{"id":75293,"date":"2018-04-14T10:30:07","date_gmt":"2018-04-14T17:30:07","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=75293"},"modified":"2018-04-14T08:48:22","modified_gmt":"2018-04-14T15:48:22","slug":"south-korean-companies-fined-1-million-over-deceptive-loot-box-odds","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/south-korean-companies-fined-1-million-over-deceptive-loot-box-odds\/","title":{"rendered":"South Korean Companies Fined $1 Million Over Deceptive Loot Box Odds"},"content":{"rendered":"

Three South Korean games developers, have been hit with fines totaling nearly $1 million for misrepresenting the odds used in their in-game loot boxes.<\/p>\n

\"South
Nexon Korea\u2019s Counter Strike Online 2<\/em> was singled out by South Korea\u2019s Fair-Trade Commission for deceptive practises over its loot boxes. But if social casino games are now considered illegal gambling in Washington State, why not loot boxes too, which use similar mechanisms? (Image: Nexon Korea)<\/figcaption><\/figure>\n

According to the Korean Herald<\/em>, the country\u2019s largest games developer, Nexon Korea, received the lion\u2019s share of fines \u2013 around $890,000 \u2013 for deceiving customers over the chances of winning virtual prizes via loot boxes in Counter Strike Online 2<\/em> and Sudden Attack.<\/em><\/p>\n

The South Korean Fair-Trade Commission (FTC) said Nexon also failed to inform customers of their right to withdraw in-game purchases in Counter Strike Online 2.<\/em><\/p>\n

The remainder of the penalties were imposed on NextFloor, the creator of mobile game Destiny\u2019s Child<\/em>, and Netmarble, which publishes Ys Online<\/em> and Star Wars: Force Arena<\/em>, for similar transgressions. The FTC ordered all three companies to revise the way they promote and disclose odds in the future.<\/p>\n

Are Gamers Being Looted?<\/strong><\/h2>\n

Loot boxes are consumable in-game items that offer randomized chances to win more virtual items or skills. Increasingly, bought-and-paid-for video games \u2013 \u00a0not just mobile games apps \u2013 are demanding microtransactions from players for access to loot boxes, which often offer skills that are necessary for advancement in the game.<\/p>\n

Titles like Star Wars Battlefront II<\/em> have been singled out for criticism and have recently brought loot-boxes into the political sphere.<\/p>\n

\n

Lawmakers from Washington State to Hawaii have been asking questions about whether in-game loot boxes can be classed as illegal gambling, and the issue has even been raised in Congress.<\/p>\n<\/div>\n

In February, US Senator Maggie Hassan<\/a> (D-New Hampshire) quizzed the Federal Trade Commission to ask whether it believed that \u201cchildren being addicted to gaming \u2013 and activities like loot boxes that might make them more susceptible to addiction \u2013 is a problem that merits attention?\u201d<\/p>\n

She told fellow lawmakers she had also written to the video games industry self-regulator, the Entertainment Software Rating Board (ESRB), which last October said it would not give loot box games \u201cadults only\u201d ratings because it did not consider them to be gambling.<\/p>\n

Hassan is applying pressure on the ESRB to reconsider its position.<\/p>\n

Something of Value<\/strong><\/h2>\n

Just weeks ago, a federal court ruled that the games at Big Fish social casino constituted illegal gambling<\/a> under Washington State law because the play-money chips used in its casino-style games were \u201csomething of value\u201d and therefore could be classed as a gambler\u2019s \u201cstake.\u201d<\/p>\n

The definition of gambling in Washington state, as it is in many states across the US, is \u201crisking something of value on the outcome of a contest of chance or a future contingent event not under the person\u2019s control or influence to receive something of value in the event of a certain outcome.\u201d<\/p>\n

\n

As has been widely reported, the verdict has troubling ramifications for social casino industry. But social casino games are obvious targets because they are simulations traditional gambling games.<\/p>\n<\/div>\n

If virtual in-game items such as play-money chips represent \u201csomething of value,\u201d then loot boxes must also constitute illegal gambling, at least in Washington State, since they incorporate \u201cvaluable\u201d in-game items risked on games that contain elements of chance.<\/p>\n

The ruling in Washington State is eccentric and will be challenged \u2013 \u00a0with a good chance of success. But, until then, it\u2019s not just social casino operators who should be concerned.<\/p>\n","protected":false},"excerpt":{"rendered":"

Three South Korean games developers, have been hit with fines totaling nearly $1 million for misrepresenting the odds used in their in-game loot boxes. According to the Korean Herald, the country\u2019s largest games developer, Nexon Korea, received the lion\u2019s share of fines \u2013 around $890,000 \u2013 for deceiving customers over the chances of winning virtual […]<\/p>\n","protected":false},"author":36,"featured_media":75296,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[19,20,61],"tags":[],"acf":[],"yoast_head":"\nSouth Korean Companies Fined $1 Million Over Deceptive Loot Box Odds<\/title>\n<meta name=\"description\" content=\"Nexon Korea fined by South Korea authorities over deceptive odds in loot boxes in Counter Strike Online 2 and Sudden Attack. NextFloor and Netmarble also penalized. 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