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Blockchain could help legalise the loot boxes
Loot boxes, which have been in existence for about a decade, have run into legal problems in countries such as the Netherlands and Belgium. The redeemable virtual rewards system, which involves accessing maps, weapons and a whole range of upgrades to your in-game functionality, had already become so popular that some developers have wholly shifted their monetisation models away from paid-for-games to free-to-play games because of the revenue they provide.
But the legal issues are threatening the core business model of loot boxes. That is why developers are thinking of reverting to a business model based on advertising or selling games rather than giving them away for free.
However, there can be another option. Rather than making such a drastic U-turn, they could find salvation in the shape of the blockchain. By implementing a new tokenised economic model that this technology provides, game developers could not only continue to make money without having to rely on advertising but also implement a system that would reward gamers for the time they spend playing games.
The problem with loot boxes
Loot boxes first emerged in Asia, but have become more well-known after social game developers like Zynga successfully implemented them. Since then, loot boxes have slowly begun to embed themselves into the fabric of most games, even where their incorporation seems unnecessary. Then loot boxes’ presence in triple-A console games like Overwatch, Battlefront 2, and Shadow of War ramped up their presence in terms of public awareness.
When an entry fee or cost is present in a gaming monetisation scheme, along with luck or chance, and the potential for some type of monetary gain, the scheme is almost definitely going to be considered gambling as a result of those three key elements. Since loot boxes have both a cost and a “random element,” they have landed game makers in hot water with regulators. The cash purchase of these boxes, for regulators in the Netherlands and Belgium, resembles gambling – and is therefore an illegal offering.
While companies like EA have said they will persist with loot boxes, confident that other regulators do not see the situation in the same way as the Belgian or the Dutch authorities, there is no guarantee that other authorities would not act to quash them.
Blockchain as a solution
Rather than putting these key revenue flows at risk though, one potential path that publishers could pursue is to leverage a new form of blockchain monetisation. For example, my company, Loot, has a new mining process that leverages player skill to generate new units of cryptocurrency instead of GPU or CPU mining.
All blockchain networks have some sort of incentive mechanism built into them, which helps the network to function properly. In the case of Bitcoin, this is the proof of work algorithm that keeps the network secure and trustworthy by making it hard to add new transaction data to the blockchain. For game networks, the algorithm could be based not on computational power, but gameplay and the “work” done by players. This would eliminate the initial entry fee, which would prevent regulators from labelling it gambling.
Even though you can already earn virtual currencies within games, cryptocurrencies that are mined and awarded as a result of gameplay are a unique new solution because traditional virtual currencies in games have no value outside of the game, while cryptocurrencies hold their value everywhere. This is the key, because if the coins players spend in the game to buy loot boxes and other items have real value outside of the game, the developers can accept their own in-game coins as real payment for their items. This solves the problem of traditional entry fees and ultimately eliminates the consumer risk that is arguably the most important of the three elements that define what is gambling and what is not.
From the game publisher’s perspective, this would mean they could continue to offer loot boxes but just have them paid for with cryptocurrency that gamers have mined and earned from their skill in play, instead of with real money.
For example, in Overwatch players are currently unable to spend in-game credits and have to spend real money or wait for a level up to grab a loot box. If the in-game credits were a cryptocurrency generated on a blockchain as a result of player skill, Blizzard could accept the credits as payment (at no cost to the user) and exchange the credits for dollars like any other cryptocurrency. This means the players do not have to spend any of their “real” money while the developer has the same revenue they did before.
As publishers and developers consider the effect that loot box regulation might have on profits, they should consider blockchain technology as a potential solution. Publishers should understand that this innovative new technology could safeguard existing revenue streams and also incentivise gamers to play more.
Tobias Batton is CEO of Signal Zero. The company behind Loot, the world’s first blockchain protocol that allows gamers to earn and mine tradable tokens as a result of their skill and without entry fees.
