Loot boxes do not meet gambling criteria, says Canadian Supreme Court judge
Justice Margot Fleming dismisses part of plaintiff’s claim against Electronic Arts for injunctive relief in relation to feature
A Canadian Supreme Court judge has rejected claims that loot boxes could be classed as gambling, in a case brought against FIFA publishers Electronic Arts (EA).
Justice Margot Fleming delivered her verdict as part the judicial process which has seen plaintiff Mark Sutherland bring a claim against EA on behalf of all residents in British Columbia who had partaken in EA loot boxes since 2008.
Sutherland alleged that EA used “deceptive and unconscionable acts” and engaged in unlawful gaming or gambling.
The plaintiff is seeking declaratory and injunctive relief, as well as restoration for the money spent on loot boxes.
Following the certification hearing, Sutherland sought to file a Further Amended Notice of Civil Claim (FANOCC) which Fleming has now seemingly poured cold water on.
As part of the FANOCC, Sutherland argued that loot boxes held a “real world value” and that because they are available for purchase using real money, players have the prospect of loss or gain of monies, akin to gambling.
The FANOCC also claimed that loot boxes held an “intrinsic value”, including commercial and exchangeable value outside of the video games.
Sutherland said the content garnered from loot boxes can be resold at in-house auctions.
However, Fleming noted: “There is no prospect of gaining (or losing) anything with a real-world value through the defendants’ in-house auctions.
“Unlike a casino chip, virtual currency and virtual items in loot boxes can never be ‘cashed out’ to gain money or money’s worth.”
Fleming upheld that the gambling argument had “no reasonable prospect of success”.
She added that the case could proceed under Sutherland’s allegations of deceptive and unconscionable acts, but he would need to amend his notice relating to the gambling allegation.
Fleming’s decision, although in one specific case with various facets, is in stark contrast to European decisions on loot boxes in recent months.
Earlier this month, the District Court of Hermagor ruled Sony broke Austrian gambling law by offering loot boxes in FIFA.
Belgium and the Netherlands also classify loot boxes as gambling.