Games: Bundesrat calls for tougher action against rip-offs

The Bundesrat is calling for a tougher stance in the fight against rip-offs through gambling-like mechanisms in video and online games. In a resolution adopted on Friday, the chamber of states is calling on the federal government to regulate loot boxes more strictly and to tighten age controls, for example. The focus is primarily on virtual surprise boxes, which players can usually buy with game currency previously acquired with real money to unlock new helpful items or abilities.

Buyers cannot win real money. They only receive virtual items. Therefore, it is legally controversial whether loot boxes should be classified as gambling. For this reason, the federal government is to examine the extent to which they exhibit gambling-like mechanisms and, if necessary, regulate them within the framework of child and youth protection.

Specifically, the Bundesrat asks the federal executive to expand the Youth Protection Act in line with the gambling laws of the states. As a possible measure for more effective youth protection, the states propose age verification from 18 years for games with loot boxes. In addition, the Federal Centre for Health Education is to develop informational materials to educate parents and young people about the dangers of these mechanisms.

Numerous laws in the final round

The Bundesrat is aware that national regulation would have little effect on games developed for the European or global market. Therefore, it asks the federal government to advocate for a more transparent cost structure and the disclosure of win probabilities in video games at the European level within the framework of the planned Digital Fairness Act. The resolution now goes to the federal government. There are no legal deadlines for the federal government on when and how it must respond.

Since the recent major amendment to the Youth Protection Act, institutions of voluntary self-regulation and certified youth protection officers must consider additional functions of a game, not just the content. Costs traps, for example through in-game purchases and loot boxes, as well as "gambling-simulating elements" should also lead to a higher age rating for computer games. The Bundestag tried to clarify this by focusing on additional information ("descriptors").

In addition, 23 laws already passed by the Bundestag were on the agenda of the chamber of states. For example, it approved the $(LB4977336:draft for the implementation|_blank)4 of the EU directive on network and information security, dubbed NIS2. The most controversial point is the tightened "Huawei clause": In the future, the Federal Ministry of the Interior may prohibit the use of critical components from a manufacturer by operators of critical facilities in consultation with the federal ministries responsible for the respective sector and the Federal Foreign Office. The new regulations on the return of electronic waste and e-cigarettes, on better social protection for parcel deliverers, and on the storage of CO₂ in the ground (CCS technology) also passed the Bundesrat smoothly.

(dmk)