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Belgium Threatens Criminal Prosecution Over Loot Boxes
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Belgian Gaming Commission lays groundwork for prosecution as Belgian justice minister meets with stakeholders to find an alternative
The Belgian Gaming Commission (BGC) has suggested that criminal prosecution should be undertaken against Electronic Arts, Valve, and Activision Blizzard over loot boxes in their respective games.
With the release of its research report on loot boxes,the BGC has clearly defined the parameters of what does and does not constitute gambling, and the ways in which FIFA 18, Counter-Strike: Global Offensive, and Overwatch each contravene the legislation.
The report lays out recommendations of what steps should be taken next to handle the issue.
Although the BGC has suggested criminal prosecution first and foremost, it will not proceed until Belgian minister of justice Koen Geens has met with industry stakeholders to begin a dialogue on the issue.
Speaking with GamesIndustry.biz, BGC director Peter Naessens said: “We are going to take all preparatory measures for the drafting of police reports, but it’s not going to be tomorrow. There is a certain amount of time for the minister of justice, but it’s not unlimited.” – Peter Naessens, Belgian Gaming Commission director
Other recommendations from the BGC include developing specific permits for video games that feature loot boxes, and marking them accordingly. This is coupled with the suggestion of age verification in stores when purchasing codes or gift cards, and a principal ban on minors being able to purchase games featuring the mechanic.
Regarding distributors and operators, the BGC recommended that a clear indication of winning odds be provided and that its technical assessment team be granted complete control over the random number generators used for loot boxes.
Additional provisions over player data and payments were recommended, along with the introduction of a user spending limit.
License holders such as FIFA and Disney were also pulled up by the BGC, which suggested such companies pay closer attention to the sort of mechanics appearing in their games.
Unlike the Netherlands’ recent decision regarding loot boxes, the Belgian ruling does not consider the option to sell or trade the contents of loot boxes as an important factor when determining whether or not the mechanic might constitute gambling.
The BGC defines gambling as any game whereby a wager can lead to loss or win for at least one of the players, and where chance may even have a secondary role in the course of the game, the winner, or size of the winnings.
While its definition may appear less applicable to loot boxes than the Netherlands Gaming Authority, the BGC clearly defined the many ways in which the offending games are in breach of the legislation.
Taking Overwatch as an example: using real money, players can purchase loot boxes containing random collectable items, which constitutes a wager. The chance of a win or a loss concerns the wager itself versus the value of the items in the box. Despite being entirely aesthetic and not tradeable outside of the game, the items have player-ascribed value that is altered by artificial scarcity, limited edition items, and the four categories of rarity.
As Blizzard does not allow players to purchase credits directly, they are encouraged to purchase loot boxes containing in-game currency in order to obtain items faster than they would by just playing the game.
“The chance of losing your wager (the cost of the loot box) is, of course, ever-present now that testimonies and research have shown that players have a substantial chance of obtaining an object or item that they already own,” the report reads.
“Both in the purchase of loot boxes and in the entire operation of the game, all of this can lead to pure manipulation of individuals or groups of players” – Research Report on Loot Boxes, Belgian Gaming Commission
The BGC calculated that, should a player wish to collect every item, they would have to open somewhere between 1,300 and 1,600 loot boxes.
Considering the aspect of chance, things become a little murkier, though the BGC is operating on the understanding that players believe the content is determined by chance, even if there were no odds communicated directly.
“Both in the purchase of loot boxes and in the entire operation of the game, all of this can lead to pure manipulation of individuals or groups of players,” the report reads. “The line between encouragement and manipulation is sometimes difficult to differentiate in an online environment where one party (game manufacturer/game platform) records almost everything and the consumer who plays the game rather passively from this perspective.”
Blizzard did not respond to the commission’s requests for more information.
Many within the games industry have criticised the assumption that loot boxes which do not contain items of monetary value outside of the game constitute gambling, drawing comparisons to collectible card games such as Pokémon or Magic the Gathering.
“It might be considered as gambling, but in our legislation there is an exception for it,” Naessens told GamesIndustry.biz. “So Pokémon cards, if they are going to introduce a wheel of fortune, roulette, or a blackjack game in order to determine the contents, it will also be problematic and we will examine it as well.
“But in our legislation, card or party games are exempt from gambling [legislation]. If Pokémon cards were to introduce the gambling element to their game, it would be very problematic as well.”
Essentially, the BGC argues that players are “lured into betting money through loot boxes with a range of techniques”.
When making the decision, the BGC considered aspects such as social behaviour monitoring, as demonstrated with the “exploratory” patent filed recently by Activision which is designed to encourage microtransaction spending through player monitoring.
“If [Pokémon card] are going to introduce a wheel of fortune, roulette, or a blackjack game in order to determine the contents, it will also be problematic and we will examine it as well.” – Peter Naessens, Belgian Gaming Commission director
Other considerations include the “fusion of fiction and reality”, highlighting the use of the footballer Cristiano Ronaldo to advertise the most expensive loot boxes in EA Sports’ FIFA and “whitewashing the behaviour of the super-rich in the football world or the possibility of match-fixing”.
