Sony must reimburse a customer for so-called FIFA packs, virtual game characters for computer games. According to the court, this is gambling. This appears from a – not final – judgment of the court of Hermagor. It is the first ruling in Germany and Austria about the loot box business. Players pay for randomly selected computer game content in hopes of gaining in-game advantages.
About two years ago, litigation financier Padronus and the law firm in Salburg filed a model lawsuit against Sony Interactive Entertainment Network Europe Limited. The refund of 338.26 euros that a customer had spent on FIFA packs was requested. The Hermagor court has now ruled that these packages qualify as games of chance that require a license, according to a Padronus broadcast.
Virtual football players, pure coincidence
The FIFA packs contain virtual football players that you can integrate into your digital football team. The better the players are, the easier it is to win a game. However, it depends on chance which virtual football players the customers receive via the virtual containers (loot boxes) in computer games.
Since the digital football players are traded on a secondary market, this is a financial advantage within the meaning of the Austrian Gambling Act. That’s why it’s gambling. However, Sony does not have a gambling license. For this reason, the contracts between the group and the customer are null and void and the purchase price can be recovered.
“A Bang for the Video Game Industry”
“The verdict is a blow to the entire video game industry. Neither Austria nor Germany has jurisprudence on the legality of loot boxes and the reclaimability of payments made. The final outcome of course remains to be seen, as the process will likely go through court, but Sony and several other gaming groups should wrap up warm from now on,” said Richard Eibl, CEO of Padronus.
Loot boxes a billion dollar business
According to the litigation financier, the so-called loot boxes are a global billion-dollar business that has already been banned in the Netherlands and Belgium. In 2020 alone, 15 billion dollars (14.1 billion euros) worth of loot boxes were sold worldwide. If providers in this country are also forced to pay back, Padronus expects that the financial consequences for the affected operators will be disastrous. “The verdict points the way for dealing with Looxboxes and shows that video games are not a legal loophole,” said attorney Michael Linhard, who oversaw the trial for the Salburg law firm.
“It was only by talking to our customers that we realized how addictive the FIFA packs are and how pathological the purchasing behavior of the players is,” Eibl added. According to Eibl, the number of questions about the loot boxes is in the four-digit range. On average, the players spend 800 euros, but the litigation financier also refers to a case with 85,000 euros in damage. Sony could not be reached for comment.
Source: Krone
I am Wallace Jones, an experienced journalist. I specialize in writing for the world section of Today Times Live. With over a decade of experience, I have developed an eye for detail when it comes to reporting on local and global stories. My passion lies in uncovering the truth through my investigative skills and creating thought-provoking content that resonates with readers worldwide.
