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In a historic decision, an Austrian court ruled that loot boxes in video games—specifically, Counter-Strike: Global Offensive by Valve—are gambling. The court’s ruling not only draws attention to the ongoing controversy over the proper classification of loot boxes, but it also establishes a precedent for future cases that might have comparable implications around the globe.

The legal dispute started after a player in Counter-Strike spent a substantial amount of money—$15, 000—on in-game purchases. According to the complaint, loot boxes violate Austrian gambling regulations, which require government control of such activities, because they are a type of gambling. The groundwork was prepared for possible refunds when the court decided to support the player.

Counter-Strike’s publisher and owner, Valve, has a history of taking court orders seriously, particularly when it comes to loot boxes. In 2016, the business was hit with a class-action lawsuit alleging that their games encouraged underage gambling. The current decision may make it more difficult for Valve to conduct business in Austria.

Potential Ramifications for Valve’s Business

The managing director of the plaintiff’s legal company, Padronus and Salburg, Richard Eibl, believes Valve’s move to appeal the ruling might cause more damages. Comparing this lawsuit to one against Electronic Arts and its FIFA brand, Eibl speculates that Austria may turn out to be another country where selling loot boxes to gamers turns into a complicated problem for game developers.

According to Eibl, the decision may have a big effect on Valve’s sales in Austria. The conclusion was strengthened by the fact that the judge presiding over the case was previously acquainted with Counter-Strike. This legislative result gives the worldwide discussion over regulating in-game purchases more impetus and indicates Austria’s unwillingness to see loot boxes as anything but a kind of gambling.

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