Tying into this point is the use of limited edition items to drive loot box sales, and the use of game-specific currencies that are “psychologically very sophisticated” and fully disconnect the value of real money from the value of in-game currency.
Game operators failing to enforce a spending limit, combined with readily giving away free loot boxes in order to attract players was also considered a dangerous aspect of the mechanic.
Despite a recent assertion from Electronic Arts CEO Andrew Wilson that FIFA 18 loot boxes do not constitute gambling, the clock is ticking and the publishing giant, along with Valve and Activision Blizzard, will invariably have to make changes or forgo the Belgian market entirely.
Although progress will be slow, momentum is gathering as gambling legislators from around the world turn their gaze towards the issue of loot boxes. According to Naessens, BGC has been in contact with officals in Spain, Germany, Finland, America, and Asia.
Source: gamesindustry.biz
Source: European Gaming Media and Events
The iGaming industry is advancing at breakneck speed, driven by technological innovation and evolving player expectations. Itai Zak, Executive Director of iGaming at Digicode, emphasizes the importance of bridging client aspirations with customized business solutions. Key trends shaping the future of iGaming include live dealer games, blockchain integration, artificial intelligence (AI) and machine learning (ML), enhanced personalization, and shifting regulatory environments. Let’s delve into how these trends influence the industry, presenting new opportunities while paving the way for future growth.
A Closer Look at Emerging Trends
- Live Dealer Games
Live dealer games are revolutionizing the online gaming experience, blending the best aspects of land-based casinos with the convenience of virtual gaming. Players can now engage with real-life dealers via high-definition video streams, enhancing the social component of online gambling. This bridge between physical and virtual casinos introduces interactive features like live chat and immersive gameplay. Industry leaders like Evolution Gaming and NetEnt are setting new standards in player engagement with innovative game formats and top-tier studio setups, redefining the realism and appeal of live gaming.
- Blockchain and Cryptocurrency Integration
Blockchain technology is transforming iGaming by offering unparalleled transparency and security. With blockchain’s ability to enable provably fair gaming, players can verify that each round is fair via an immutable ledger. Cryptocurrencies like Bitcoin and Ethereum facilitate faster, more secure transactions, catering to tech-savvy players who value privacy. Platforms like Bitcasino.io are leading the way, leveraging blockchain to ensure fairness and seamless payments. However, the rise of blockchain also attracts regulatory attention, requiring operators to balance innovation with compliance as governments navigate this new technology.
- Artificial Intelligence and Machine Learning
AI and ML are instrumental in enhancing player experience and operational efficiency. AI algorithms analyze player behavior in real-time, offering personalized game recommendations and promotions. Additionally, AI-powered chatbots provide instant customer support, improving user satisfaction. AI-driven predictive analytics also help operators fine-tune marketing strategies based on player preferences. Companies like Bet365 are already using these technologies to stay ahead of the competition, offering more personalized and efficient gaming experiences.
- Richer Personalization and Engagement
Personalization has become crucial for iGaming operators looking to boost player satisfaction and retention. By leveraging data analytics, companies can offer tailored game recommendations, dynamic bonuses, and individualized promotional offers. This level of engagement enhances the player experience and strengthens loyalty. Industry pioneers like DraftKings and FanDuel push the envelope by offering highly customized features, such as personalized fantasy sports leagues and bespoke betting options.
- Regulatory Changes and Market Expansion
The constantly evolving regulatory landscape offers both challenges and opportunities for iGaming operators. As more regions legalize various forms of online gambling, companies gain access to new markets. With their large populations and increasing internet penetration, emerging markets like Brazil and Nigeria represent lucrative opportunities. However, navigating the diverse regulations in these markets requires agility and strict compliance with local laws to succeed.
- Enhanced Payment Solutions
With digital transactions becoming the norm, the demand for fast, secure, and flexible payment methods is skyrocketing. From digital wallets to instant banking and cryptocurrencies, players expect payment solutions that offer convenience and security. This growing demand is driving innovation in payment processing, giving operators more opportunities to streamline the transaction process while building trust with users.
Future Implications
The Expanding Role of AI and Blockchain
AI and blockchain are not just current trends, but they are poised to play an even more significant role in iGaming’s future. As AI technology evolves, more sophisticated algorithms will emerge, enabling real-time adaptation to player behavior and preferences. Blockchain’s application may extend beyond transparency and security, transforming game mechanics and player interactions potentially redefining how games are designed and played.
Shifting Player Preferences
Player expectations will continue to evolve toward immersive, interactive experiences. As Virtual Reality (VR) and Augmented Reality (AR) become more mainstream, they will significantly influence the future of iGaming. Players will demand more engaging, lifelike environments, pushing the industry to create innovative game formats and features that offer deeper immersion and entertainment value.
