France says loot boxes are not gambling devices

France has moved away from the controversy surrounding loot boxes in video games by refusing to term using loot boxes as a form of gambling. This is a marked deviation from the stance adopted by countries such as the Netherlands and Belgium. The Dutch and Belgian authorities have cautioned the loot game publishers about legal action if their guidelines are violated.

In a recently published report, the Autorité de regulation des jeux en ligne /ARJEL has warned about loot boxes but says that a “combined and coordinated” action plan is required to deal with them, according to a translation and analysis of the report by media law associate Sebastian Schwiddessen.

ARJEL believes that regulation of loot boxes would require input from several institutions including gambling authorities, consumer protection authorities, financial and banking regulators, and data protection authorities. ARJEL wants European financial regulators, for instance, to step in and provide a more “coherent” analysis of microtransactions.

But does ARJEL believe loot boxes can be considered gambling? The authority believes that for loot boxes to qualify as gambling, the items contained within them must have real-life monetary value, and adds that it’s currently investigating the possibility of selling loot box-generated items.

Schwiddessen’s analysis of the report suggests that ARJEL is reluctant to take solo action and is seeking further clarification from several authorities for a combined effort to address loot boxes. However, don’t expect an outcome anytime soon. It also seems unlikely that ARJEL will follow the Belgian and Dutch authorities’ footsteps.

Source: ARJEL via Sebastian Schwiddessen/Games Industry