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Compliance Updates

Pearson, Simon & Warshaw, LLP and Kaliel PLLC: New Class Action Lawsuit Challenges Fortnite’s Sale of Loot Boxes

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Pearson, Simon & Warshaw, LLP and Kaliel PLLC: New Class Action Lawsuit Challenges Fortnite’s Sale of Loot Boxes
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Pearson, Simon & Warshaw, LLP and Kaliel PLLC filed suit, Altes v. Epic Games, Inc. Case No. 2:19-cv-01488 in the U.S. District Court for the Central District of California on February 28, 2019, alleging that Defendant Epic Games, Inc., the developer of the wildly popular video game Fortnite, uses predatory tactics to lure players into making in-game purchases. Specifically, the Complaint challenges Fortnite’s unfair and deceptive marketing of its “loot boxes,” known as “Llamas,” in Fortnite Save the World.

The Complaint, which is filed as a class action on behalf of California consumers, is brought by Mr. Altes on behalf of his child, a minor. Melissa Weiner, an attorney representing Mr. Altes and his son, commented, “Fortnite’s conduct with respect to loot boxes is especially egregious because so many of its players are kids.”

A “loot box” is a virtual pack of goods which contains a randomized selection of virtual items to be used in a game. Loot boxes can contain everything from purely cosmetic items—known as “skins,” which offer no competitive advantages—to a variety of items such as “power ups” that can dramatically alter a player’s chance of progressing in the game. The loot boxes in Fortnite Save the World, known as Llamas, are of the latter variety, offering players a chance to advance in the game.

Recently, loot boxes have generated significant controversy, with some countries, such as Belgium, Netherlands, and Australia finding that they constitute illegal gambling, based on the fact that consumers pay real currency for potential “loot” that is not guaranteed.

Other countries, including China and Korea, have recently issued regulations requiring games with loot boxes to disclose the odds of winning loot box contents.  In the U.S., the Federal Trade Commission has vowed to investigate the use of loot boxes in video games, but so far, has taken no action.

Mr. Altes’ Complaint, which was filed in federal court in California, alleges that through both misrepresentations and omissions, Epic markets loot box Llamas in Fortnite Save the World as highly likely to contain valuable loot, but in reality, the Llamas do not contain the loot expected by the reasonable consumer, and especially by the reasonable minor. The Complaint alleges that Epic fails to disclose that the odds of receiving valuable loot are next to nothing, and, if players knew the actual odds of receiving the items they desired, they would not purchase the Llamas.

Sophia Gold, another attorney representing Mr. Altes, commented, “In nearly every other game of chance, the odds of winning are disclosed.”

Mr. Altes, who brings his claims under California consumer protection law, seeks both an injunction and a class-wide refund.

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Compliance Updates

Danish Gambling Authority Opens Applications for Land-based Bingo Licences

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The Danish Gambling Authority has officially opened applications for land-based bingo licences under the country’s new regulatory framework.

The licences will be valid from 1 January 2025 for applicants who meet the required conditions and submit complete applications by 10 December 2024.

This development provides opportunities for operators to offer land-based bingo within a regulated environment.

To assist prospective applicants, the Danish Gambling Authority has created a dedicated “Land-Based Bingo” webpage. Here, operators can access application materials, guidelines and instructions to ensure submissions are completed accurately.

Operators seeking a licence valid from 1 January 2025 must submit their applications by the 10 December deadline. Applications that meet all requirements will be processed in time for the start date.

In cases where additional information or conditions are needed, the authority may issue licences with specific stipulations, granting operators additional time to address outstanding issues.

To support industry stakeholders, the Danish Gambling Authority will host an information meeting about the new land-based bingo rules on 5 December 2024. The session will take place at Englandsgade 25, Odense, and interested parties are encouraged to register by 29 November 2024.

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Compliance Updates

CT Interactive announces certification of new games for the Italian market

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CT Interactive announces certification of new games for the Italian market
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CT Interactive is thrilled to announce that new titles have officially received certification for the Italian market, ready to bring a fresh wave of entertainment to players across the country. This certification ensures that the games adhere to Italy’s stringent regulatory standards for fairness, security, and quality, reinforcing CT Interactive’s dedication to providing top-tier gaming experiences.

The newly certified games include: 5x Cherry PartyChristmas StormJester JackLucky KiwiMega GnomePiggy CrashStar GirlThe Big ChilliThe New Queen of FruitsTreasure Chase.

These exciting games offer a diverse range of themes, from the festive charm of Christmas Storm to the whimsical adventures of Piggy Crash and Mega Gnome. Whether players are in the mood for the nostalgic appeal of a classic fruit slot like The New Queen of Fruits, or looking for thrilling treasure hunts in Treasure Chase, there’s something for every type of player.

Each game has been developed with a focus on delivering engaging features, rewarding bonuses, and immersive gameplay. With unique mechanics and visually striking graphics, these releases are designed to captivate Italian players and keep them returning for more.

CT Interactive remains committed to enhancing the Italian gaming landscape by consistently providing fresh, exciting content and introducing new ways to play.

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Compliance Updates

MGA Marks Safer Gambling Week by Hosting Focus Group on Addressing Problem Gambling

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As part of Safer Gambling Week, the Malta Gaming Authority (MGA) has launched the first in a series of focus groups aimed at addressing problem gambling and its effects on Maltese communities.

Bringing together key stakeholders such as Caritas Malta, Aġenzija Sedqa, the OASI Foundation and the Responsible Gaming Foundation, the session explored a self-assessment tool that the Authority is currently developing, grounded in recent research and industry trends.

The self-assessment tool, which will be available both in English and in Maltese, will guide individuals through a set of questions to help them identify whether gambling is causing harm in their lives. Based on the user’s responses, the tool will provide personalised recommendations and direct them to appropriate support services.

With invaluable input from organisations experienced in supporting individuals affected by problem gambling, the tool will undergo further refinement to maximise its effectiveness and relevance.

Clinical Chair at Aġenzija Sedqa, Anna Maria Vella, hailed the focus group as a “welcome initiative” which brought together a multidisciplinary team of experts.

“Working together and not in silos is always beneficial. We learn from each other to be more effective.”

Louis Bellizzi, Secretary of Caritas’ Foundation for Victims of Usury, said: “The MGA is in a unique position to coordinate the national effort to help alleviate the scourge of gambling addictions.”

In recent years, the Authority has taken significant steps to promote safer gambling practices, ranging from regular supervisory reviews on responsible gambling to enforcing stricter regulations.

The MGA closely monitors operators’ implementation of behavioural monitoring systems, self-exclusion systems and responsible marketing practices.

With a focus on high-risk areas, the Authority is refining its supervisory approach to be more dynamic and data-driven, ensuring responsible gambling practices are maintained and continuously improved to protect players effectively.

The MGA’s efforts align closely with the European Gaming and Betting Association (EGBA)’s initiative to establish a unified European standard for identifying markers of harm. The MGA is actively engaged in this initiative, working closely with fellow regulators and industry experts to create a comprehensive standard aimed at early identification of behaviours indicative of problem gambling.

The Authority’s proactive involvement in such initiatives underscores its dedication to fostering a responsible and transparent gaming sector, both locally and across Europe.

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