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Belgium Threatens Criminal Prosecution Over Loot Boxes

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Belgian Gaming Commission lays groundwork for prosecution as Belgian justice minister meets with stakeholders to find an alternative

 

The Belgian Gaming Commission (BGC) has suggested that criminal prosecution should be undertaken against Electronic Arts, Valve, and Activision Blizzard over loot boxes in their respective games.

With the release of its research report on loot boxes,the BGC has clearly defined the parameters of what does and does not constitute gambling, and the ways in which FIFA 18, Counter-Strike: Global Offensive, and Overwatch each contravene the legislation.

The report lays out recommendations of what steps should be taken next to handle the issue.

Although the BGC has suggested criminal prosecution first and foremost, it will not proceed until Belgian minister of justice Koen Geens has met with industry stakeholders to begin a dialogue on the issue.

Speaking with GamesIndustry.biz, BGC director Peter Naessens said: “We are going to take all preparatory measures for the drafting of police reports, but it’s not going to be tomorrow. There is a certain amount of time for the minister of justice, but it’s not unlimited.”  – Peter Naessens, Belgian Gaming Commission director

Other recommendations from the BGC include developing specific permits for video games that feature loot boxes, and marking them accordingly. This is coupled with the suggestion of age verification in stores when purchasing codes or gift cards, and a principal ban on minors being able to purchase games featuring the mechanic.

Regarding distributors and operators, the BGC recommended that a clear indication of winning odds be provided and that its technical assessment team be granted complete control over the random number generators used for loot boxes.

Additional provisions over player data and payments were recommended, along with the introduction of a user spending limit.

License holders such as FIFA and Disney were also pulled up by the BGC, which suggested such companies pay closer attention to the sort of mechanics appearing in their games.

Unlike the Netherlands’ recent decision regarding loot boxes, the Belgian ruling does not consider the option to sell or trade the contents of loot boxes as an important factor when determining whether or not the mechanic might constitute gambling.

The BGC defines gambling as any game whereby a wager can lead to loss or win for at least one of the players, and where chance may even have a secondary role in the course of the game, the winner, or size of the winnings.

While its definition may appear less applicable to loot boxes than the Netherlands Gaming Authority, the BGC clearly defined the many ways in which the offending games are in breach of the legislation.

Taking Overwatch as an example: using real money, players can purchase loot boxes containing random collectable items, which constitutes a wager. The chance of a win or a loss concerns the wager itself versus the value of the items in the box. Despite being entirely aesthetic and not tradeable outside of the game, the items have player-ascribed value that is altered by artificial scarcity, limited edition items, and the four categories of rarity.

As Blizzard does not allow players to purchase credits directly, they are encouraged to purchase loot boxes containing in-game currency in order to obtain items faster than they would by just playing the game.

“The chance of losing your wager (the cost of the loot box) is, of course, ever-present now that testimonies and research have shown that players have a substantial chance of obtaining an object or item that they already own,” the report reads.

“Both in the purchase of loot boxes and in the entire operation of the game, all of this can lead to pure manipulation of individuals or groups of players” – Research Report on Loot Boxes, Belgian Gaming Commission

The BGC calculated that, should a player wish to collect every item, they would have to open somewhere between 1,300 and 1,600 loot boxes.

Considering the aspect of chance, things become a little murkier, though the BGC is operating on the understanding that players believe the content is determined by chance, even if there were no odds communicated directly.

“Both in the purchase of loot boxes and in the entire operation of the game, all of this can lead to pure manipulation of individuals or groups of players,” the report reads. “The line between encouragement and manipulation is sometimes difficult to differentiate in an online environment where one party (game manufacturer/game platform) records almost everything and the consumer who plays the game rather passively from this perspective.”

Blizzard did not respond to the commission’s requests for more information.

Many within the games industry have criticised the assumption that loot boxes which do not contain items of monetary value outside of the game constitute gambling, drawing comparisons to collectible card games such as Pokémon or Magic the Gathering.

“It might be considered as gambling, but in our legislation there is an exception for it,” Naessens told GamesIndustry.biz. “So Pokémon cards, if they are going to introduce a wheel of fortune, roulette, or a blackjack game in order to determine the contents, it will also be problematic and we will examine it as well.

“But in our legislation, card or party games are exempt from gambling [legislation]. If Pokémon cards were to introduce the gambling element to their game, it would be very problematic as well.”

Essentially, the BGC argues that players are “lured into betting money through loot boxes with a range of techniques”.

When making the decision, the BGC considered aspects such as social behaviour monitoring, as demonstrated with the “exploratory” patent filed recently by Activision which is designed to encourage microtransaction spending through player monitoring.

“If [Pokémon card] are going to introduce a wheel of fortune, roulette, or a blackjack game in order to determine the contents, it will also be problematic and we will examine it as well.” – Peter Naessens, Belgian Gaming Commission director

Other considerations include the “fusion of fiction and reality”, highlighting the use of the footballer Cristiano Ronaldo to advertise the most expensive loot boxes in EA Sports’ FIFA and “whitewashing the behaviour of the super-rich in the football world or the possibility of match-fixing”.

