Netherlands is latest to declare loot boxes as gambling

Netherlands is latest to declare loot boxes as gambling

More countries are saddling up to crack down on loot boxes in games, with The Netherlands being the latest to do so. Its gaming authority has announced that two out of every five loot boxes were in violation of the country's gambling laws and therefore should not be allowed to be present in their specific games.

The study was conducted by the Netherlands Gaming Authority and its conclusion was that the games in question needed to be changed, or risk being banned in the country altogether.

"The reason is that the content of these loot boxes is determined by chance and that the prizes to be won can be traded outside of the game: the prizes have a market value," the report reads, via PCGamer. "Offering these types of games of chance to Dutch consumers without a license is prohibited."

Much of the ruling centers around the content rewarded as part of the loot box system having a real, monetary value. If it doesn't, then it's not technically gambling, but if it does, it can fall foul of the Netherlands' laws. However, as the report also highlights, much of existing law is simply not equipped to deal with this type of gambling and it's possible that with an expansion of the law to address loot box and other gaming random chance elements, that gambling laws could be applied to a wider swathe of games.

Although a small territory in the gaming landscape, the Netherlands joins a growing list of countries and authorities which want to see the practice restricted from its current guise. Although the industry appears to be making some changes, no sweeping bans or crack downs have been instigated in any major territories as of yet.