EA has said it will appeal a ruling from Dutch authorities over loot boxes in FIFA after it was fined up to €10m.
In a mid-October ruling, judges at the Court of The Hague authorised the Netherlands Gambling Authority (KSA)'s enforcement of the fine, first imposed in 2019, and published today.
UEFA Champions League. Dreams are achieved and legends are made in this historic tournament showcasing the best clubs in the world. FIFA 19 is infused with the UEFA Champions League, thanks to official match presentation, a variety of tournament experiences and an all-new commentary team in Derek Rae and Lee Dixon. Gamersaloon has been one of the longest running gaming websites. It has a great reputation for playing FIFA for money. On either console or PC you can play head to head or Ultimate team v people in daily and weekly tournaments or simply challenge friends or people on the site.
EA has three weeks from the date of the order (15th October 2020) to change the way FIFA 19, FIFA 20 and FIFA 21 works in the country. So, in effect, it has one week to make a change to its most recent FIFA games. If it refuses to make a change, EA must pay €500,000 per week, up to a maximum penalty of €10m, in fines. Real money online casinos.
The Netherlands Gambling Authority declared loot boxes illegal because they are considered a game of chance, and therefore violate the country's Gambling Act. Under Dutch law, a game of chance that allows a prize or premium to be won can only be provided if a relevant licence has been granted.
FIFA lets players spend real-world money on Ultimate Team packs, which contain a random assortment of players for use online against other human opponents as well as against the computer. FIFA has been accused of being pay-to-win and for encouraging children to gamble because of this mechanic, which is highly lucrative for EA.
Fifa 19 Gambling Sites
According to video game industry analyst Piers Harding-Rolls, the FIFA game franchise is a $2bn annual business for EA, with the majority of revenue coming from Ultimate Team sales.
Netherlands & Belgium clampdown on loot boxes in games has seen multiple games remove them in these markets. EA already stopped paid for FUT player packs in Belgium
Not ideal for EA. I estimate the FIFA game franchise is a bn annual business, a majority coming from FUT sales https://t.co/D4FYw16Cro
A study carried out by the KSA in 2018 found there may be a correlation between playing games that incorporate loot boxes and development of an addiction to gambling. Chairmen René Jansen said at the time: 'The KSA believes it is crucial to shield vulnerable groups, such as minors, from exposure to gambling. For that reason, the KSA supports a strict separation between gaming and gambling. Gamers are often young and therefore particularly susceptible to developing an addiction. As such, gambling elements have no place in games.'
The KSA said it called on companies in the gaming industry to adapt their games so they were no longer infringing the Gambling Act. 'A number of companies heeded the KSA's call,' it said. 'However, Electronic Arts Inc. Free texas holdem card games. and Electronic Arts Swiss Sàrl did not.'
In a statement issued to Eurogamer, EA repeated its claim that FIFA loot boxes do not violate gambling laws, and vowed to issue an appeal.
'Players all over the world have enjoyed FIFA and the FIFA Ultimate Team mode for many years and as such, we are disappointed by this decision and what it may mean for our Dutch community. We do not believe that our products and services violate gambling laws in any way. We are appealing this decision and we seek to avoid a situation impacting the ability of Dutch players to fully experience and enjoy FIFA Ultimate Team.
'Electronic Arts is deeply committed to positive play. We seek to bring choice, fairness, value and fun to all our players in all of our games. Starburst slot. We remain open to discussions with the Netherlands Gambling Authority and other stakeholders to understand and explore solutions to address any concerns.'
In January 2019, EA stopped selling FIFA Points in Belgium following government pressure over loot boxes.
In September 2018, the Belgian government, which had already declared loot boxes to be a form of gambling, launched a criminal investigation into EA after the publisher refused to modify FIFA's randomised card pack loot boxes in order to comply with the country's gambling laws.
Belgium's Gaming Commission determined loot boxes found in FIFA 18, Overwatch and Counter-Strike: Global Offensive were an 'illegal game of chance', and thus subject to Belgian gambling laws.
Following the ruling, Blizzard, Valve and 2K Games all elected to disable loot boxes in their games in Belgium. EA, however, refused to budge until January 2019.
FIFA loot boxes are currently not considered a form of gambling in the UK, although the government is taking a close look at them in that context.
In 2018, EA came out strongly in saying it didn't believe loot boxes were a form of gambling. In April 2018 it said its games were 'developed and implemented ethically and lawfully around the world' and it did not agree they could 'be considered as any form of gambling'. This, EA CEO Andrew Wilson said in May 2018, was because 'players always receive a specified number of items in each pack' and because it doesn't 'provide or authorise any way to cash out or sell items or virtual currency for real money'.
However, as Eurogamer has reported, when it comes to FIFA, you can most definitely cash out.
For FIFA 19, EA added FUT card pack probabilities for the first time. This system tells you the percentage chance you have of obtaining a card of a certain quality from a pack (for some cards, the percentage chance is shockingly low). This was seen as an attempt to add transparency to Ultimate Team, which makes a billion dollars a year for EA.
Two men who admitted to running an unlicensed betting website have been fined after pleading guilty to gambling offences.