Tying into this point is the use of limited edition items to drive loot box sales, and the use of game-specific currencies that are “psychologically very sophisticated” and fully disconnect the value of real money from the value of in-game currency.

Game operators failing to enforce a spending limit, combined with readily giving away free loot boxes in order to attract players was also considered a dangerous aspect of the mechanic.

Despite a recent assertion from Electronic Arts CEO Andrew Wilson that FIFA 18 loot boxes do not constitute gambling, the clock is ticking and the publishing giant, along with Valve and Activision Blizzard, will invariably have to make changes or forgo the Belgian market entirely.

Although progress will be slow, momentum is gathering as gambling legislators from around the world turn their gaze towards the issue of loot boxes. According to Naessens, BGC has been in contact with officals in Spain, Germany, Finland, America, and Asia.

 

Source: gamesindustry.biz


Source: European Gaming News

European Gaming News

Could the Gambling Commission ban wagering requirements?

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Wagering requirements; whether you love them or hate them, with the Gambling Review well underway, there’s never been a better time to debate if they still have a place in modern gambling and whether the upcoming review will ban them once and for all. But first, let’s look at their development and why they are a contentious issue in the industry. 

What are wagering requirements?

Wagering requirements are a common term and condition attached to a bonus that prevents players from taking a promotion and withdrawing it immediately. They are applied differently by each gambling brand. Some, like PlayOJO, Paddy Power, MrQ and Betfair, have revolutionised the casino scene by offering no wagering bonuses. In contrast, others take the predatory route and list bonuses with up to 100x requirements (the average is around 30x).

The requirement is the amount a player must wager at the casino before any winnings made with a bonus are valid for withdrawal. In the case of a £100 bonus, a 30x requirement would mean a player must wager a total of 100×30=£3,000 before they could withdraw any winnings. Most players would easily decimate their winnings before fulfilling the condition and, as most bonuses expire within 7-14 days, may well be forced to play for periods, or at times, they otherwise might not.

Why do wagering requirements exist?

In the early days of online casinos, bonus hunting among players became widely popular. It led to forums where players shared information on where and how to profit from the best welcome bonuses, earning money from the available offers available and never playing at a site again.

As casinos began to notice players taking bonuses and withdrawing without using them fairly, they combatted the practice with wagering requirements and other terms, such as the ability to withdraw a bonus and any winnings made if an account was suspect of this activity.

However, with no limits or official licensing rules to regulate wagering requirements at that time, things soon got out of hand as operators set high limits that were and still are unattainable to most players. Additionally, in many cases, the terms and conditions were not clearly displayed or explained, leading to the confiscation of bonuses and winnings without players understanding how or why they’d fallen foul of the casino’s rules.

Wagering requirements under fire with UKGC

By 2014, and following a flood of player complaints, the Gambling Commission weighed in, creating the Gambling (Licensing and Advertising) Act which prescribed operators were to advertise their bonus terms and conditions clearly and explain them to players. This led to some reducing their requirements to more feasible levels. However, not all operators followed suit, hence why we’re still discussing wagering requirements today.

More recently, in February 2022, the UKGC set its sights on reforming wagering requirements again, issuing new guidance regarding fair and transparent terms and practices, which acknowledged that wagering requirements could lead to excessive play, not in line with social responsibility rules for operators. 

The new guidance rules cited that licensees used potentially unfair terms, with examples including:

  • “terms that allow licensees to confiscate customers’ un-staked deposits
  • terms regarding treatment of customers’ funds where a licensee believes there has been illegal, irregular or fraudulent play
  • promotions for online games that have terms entitling a licensee to void real money winnings if a customer inadvertently breaks staking rules
  • terms that unfairly permit licensees to reduce potential winnings on open bets.”

It also stated that the Commission was aware of:

  • “terms and conditions that are difficult to understand
  • welcome bonus offers and wagering requirements which may encourage excessive play.”

While the guidance did not contain rules for abolishing or limiting wagering requirements, they instructed licensees to review their terms and conditions to ensure they fit consumer protection laws and that; “The LCCP requires rewards and bonuses to be constructed in a way that is socially responsible. Although it is common practice to attach terms and conditions to bonus offers, the Commission does not expect conditions, such as wagering requirements, to encourage excessive play.”

Will wagering requirements be banned?

With the Gambling Review white paper currently overdue and keenly expected by all industry stakeholders, many wonder if it will cover wagering requirements or, more specifically, exclude them from casino practice. The Gambling Review aims to update the 2005 Gambling Act, fit for the modern age, and wagering requirements would undoubtedly slot into the remit of what’s being discussed, which includes greater player protections and affordability checks.

While it’s clear that some big-name operators and affiliates like No Wagering are pioneering the way in bringing zero wagering bonuses to players, many sites have not followed suit. This is despite clear evidence that players favour fairer bonuses (PlayOJO is one of 39 brands operated by the same parent company, it is the only one with zero requirements, and it’s the most successful of all, according to the company).

