WestLotto Welcomes Concrete Proposals for Loot Box Regulation

MUNSTER, Germany (September 15, 2023) — With a six-point plan, lawyer Carsten Bringmann has shown concrete opportunities for the regulation of loot boxes in the Youth Protection Act. “This means that for the first time there are very clear proposals for regulation on the table. This is an important next step so that we can move from discussion to action,” said Ron Schindler, speaker for responsible gaming at WestLotto at the 9th Gambling Law Day in Frankfurt.

At the event, Bringmann from the Noerr law firm in Düsseldorf looked at the following elements for regulation in his presentation:

• Registration requirement
• Deposit limit
• Requirements for the design of loot boxes (prevention of misleading design and special incentives for addiction)
• Requirements for the advertising of loot boxes (possibly up to a ban, ban on free enticement offers)
• Obligations to provide information and information
• Labeling requirements

“Youth protection law is the appropriate starting point for regulating the loot box phenomenon,” explained Bringmann at the end of his lecture. Its derivation follows the principle “What applies to adults in gaming law must apply to minors in gaming.”

WestLotto has long been campaigning for clear regulation of gambling-like elements in gaming and is committed to a round table with the participation of all stakeholders. In his presentation, Bringmann highlighted the difficulties that arise when trying to regulate loot boxes under criminal law, competition law, commercial law or gambling law. Example of gambling law: This is aimed at adults, but regulation is particularly necessary for minors. In addition, the coherent connection to gambling law would require the creation of a comprehensive licensing system.

Bringmann, on the other hand, sees opportunities in regulation through youth protection law and gives three arguments here: Young people are the most important protected group and should therefore be given particular attention. With the JuSchG reform 2021, the federal legislature has included regulations that are aimed at loot boxes and has therefore already taken fundamental measures. With the 2021 reform and the establishment of the Federal Center for Child and Youth Media Protection, the federal government has clearly positioned itself as a uniform addressee for reform efforts. A political agreement between 16 federal states is therefore not necessary here.

Source: Westdeutsche Lotterie GmbH & Co. OHG (WestLotto).