Source: Latest News on European Gaming Media Network

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CHIPS confirmed as Clarion Gaming charity partner ahead of appearance at iGB Affiliate Awards
CHIPS, the gambling industry charity which provides bespoke powered wheelchairs to young people whom the National Health Service is unable to support, has been named Clarion Gaming charity partner.
Born out of the gambling industry the registered charity has presented more than 700 wheelchairs, in the process transforming the lives of recipient children and their families. CHIPS Chairs are designed and engineered to meet the specific physiological needs of each recipient and can cost up to £9,000.
Speaking ahead of the prestigious iGB Affiliate Awards, where she will outline the work of CHIPS, co-founder and Trustee Linda Lindsay said: “I am absolutely delighted to be partnering with the team at Clarion Gaming as we work to generate more funds to help children who have been denied the twin gifts of freedom and independence.
“Having worked with so many families I have seen at first hand the stress placed on them when they are informed that their child doesn’t meet the criteria to receive an National Health Service funded powered wheelchair. I’ve met children who can walk three metres which means that they don’t qualify, despite the fact that after four metres they are struggling to stand and even breathe.
“Many of the families CHIPS has helped over the years would not have been able to continue their children’s education with just a heavy pushchair supplied by the NHS but they’ve flourished and regained their independence and dignity with the powered chair that we have been able to provide thanks to the generosity of our supporters.
“I have attended virtually all of the 700+ presentations that we have made and every single one has had a transformative effect. On behalf of my Trustees, all of whom work for free meaning that every penny raised helps fund the purchase of the wheelchairs, I would like to say how excited we are to be working with the iGaming industry and in the process helping more youngsters to get mobile.”
The iGB Affiliate Awards which celebrate the achievements and innovations of the iGaming affiliate community are taking place Thursday 3 July at the Troxy the Grade II-listed Art Deco music venue on Commercial Road in Stepney, London.
The post CHIPS confirmed as Clarion Gaming charity partner ahead of appearance at iGB Affiliate Awards appeared first on European Gaming Industry News.
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Allwyn and Formula 1® celebrate power of community by launching F1® Allwyn Global Community Award
- Brand-new F1® Allwyn Global Community Award will recognise and spotlight community-focused initiatives from across the world of Formula 1, with first winner to be presented at the Formula 1® Heineken Dutch Grand Prix 2025.
- Allwyn to donate €100,000 to each winning initiative at four races this season.
Allwyn, the multi-national lottery-led entertainment company, and Formula 1 have today announced the launch of the F1® Allwyn Global Community Award. For the first time ever, community-focused initiatives across the world of Formula 1 will be spotlighted and celebrated on a global stage to showcase their positive impact on society. As well as global recognition, winning initiatives will each receive a €100,000 donation from Allwyn to further transform communities around the world.
Winners must demonstrate a meaningful contribution to society away from the racetrack, which could include advancements in education, culture, wellbeing or sustainability. For each race, the local promoter will identify Formula 1-linked community initiatives such as those run by teams, partners and media, which have had an impact in their country. A panel of three judges from Allwyn, Formula 1 and a local representative will agree the winner, who, in addition to the donation, will receive a trophy and a chance to visit a Formula 1 Grand Prix.
The creation of the F1® Allwyn Global Community Award is part of the multi-year partnership between Formula 1 and Allwyn, reflecting a shared commitment to driving positive change and giving back to the communities in which they operate. The first recipient will be presented with the F1® Allwyn Global Community Award ahead of the Formula 1® Heineken Dutch Grand Prix on 31 August. Three additional winners will be chosen later this season, recognising local initiatives at the home of Formula 1 races in the US (Austin and Las Vegas) and Mexico.
Allwyn’s ambition is to extend the Award to cover more races in the 2026 season and further celebrate projects which make a meaningful difference.
