Legal Background for Reclaiming Loot Box Payments

Loot boxes are currently a hot topic. The reason for this is initial court rulings that address the supposedly harmless virtual loot boxes. The tenor of these rulings is clear: The legal ‘Wild West’ is being decisively rejected by the courts, and in the recent past, both platform operators and publishers have been held accountable accordingly.

But how can this be? The parties involved are well-known companies such as SONY, EA, Microsoft, Apple, Google and others. These very companies (and many more) also regularly advertise in Austria.

The reason is easily explained: In Austria, gambling is regulated by the so-called Gambling Act (GSpG). Offering, organizing, arranging, or making accessible (online) gambling in Austria is not permitted without a corresponding Austrian license. The stakes made are – similar to the established online casino “practice” – reclaimable.

What are Loot Boxes and why should Payments for Them be Reclaimable?

One will search in vain for a legal definition concerning the relatively young phenomenon of loot boxes in various law books. The term “Lootbox” is to be understood as a collective term for virtual treasure chests. These must be integrated into a virtual application (a video game title such as FIFA/EA FC, Counter-Strike: Global Offensive and many more) and regularly represent merely an ancillary service of such a game title.

The content of the respective loot box must be dependent on chance; it must not be apparent beforehand “what’s inside”.

Now the obvious thought arises that this is “indeed the case with almost all loot boxes available for real money”. This thought is not misleading – we have dedicated ourselves in depth to the topic – together with our qualified and specialized cooperating lawyers – and have come to a clear conclusion:

If a loot box is acquired (i.) for real money in a game title, its content (ii.) is dependent on chance, and the content (iii.) has a potentially valuable benefit, then it constitutes a game of chance within the meaning of the Austrian GSpG. What is missing, however, is the gambling license required for such games of chance. The offering of loot boxes is therefore not legal.

Therefore, from the perspective of our cooperating lawyers, payments for loot boxes are reclaimable. This is also confirmed by a multitude of rulings from Austrian courts.

But What Does the Individual Player who Has Spent and Lost Money on Loot Boxes in a Game Title Gain from this?

The payments and correlating losses can be reclaimed through civil law proceedings in Austrian courts! This means that the platform operator and/or the publisher of the game title can be sued for the repayment of stakes or losses.

Since such lawsuits in practice involve enormous costs (lawyer, court fees, translation costs, possible enforcement actions, etc.), engaging a litigation funder like AdvoFin is the only way for most affected parties to assert their claims.

Simple, Fast, and Securely Reclaim Payments for or Losses Related to Loot Boxes – this is how it Works

The lawsuit itself is filed in Austria (at the local district or regional court, depending on the amount in dispute). The defendant is the platform operator and/or the publisher of the respective game title, who regularly has their registered office abroad. Experience shows that the duration of such proceedings is between 18 and 24 months.

In total, over €75 million in losses related to online gambling (casino and others) have already been recovered through AdvoFin’s litigation funding. Also important regarding loot boxes: The net loss is always reclaimed (deposits minus withdrawals or other monetary utilizations of loot box contents). Payments or losses made or incurred during a stay abroad cannot be reclaimed.

Learn more about our services now. For any (follow-up) questions, please do not hesitate to contact us by phone or email at any time!

AdvoFin – Takes Care of Your Claim, Ensures Your Rights!