxes gambling?
When thinking of gambling, casinos are the first thing that pop in our mind. Let us quickly analyse the difference and similarities shared by the concept of the loot box and casino. It is clear that when claiming a bonus from an online casino and playing some online slot machines or any other game, a player is expecting both the experience and the chance for winning. Quite a different case happens when opening a loot box. A gamer is not really expecting to get any sort of experience as the experience is provided by an actual game. Besides that, a gamer is certainly provided with a payout in a form of an item. In most of the cases, however, the value of the item will be significantly lower than the cost of opening a loot box.

While the technical aspects are quite different, the concept of a loot box does seem to remind us of good old games of chance. First of all, a player has absolutely no impact on the final outcome. Unlike poker, which is often considered a game of skill, both roulette players and loot box openers do not have any impact on the outcome of their bet. Secondly, the math behind loot boxes is rather simple. Imagine it costs 10 candies to place a bet, and you have a chance of winning anywhere between 1 and 1000 candies, would you consider such activity gambling? Most probably.

European authorities fight loot boxes
By now Dutch and Belgian Gambling Authorities have stated that some loot boxes are actually pure gambling and the game developers will be required to apply for the local gambling license in case they want to continue offering loot boxes. Even though games like PUBG, FIFA and DOTA 2 are not actually allowing the players to sell their in-game items and skins for money that can be cashed out, many gamers can still easily find an option to sell their items outside of the game. Most importantly, it became clear that such items carry a value. As a result, Dutch and Belgian authorities might exercise penalties against the game develops as of June 20th 2018 in case these develops fail to either remove the loot boxes or apply for the local regulation. Besides that, the authorities want to make this regulation adopted in other EU member states.

How about US?
Until now the US authorities have been considering loot boxes as a fully legal mechanism that is not related to gambling. However, the main debate in the US has been going on about how such games should be labelled and whether the gamer’s age should be restricted.

The final thought
While it is clear that loot boxes represent a great income stream for the game developers, we also have to understand that the whole experience of opening a loot box is built on excitement and a feeling of getting a large payout. However, unlike casinos that have age restrictions, loot boxes are targeting a vulnerable part of our population – the youngsters. In many cases EU regulations have been much more consumer-friendly than the ones from the US, and it certainly interesting to see how these regulations will develop in the remaining part of the 2018.


Source: Latest News on European Gaming Media Network

George Miller (Gyorgy Molnar) started his career in content marketing and has started working as an Editor/Content Manager for our company in 2016. George has acquired many experiences when it comes to interviews and newsworthy content becoming Head of Content in 2017. He is responsible for the news being shared on multiple websites that are part of the European Gaming Media Network.

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SOFTSWISS Wraps Up SiGMA Europe 2024 with Key Achievements

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SOFTSWISS has successfully wrapped up its participation in SiGMA Europe 2024. This final major event of the year highlighted the achievements and progress of the iGaming industry over the past months. With a dynamic presence and the award-winning concept ‘Grab Success in iGaming’, SOFTSWISS made a lasting impact over the three action-packed days of the conference.

The SOFTSWISS booth became a nexus for clients, partners, and industry professionals, sparking new connections and fueling discussions on the latest trends. Among the highlights was the unveiling of the iGaming Trends Report 2025, offering a forward-looking analysis of the industry’s trajectory. Positioned as the ‘mother of all conferences’, SiGMA Europe proved the ideal stage for the report’s launch, with all 27,000 attendees able to grant complimentary access to this vital resource.

“iGaming is growing at a rapid pace, and for many, the main challenge is to keep up with this growth. SOFTSWISS takes a much broader view in this regard: it is important for us to understand where iGaming is heading and anticipate trends in order to strengthen our leadership positions,” said Vitali Matsukevich, COO at SOFTSWISS.

Before the expo officially opened, SOFTSWISS was honoured as the Best Platform Provider at the SiGMA Europe Awards 2024. This accolade is a testament to the company’s commitment to delivering robust, innovative technology solutions that empower iGaming operators worldwide.

One of the event’s most highly anticipated discussions, “How to Choose a Secure and Safe Crypto Casino,” featured Vitali Matsukevich among its expert panellists. The session drew a full house, reflecting the high interest in the future of crypto casinos amidst the evolving global economic and political landscape.

During the discussion, Matsukevich shared his deep knowledge and insights on leveraging blockchain technology to ensure smarter, safer choices for consumers in the crypto casino space. His expertise underscored SOFTSWISS’ position at the forefront of innovation in this fast-growing market segment.

