The status of loot box regulation

In our article of May 2019 covering loot box regulation, we discussed the shape and impact of potential regulation and self-regulatory practices which, if implemented, would significantly affect the operation and functionality of loot boxes in video games.

Throughout 2019 we have seen a number of jurisdictions, industry bodies, and platforms taking steps along the lines we highlighted.

For example, the Entertainment Software Association announced in August 2019 that Sony, Microsoft and Nintendo will voluntarily require all games using their platforms to disclose loot box drop rates. In the UK, the influential Digital, Culture, Media and Sport Committee produced a report in September 2019 that called for loot boxes to be brought within the scope of the Gambling Act 2005. In South Korea, the National Gambling Control Commission stated in May 2019 that loot boxes present a high level of concern.

To help you keep on top of these fast moving developments, we have summarised the status of the regulation of loot boxes across China, the UK, South Korea, Italy, Japan and the USA here.

If you have any questions about loot boxes, including the specific implementation of loot boxes in your games, or the applicability of any regulation or self-regulatory practices to you, please speak to your usual Simmons & Simmons contact or the following members of our Gaming and Esports Group:

Japan: Elia Kim

China: Ryo Lu

United Kingdom: Priya Nagpal

Italy: Edoardo Tedeschi and Alessandra Bianchi

We are grateful to the contributions of Kenji Marusumi and Shigeru Nakayama of TMI Associates to this article. You can read more about Simmons & Simmons’ joint venture with TMI Associates in Tokyo here.