Compliance Updates
Finland starts probe into loot boxes
Finland has started an enquiry into practice of using loot box systems in video games. This is following the official sanction and controversy surrounding loot boxes in European countries such as Belgium and the Netherlands.
Here is a brief history of loot boxes for the uninitiated.
Loot boxes have been part and parcel of some video games for over a decade. The early days of these systems were used in free-to-play games and MMORPGs, but the last few years have seen them creep into regular games like Counter-Strike: Global Offensive, Overwatch, PLAYERUNKNOWN’S BATTLEGROUNDS and others.
A number of investigative bodies in different governments have undertaken investigations into the legality of these systems and whether or not they run afoul of gambling regulations. The state of Hawai’i in the United States and The Netherlands have begun movement on some sort of regulation and Belgium’s decisions on the matter have recently caused Blizzard Entertainment to remove the ability to buy loot boxes for Heroes of the Storm and Overwatch in that country. Belgium’s gaming commission has even begun the steps for legal action against Electronic Arts over their decision not to comply with the ruling of loot boxes as gambling. Finland appears to be the next country to begin investigating these practices.
According to a statement from Finland’s Lotteries Administration supplied to Helsingin Sanomat, four conditions must be satisfied for a loot box system to be considered gambling in that country:
Loot boxes can be purchased partly or entirely with real-world money.
Players do not know what they will receive from the box (that is, they’re random).
The box or its contents can be exchanged for real-world money either through the game’s publisher or through a third party.
The publisher of the game does not have a lottery license.
In short, it seems that the primary condition for these systems to run afoul of the law in Finland is the ability to make real-world money on them. Going by my interpretation of these conditions, a game where you cannot sell the boxes or their contents back to the publisher or to a third party like Overwatch would likely not be in breach of the law but games like Counter-Strike: Global Offensive and PLAYERUNKNOWN’S BATTLEGROUNDS may indeed be illegal under those regulations.
Ultimately, whether or not loot box mechanics are legal in Finland is a matter that will have to be decided by the courts interpreting the law as its written. At this point in time, no precedent has been set in this particular area of law. However, the first few complaints have been filed and we may see some decisions coming down in the near future if they advance to a trial.
Source: TechRaptor
Compliance Updates
MGA Issues First ESG Code Approval Seals to Licensees
The Malta Gaming Authority (MGA) has awarded its first-ever ESG (Environmental, Social and Governance) Code Approval Seals to licensees in the online gaming sector, marking a milestone in the Authority’s commitment to promoting responsible and sustainable industry practices.
This initiative follows the launch of the voluntary ESG Code of Good Practice last year, which invited licensees to submit their ESG disclosure returns. The Code, which covers 19 topics categorised under Environmental, Social and Governance pillars, offers a strategic roadmap for online gaming companies to streamline their reporting efforts.
Following the first annual reporting cycle, 14 gaming operators have been awarded the ESG Code Approval Seal. The Code supports two levels of reporting: Tier 1, which establishes foundational ESG standards, and Tier 2, which represents a more aspirational approach.
Seals are valid for one year, with flexibility for renewal in the subsequent reporting period, allowing operators to advance or adapt their reporting tier year by year.
“We believe this initiative will significantly enhance the industry’s reputation and sustainability credentials,” MGA CEO Charles Mizzi said.
“By integrating ESG considerations into their operations, gaming companies not only contribute to the wellbeing of society and the environment but also strengthen the trust and confidence that consumers, investors, and regulators have in the industry. This initiative sends a clear message: sustainability, in the broadest sense of the word, is integral to the future of the gaming sector.”
Compliance Updates
Turkish Football Federation to Penalise Clubs Promoting Illegal Betting
The Turkish Football Federation (TFF) has introduced new regulations to crack down on illegal betting advertisements in professional football.
According to the TFF, clubs found violating the new rules will face fines and, in case of repeated offenses, the deduction of points.
Under the updated guidelines, any club in the Turkish Super League involved in unauthorised betting promotions will face a tiered penalty system.
The first violation will result in a fine of 2 million Turkish Liras (around $58,000), and the second offense will incur a 5 million lira fine and a third violation will see the fine increased to 10 million liras. For subsequent breaches, clubs will be fined 10 million liras for each offense, along with a three-point deduction from their league standings.
“It is forbidden to promote or advertise betting organizations not licensed by competent authorities. This includes any media, billboards and other equipment used within stadium,” the TFF stated.
The TFF emphasised that the ban also applies to entities affiliated with these betting organisations, including those involved in promoting and advertising activities in a way that suggests endorsement of illegal betting.
The global scale of the illegal betting market is staggering, with the United Nations Office on Drugs and Crime estimating its worth at $1.8 trillion. In Türkiye alone, the sector is projected to exceed 100 billion liras, according to the Financial Crimes Investigation Board.
Compliance Updates
Aviatrix lands in the Netherlands
Aviatrix, the award-winning crash game, has received its certification in the Netherlands, meaning Dutch players can enjoy the popular title for the first time.
The certification in the Netherlands opens up yet another important regulated market for Aviatrix, which was recently named ‘Game of the Year’ at the EGR Operator Awards 2024.
Gross gaming revenue in the Netherlands hit €1.39 billion in 2023, and is expected to continue to grow over the coming years.
Dutch operators will now be able to capture this growth via Aviatrix’s innovative title, which is proving hugely popular in regulated markets worldwide.
Anastasia Rimskaya, Chief Account Officer at Aviatrix, said: “The Netherlands has been on our radar for some time, so this is a big day for us here at Aviatrix. We can’t wait to see Dutch players enjoying the title, and we will be working closely with some very special partners in the Netherlands to ensure this game is widely available very soon.”
Part of what makes Aviatrix so successful is the constant updates to the game, which keeps it fresh and exciting for players.
This has included a full redesign with new, 3D assets, as well as a first-of-its-kind free bets function via in-game promo codes.
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