Robert Chvátal, Group CEO of Allwyn said: “Championing positive community impact is at the heart of what we do at Allwyn. Our partnership with Formula 1 is the perfect chance to demonstrate our commitment to communities through the creation of this inspiring F1® Allwyn Global Community Award, supporting the very best community initiatives around the world and bringing them to a huge global audience.”
Stefano Domenicali, President & CEO of Formula 1 said: “It is a pillar of our sport to leave a positive legacy where we race and for many years, we’ve worked with the promoters and regional organisations to do just that, from inviting children from local schools to the track to encourage them to consider a role in motorsport, through to funding education initiatives and welcoming local community outlets and charities to be part of the event. Every year 24 incredible venues open their doors to host us, and we are met with fantastic passion and love at the track and throughout the entire city, so I am very proud to launch the F1® Allwyn Global Community Award as part of our mission. We will give the local initiatives that go the extra mile for making their communities and make the world a better place the recognition and global platform they deserve.”
The F1® Allwyn Global Community Award will be presented at the following Grands Prix in 2025:
- Formula 1® Heineken Dutch Grand Prix 2025 – 29 – 31 August 2025
- Formula 1® MSC Cruises USA Grand Prix 2025 – 17- 19 October 2025
- Formula 1® Gran Premio De La Cuidad De Mexico 2025 – 24 – 26 October 2025
- Formula 1® Heineken Las Vegas Grand Prix 2025 – 20 – 22 November 2025
The post Allwyn and Formula 1® celebrate power of community by launching F1® Allwyn Global Community Award appeared first on European Gaming Industry News.
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HIPTHER Launches FREQ404: Tune in for a Sonic Journey of Balance by Sound and Error by Design
HIPTHER, the renowned online media and event organiser for Gaming and Tech, is turning up the volume – quite literally – with a powerful new initiative that brings music, identity, and community together. Meet FREQ404: an electrifying monthly music mix curated by HIPTHER’s very own Co-Founder, Zoltan Tuendik, under the HPT.R profile.
From the stage to the strategy room, the creative spark of Zoltan and his wife, Betty Tűndik Kiszner Szilágyi, Co-Founders of HIPTHER, has always been a driving force behind the brand. But long before the conferences and curated content, Zoltan was better known to many as DJ Hawkie – a curator of soundwaves and moods. With performances at iconic venues like Ministry of Sound London (during iGB 2014), his passion for electronic music has always been loud and clear.
Now, with FREQ404, he returns to his roots, remixing electronic music and innovation in true HIPTHER fashion.
“My first sessions were live back in 2005–2006, and I recorded my first mix in 2008. Over the years, I’ve dropped the occasional annual mix, but something always pulled me back to the decks. With FREQ404, that pull is now a purpose. To reconnect with the roots, the rhythm, and the community. This time, it’s monthly. This time, it’s staying.” — Zoltan Tuendik a.k.a. HPT.R
The #hipthers are known for their passion for life, wellness, and connection – fostering innovation, sustainability, and movement. Now, they celebrate these pillars with their community and the world through a shared musical experience.
“Error by Design. Balance by Sound.”
HPT.R broadcasts FREQ404 from the glitch in the system, delivering monthly sonic transmissions that blend progressive, techno, vocal house, and deep electronic cuts. Each mix is a journey – hypnotic, immersive, and impossible to ignore.
This isn’t just background music. It’s a frequency for those who feel the pulse of innovation and want to ride its beat.
Why FREQ404?
Because sometimes, the best signals come from the errors in the system. And because music is a companion and inspiration throughout our everyday lives.
From the edge of the digital frontier, HPT.R is setting the tone for a new kind of HIPTHER vibe – one that unites tech, culture, and energy across borders.
🔗 Follow and listen now on Mixcloud and Spotify.
📡 New mix every month. Stay tuned – this is only the beginning.
The post HIPTHER Launches FREQ404: Tune in for a Sonic Journey of Balance by Sound and Error by Design appeared first on European Gaming Industry News.
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