Sweden’s Konsumentverket Publishes Report on Loot Boxes and Other Gambling-like Features in Games

The Swedish Consumer Agency Konsumentverket (KO) has published a report on loot boxes and other gambling-like features in games.

The report states that loot boxes or other gambling-like features in games could be regulated under the Swedish Gambling Act (2018) when prizes from in-game features constitute money or money’s worth.

If the in-game features have a monetary value from being able to be traded for money or money’s worth, then there is a real risk that loot boxes or other gambling-like features in games could constitute gambling and, therefore, would require a licence.

The Swedish courts have yet to decide whether loot boxes and other gambling-like features in games fall under the Swedish Gambling Act or not. If they would be considered to fall under the act the KO deems the act to provide wide protection for consumers.

The report shows that there is not, at this point in time, sufficient research to be able to establish a connection between loot boxes and gambling. The KO cannot motivate or recommend any further measures to be taken due to the lack of sufficient research. However, the KO still encourages the gaming industry to continue its self-regulation.

Despite the lack of sufficient research, the KO deems there to be grounds for further investigation with regard to children and adolescents, which is considered to be a particularly vulnerable group of consumers. For this reason, the KO believes that further regulation could be justified, if supported by research, in order to protect the wellbeing of children and adolescents.

The report is perhaps the first step in the process of adjusting Swedish consumer regulation to the risks posed by the blurring of lines between gaming and gambling.