RANDOM REWARD MECHANISM IN VIDEO GAMES, IN THE SCOPE OF EUROPEAN GAMBLING REGULATIONS AND CONSUMER PROTECTION LAW, WITH PARTICULAR EMPHASIS ON LOOT BOX MECHANISM

Abstract

This article focuses on the issue of Random Rewards Mechanisms, in particular loot box mechanism, being implemented in modern video games. Nowadays, in the era of progressive technological progress, the borders between gambling and gaming have blurred as never before. More and more countries came to the conclusion, that different features of video games are problematically similar to classically-understood gambling. The report titled „Loot boxes in online games and their effect on consumers, in particular young consumers” provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on Internal Market and Consumer Protection has accurately defined the problem, as simultaneously concerning both gambling regulations, as well as consumer protection laws. The report constitutes excellent starting point for a further discussion about loot boxes in UE and in Poland. The article provides detailed analysis of the issue, beginning with defining the term “loot box”, followed by scrutiny of both domestic and Union regulations. Relying on the distinction of loot-boxes provided by R. K. L. Nielsen and P. Grabarczyk author have analysed the regulations in order to present different approaches to the issue and their consequences. In the final part of the article author comments on Polish regulations and triers to predict the future development of law concerning loot boxes. The paper refers to multiple reports, laws and rulings regarding discussed matter.