Netherlands & Belgium clampdown on loot boxes in games has seen multiple games remove them in these markets. EA already stopped paid for FUT player packs in Belgium
Not ideal for EA. I estimate the FIFA game franchise is a bn annual business, a majority coming from FUT sales https://t.co/D4FYw16Cro
A study carried out by the KSA in 2018 found there may be a correlation between playing games that incorporate loot boxes and development of an addiction to gambling. Chairmen René Jansen said at the time: 'The KSA believes it is crucial to shield vulnerable groups, such as minors, from exposure to gambling. For that reason, the KSA supports a strict separation between gaming and gambling. Gamers are often young and therefore particularly susceptible to developing an addiction. As such, gambling elements have no place in games.'
The KSA said it called on companies in the gaming industry to adapt their games so they were no longer infringing the Gambling Act. 'A number of companies heeded the KSA's call,' it said. 'However, Electronic Arts Inc. Free texas holdem card games. and Electronic Arts Swiss Sàrl did not.'
In a statement issued to Eurogamer, EA repeated its claim that FIFA loot boxes do not violate gambling laws, and vowed to issue an appeal.
'Players all over the world have enjoyed FIFA and the FIFA Ultimate Team mode for many years and as such, we are disappointed by this decision and what it may mean for our Dutch community. We do not believe that our products and services violate gambling laws in any way. We are appealing this decision and we seek to avoid a situation impacting the ability of Dutch players to fully experience and enjoy FIFA Ultimate Team.
'Electronic Arts is deeply committed to positive play. We seek to bring choice, fairness, value and fun to all our players in all of our games. Starburst slot. We remain open to discussions with the Netherlands Gambling Authority and other stakeholders to understand and explore solutions to address any concerns.'
In January 2019, EA stopped selling FIFA Points in Belgium following government pressure over loot boxes.
In September 2018, the Belgian government, which had already declared loot boxes to be a form of gambling, launched a criminal investigation into EA after the publisher refused to modify FIFA's randomised card pack loot boxes in order to comply with the country's gambling laws.
Belgium's Gaming Commission determined loot boxes found in FIFA 18, Overwatch and Counter-Strike: Global Offensive were an 'illegal game of chance', and thus subject to Belgian gambling laws.
Following the ruling, Blizzard, Valve and 2K Games all elected to disable loot boxes in their games in Belgium. EA, however, refused to budge until January 2019.
FIFA loot boxes are currently not considered a form of gambling in the UK, although the government is taking a close look at them in that context.
In 2018, EA came out strongly in saying it didn't believe loot boxes were a form of gambling. In April 2018 it said its games were 'developed and implemented ethically and lawfully around the world' and it did not agree they could 'be considered as any form of gambling'. This, EA CEO Andrew Wilson said in May 2018, was because 'players always receive a specified number of items in each pack' and because it doesn't 'provide or authorise any way to cash out or sell items or virtual currency for real money'.
However, as Eurogamer has reported, when it comes to FIFA, you can most definitely cash out.
For FIFA 19, EA added FUT card pack probabilities for the first time. This system tells you the percentage chance you have of obtaining a card of a certain quality from a pack (for some cards, the percentage chance is shockingly low). This was seen as an attempt to add transparency to Ultimate Team, which makes a billion dollars a year for EA.
Two men who admitted to running an unlicensed betting website have been fined after pleading guilty to gambling offences.
During a hearing at Birmingham magistrates court, Craig Douglas, 33, of Ilford, Essex—a YouTube gamer who's alias is 'NepentheZ'—and Dylan Rigby, 34, of Colchester, Essex—who founded FUT Galaxy—admitted to operating an unauthorised site that allowed video gamers to place bets using virtual currency.
The FutGalaxy.com site, which is not affiliated with EA Sports or the FIFA series, allowed users to buy virtual currency, called FUT coins, for use in the FIFA series of video games, specifically in the FIFA Ultimate Team mode, said the Gambling Commission—which brought the prosecution.
Customers could then use those FUT coins to gamble by placing bets on matches that took place in the game. The winnings could then be converted into FIFA coins, another virtual currency used in the FIFA series, which in turn could be sold for real money on an unauthorised secondary market in which Rigby also had an interest. This also violated EA's Terms of Service agreement.
Advertisement'FutGalaxy.com offered gambling products including sports betting, a jackpot lottery style game, and a higher or lower style game,' the UK's gambling watchdog said. 'The full extent of the gambling operation facilitated and advertised by the defendants was revealed after the commission executed search warrants at the defendants' homes and seized a number of electronic devices and company documents.'
Rigby has been ordered to pay £174,000 in fines and costs, while Douglas has been saddled with a £91,000 fine, after both men pleaded guilty to offences under the UK's Gambling Act.
'This was one of the most serious cases that has been investigated and prosecuted by the commission,' the watchdog's chief Sarah Harrison said.
'Its gravity is reflected in the significant financial penalties imposed by the judge. The defendants knew that the site was used by children and that their conduct was illegal but they turned a blind eye in order to achieve substantial profits. The effect on children of online gambling was rightly described by the court as 'horrific' and 'serious.'
Fifa 19 Gambling Sites
The commission has been eyeballing the rise of online video game gambling.
In a series of tweets following the fine, Douglas said: 'I owe a huge apology to my family and close friends for putting them through this process, and appreciate all those that stood by me.. I also owe a huge apology and debt of gratitude to my loyal supporters. Even if this is the end of our journey together, I'm grateful.'
