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German State Proposes Ban on Loot Boxes in Video Games— Here’s Why

German State Proposes Ban on Loot Boxes in Video Games— Here’s Why

The governing coalition of the Social Democrats, Greens, and FDP in Germany is advocating for a nationwide ban on loot boxes in video games. The proposal, recently passed in the Bremen state parliament, aims to address concerns surrounding these in-game purchases.

Representation
(Photo : Unsplash/ Alex Haney)

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Coalition Pushes for Comprehensive Ban

The governing coalition's proposal includes not only a ban on loot boxes but also restrictions on social casino games, premium currency usage, and even the live streaming of games featuring loot boxes.

This move has sparked a notable debate, with one opposing party, the Christian Democrats Union (CDU), offering alternative suggestions.

CDU Opposition and Counter-Proposals

Facing opposition from the Christian Democrats Union (CDU), the coalition's motion, which includes bans on loot boxes, social casino games, premium currency, and live streaming of games with loot boxes, garnered approval. The CDU's counter-proposal emphasizes ID verification for in-game purchases, Euro pricing, and a registration process with spending limits.

Legal expert Leon Y. Xiao pointed out errors in the coalition's motion, clarifying that claims about loot box bans in Belgium and the Netherlands are inaccurate. While Belgium's laws potentially cover loot boxes, no enforcement has taken place. In the Netherlands, a proposed ban is still under consideration after the highest administrative court ruled against immediate regulation under gambling laws.

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