Realistically, we’re not sure that the new gambling regulations will ban wagering requirements completely (as we covered earlier, they do exist for a reason), but it certainly wouldn’t be beyond the imagination for there to be a maximum cap applied in the view that excessive requirements equate to excessive play.

What’s next for operators and bonuses if wagering requirements are banned?

Bonuses are one of the most important factors for players in picking between casino sites, and they make players feel lucky to score something for free straight off the bat (even if the wagering requirements mean this is not really the case). 

If wagering requirements are banned, operators unwilling to offer bonuses without wagering requirements will have to return to the drawing board and reimagine rewards, especially welcome offers. Alternatively, they could begin competing based on other USPs, such as focusing more on the casino product to pull in the punters by offering unique games, making space for indie developers, having instant withdrawals, or gamified loyalty benefits and better loyalty clubs.

Moreover, it would present a fantastic opportunity for remote operators to move away from the tired system of matched deposit bonuses towards more exciting and fresher ideas like promo wheel spins, mystery gifts on first deposits, prize draws and so on. With brands including PlayOJO, Paddy Power, MrQ and Betfair already doing this, operators do not lack a blueprint to success, just the gumption to embrace a new model.

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Bulgaria

Betway Bulgaria officially launches, offers live and bet-builder options

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Another company has officially launched its activities in the growing niche of online betting in Bulgaria. But here we are not just talking about another operator licensed by national institutions, but about a leading brand worldwide. Betway is one of the largest bookmakers in Europe and globally, and the fact that it already offers its services in Bulgaria speaks positively about the development of the gambling business in the country.

Indications of an increase in the size of the industry appeared last year, when several operators received a permit to operate under Bulgarian jurisdiction. It is unlikely that this process will end with the official launch of betway bulgaria, rather the brand entering the country can be perceived by international operators as a positive assessment of the market in Bulgaria. What can we find at Betway besides the obvious – increased competition and of course more choice for consumers?

What do we find in the sports section?

Sports betting – this is the leading sector of the company, which started operations in 2006. The brand is associated with a number of teams in Europe such as Tottenham, Atletico Madrid, Leicester, Alaves, Belenenses, Werder, etc. Of course, the top championships in Europe are present in the latest betting platform, but that’s not all. Betway offers the opportunity to make predictions at less popular UEFA championships. The fans of the Bulgarian championship have options too. All matches of the First League are present in the bookmaker’s menu, and are offered with dozens of choices for each of them.

Real-time bets and long-term combinations

Live bets are a big thrill for many players. This option is present at Betway, and this also applies to the mobile version, of course. It is not difficult to detect current events – they come first when loading the platform. And with them the bookmaker really comes up with interesting offers, some of which are rare on the Bulgarian market. The outcome of the bets become clear in literally seconds if the next goal market or one of the performance options is selected.

In addition, the company accepts predictions with a much longer horizon. It is now standard to bet on who will be the champion in England, Spain, Italy or Germany. However, there are also specific markets and selections for certain teams – will Barcelona take the trophy this season, will Liverpool reach the final in at least one of the tournaments in which it participates, etc. And if users don’t find what they’re looking for in these offers, they can always turn to the betting menu. The bet-builder is still limited to one match, from which we can choose two or more selections until the desired odds are formed. This is the most appropriate way to optimize the bet according to personal preferences and therefore it is increasingly preferred by the players.

Betway’s first steps on the Bulgarian market are impressive. And this is just the beginning, we can expect even more in the near future.

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European Gaming News

EveryMatrix inks RGS Matrix agreement with Wild Boars

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EveryMatrix announces the second RGS Matrix partnership with Wild Boars, newly launched gaming studio that aims to bring creative storytelling and a fresh feel to the gaming industry.

Launched in 2019 as EveryMatrix sixth standalone solution, RGS Matrix enables gaming development teams to distribute, manage, and report upon a proprietary game product portfolio.

This ‘out of the box’ remote gaming server was built on an open architecture and caters for outstanding player experience, consistent deployment, and quicker content integration.

Mathias Larsson, Managing Director of RGS Matrix, says: “This is our second RGS Matrix agreement and it brings me a lot of joy to know that our solution starts gaining momentum in the market. Our remote gaming server aims to help the new generation of game builders by providing all the means to create, design, distribute and manage games.

“The team of Wild Boars is experienced, skilled and highly creative. I am looking forward to seeing their games live and appreciated by players in many countries.”

Oleksandr Yermolaiev, Managing Director of Wild Boars, comments: We truly believe that choosing a right partner is crucial for success. For us, RGS Matrix and its remarkable team is just that partner. We are excited to use EveryMatrix solution, focus on what we do best and bring our innovative games to a wide range of operators, territories and players. RGS Matrix is dashing ahead and we are happy to join the ride.”

RGS Matrix powers slots and table games, and is currently certified for Malta, Latvia, Lithuania, Estonia, Sweden, Spain, Denmark, Romania, and Colombia, with many jurisdictions to come in the upcoming years.

 

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