An Austrian court has determined that Counter-Strike cases qualify as "loot boxes" and amount to unlawful gambling.
A fascinating event has recently taken place in Styria, Austria, where a court ruled that Counter-Strike: Global Offensive developer Valve must pay back €14,096.58 (around $15,3k) to a player who spent that amount on in-game weapon cases, determining that they qualify as loot boxes and, a such, amount to unlawful gambling in Austria, a country well-known for its strict stance against loot box practices.
For those who might not be aware, CS:GO and CS2's weapon cases are luck-based loot boxes containing weapon skins, gloves, and knives that can either drop randomly as you play, traded for, or purchased on a variety of marketplaces. Since the contents of each opened case are determined at random, Salburg law firm and litigation financier Padronus successfully argued that these weapon crates should be deemed illegal gambling, with the court siding with the plaintiff's argument and concluding that Valve should refund the money.
Richard Eibl, Padronus' Managing Director, further noted that the overseeing judge, having personal experience with Counter-Strike, quickly comprehended the details of the lawsuit, making it much easier for the plaintiff to make its case.
"The Valve Corporation is now the second video game provider after the FIFA game operators to be proven to offer illegal gambling in Austria," commented Eibl (via Games Wirtschaft). "According to various studies, Valve generates around one billion in sales through Counter-Strike loot boxes. The Austrian market share is not insignificant, as Austrians are very fond of gambling compared to other countries."
While Valve has a four-week window to appeal the decision, the likelihood of changing the court's ruling is slim to none. Speaking to Dexerto, Padronus stated that, "If [Valve] appeal, their chances to win are almost zero, since we already have a second instance judgment regarding the illegality of loot boxes which we won against Sony and Electronic Arts."
"The recent decision that loot boxes are gambling marks a significant step towards consumer protection and transparency in the field of video games," stated Salburg lawyer Katharina Kraemer. "The ruling reflects possible concerns about gambling elements and highlights the need to protect players, particularly minors, from potential risks."
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