SiGMA Europe 2024 provided a platform not only to showcase SOFTSWISS’ accomplishments but also to reaffirm its role as an industry leader. Already preparing for the next major event, ICE Barcelona 2025 in January, SOFTSWISS will once again present its cutting-edge tools and insights to operators worldwide.

 

About SOFTSWISS

SOFTSWISS is an international technology company with over 15 years of experience in developing innovative solutions for the iGaming industry. SOFTSWISS holds a number of gaming licences and provides comprehensive software for managing iGaming projects. The company’s product portfolio includes the Online Casino Platform, the Game Aggregator with over 23,500 casino games, the Affilka Affiliate Platform, the Sportsbook software and the Jackpot Aggregator. In 2013, SOFTSWISS revolutionised the industry by introducing the world’s first Bitcoin-optimised online casino solution. The expert team, based in Malta, Poland, and Georgia, counts over 2,000 employees.

The post SOFTSWISS Wraps Up SiGMA Europe 2024 with Key Achievements appeared first on European Gaming Industry News.

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Casino Guru and Mindway AI advance RG self-test game in time for SGW24

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Casino Guru, the leading online casino database and a champion of informed play in the gambling industry, continues to build upon its responsible gambling partnership with Mindway AI, a prominent RG tech and solutions provider focusing on offering actionable real-time insight into consumer gambling behavior, by launching the revised campaign focused on the Gamalyze self-assessment game, in time for Safer Gambling Week 2024 (SGW24).
The game, a reinvention of the self-test, is a card game that allows players to analyze their own gambling habits through engaging and anonymous play. Thanks to a dedicated widget that welcomes players on the home page, the game is available directly on Casino Guru’s website and is also featured as “Game of the Week.”
To help further improve this year’s reach, Casino Guru has teamed up with several casino partners, including CasinoFriday, Shotz, Roman Casino, giving players the opportunity to explore the game while gaining deeper insights into their own gambling habits.
Casino Guru has reached out to subscribers with additional details about the campaign, aiming to significantly expand its impact and raise awareness among a larger audience.
Previous campaign iterations received 1,800 gameplays each, and Casino Guru is now determined to improve on this milestone.
Šimon Vincze, Casino Guru’s Head of Sustainable & Safer Gambling, shared the following: “I am excited about this year’s upgrade to the campaign and can’t wait to see the results. Together with Niamh from Mindway AI, we were looking for ways to attract more people to play the game and learn more about the risks involved as a natural part of their gambling experience. The upgrades we introduced are promising, and we are confident we can increase the numbers significantly.”
Once the self-test game is completed, Mindway AI provides players with detailed feedback on their gameplay, and analyze certain behavioral markers, such as how players respond to rewards and losses, the frequency of their wins and how risky their gambling behavior is.
Ultimately, the assessment seeks to improve people’s understanding of their own risk-taking behavior, and what they can learn from it. Both companies are dedicated to bringing the concept of safer gambling to the forefront of players’ awareness, and this innovative collaboration allows them to achieve this goal in a creative and enjoyable manner.
To access the widget and test your gambling style, head over to Casino Guru’s home page and click on the widget in the upper right corner of the screen, or check the “Game of the Week,” which will feature Gamalyze throughout SGW24.
Casino Guru and Mindway AI first introduced the campaign several years ago, boosting its reach in a player-centric way in time for SGW24.

The post Casino Guru and Mindway AI advance RG self-test game in time for SGW24 appeared first on European Gaming Industry News.

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Expert comment: Safer Gambling Week 2024

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Safer Gambling Week commentary

As a company focused on generating high-quality, responsible gambling traffic to our operator partner sites, safer gambling is a daily consideration for QiH Group. We recognise Safer Gambling Week as a valuable opportunity to stay engaged with the broader industry conversations and to hear from the community on responsible gambling.

As affiliates are often an initial touchpoint for customers, our priority is maintaining a safe, compliant environment that benefits our partners and, ultimately, their customers.

We believe in supporting a balanced approach where gambling remains what it should be: safe, enjoyable entertainment.

– Andrew Lee, COO, QiH Group

Being a firm of licensing solicitors, one of our principal roles is helping our clients stay compliant with the Licensing Conditions and Codes of Practice, and the licensing objectives, so responsible gambling is something we focus on every day for clients.

It is important that we raise awareness of safer gambling and signpost the professional help and support services that are available to those who need it – ensuring the millions of people who enjoy gambling responsibly continue to do so in a safe environment.

– Nick Arron, Lead Solicitor, Poppleston Allen

The post Expert comment: Safer Gambling Week 2024 appeared first on European Gaming Industry News.

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