Regulatory Developments
The regulatory environment will continue to evolve, and iGaming operators must stay agile to navigate future changes. New regulations may increasingly emphasize responsible gaming and player protection, influencing platform design and operational practices. A more harmonized regulatory framework across jurisdictions could provide stability while requiring operators to prioritize compliance.
Integrating Emerging Technologies
Technologies like 5G and edge computing are set to revolutionize iGaming by enabling faster, more reliable connectivity. This will allow for more complex game designs and real-time player interactions, opening new avenues for innovative gaming experiences. As these technologies mature, operators will have greater opportunities to differentiate their offerings. The potential of these emerging technologies to revolutionize iGaming is truly exciting and promising for the industry’s future.
Final Thoughts
The iGaming industry is on the cusp of significant transformations, driven by technological advancements and shifting player demands. Innovations like live dealer games, blockchain integration, AI, ML, and enhanced personalization are just the beginning. As the industry evolves, staying ahead of these trends will be critical for operators looking to thrive in an increasingly dynamic environment.
At Digicode, we are constantly exploring new technologies and refining our solutions to meet the evolving needs of our clients. Our focus on adaptability and foresight ensures that our clients are not just keeping pace with the industry—they’re leading it.
The post Innovations Redefining iGaming: What Operators Need to Know appeared first on European Gaming Industry News.
A partnership between game developer Turbo Games and iGaming solution provider and aggregator Slotegrator began in November 2022 via the APIgrator game integration solution. Since then, the collaboration has been developing successfully — and now it’s time to analyze what made it successful.
Turbo Games has noticed how the new technologies spreading throughout the industry can work for the good of brand transparency and player loyalty: “We can already see how blockchain technology has made it possible to make betting checks more accessible to players. All you need is a blockchain-hash and a decoder service. We think we will continue to move in this direction. Many traditional online casinos do not offer the possibility to check the bet. Sooner or later we all have to come to this. Perhaps the development of artificial intelligence will help here, because we are already seeing its involvement in all spheres of human life.”
Turbo Games specializes in provably fair games. Provable fairness is a concept where players can verify their wins or losses using blockchain technology — the outcome of the game is dictated by a smart contract and is absolutely random, barring the possibility of any human involvement. Using cryptographic hashing algorithms, the gambling site and the player’s device both generate seeds (random strings of numbers). Players receive a key that allows them to check the results; if the results are the same as the game round they witnessed, it proves that there was no foul play.
According to statistics from Turbo Games, the audience for provably fair games is mostly between 18 and 25 years old. However, there are also players aged 35-40 who prefer traditional games but would like to try something new, and have turned their attention to provably fair games.
There are good odds that the technology of provably fair games will become more popular, if not even commonplace, because it gives players a feeling of transparency and proves that the business is trustworthy without the need to search through dozens of reviews. Whereas many innovations in iGaming simply add entertainment, provable fairness addresses security concerns and reassures players that they’re not being exploited, which is invaluable.
Provably fair games are beneficial for both players and online casinos. Vadim Potapenko, Head of Sales at Turbo Games, comments: “It often happens that the users are not satisfied with the result, because gambling is not only about big wins, but also possible losses. By allowing them to check the fairness of a bet, we make life easier for platforms and players. Of course, this allows us to communicate with partners and users that we work honestly and that’s why they should trust our games.”
Ayvar Gabidullin, Business Development Manager at Slotegrator, adds that “this type of game is now becoming more and more popular and has great potential for both players and game providers in the future. On the part of the player, the advantage is that the player can always be sure that his game is fair and he can independently check any of his bets. And for the game provider, this also simplifies the process of implementing casino games, since now it will not be necessary to obtain the appropriate certificates from independent laboratories before launching new games, they can immediately enter the market with these games and where anyone can check the result and make sure that that there is no cheating with players. Many game providers are starting to look towards this type of game. And as far as I see, many operators are starting to think about adding these games.”
What do players in 2023 need? The iGaming industry is all about reputation and trust. Players have a huge number of platforms to choose from, making them pickier and pickier. There’s an abundance of forums where players leave reviews, so if players view a brand as untrustworthy, there are plenty of places they can share their opinion. Provable fairness not only stops that from happening, it provides evidence to the contrary, giving players something else to talk about.
Slotegrator also recommends investing time and effort into localization and creating an effective and detailed marketing strategy — before trying provably fair technology players need to get to the platform, and there is no acquisition without marketing.
ABOUT SLOTEGRATOR
Since 2012, Slotegrator has been one of the iGaming industry’s leading software and business solution providers for online casino and sportsbook operators.
The company’s main focus is software development and support for online casino platforms, as well as the integration of game content and payment systems.
The company works with licensed game developers and offers a vast portfolio of casino content: slots, live casino games, poker, virtual sports, table games, lotteries, casual games, and data feeds for betting.
Slotegrator also provides consulting services in gambling license acquisition and business incorporation.
More information: https://slotegrator.pro/
ABOUT TURBO GAMES
Turbo Games — a provably fair games provider that belongs to Turbo Stars company — has an ambitious goal to establish widespread recognition throughout the iGaming world. Even though it is young, the company consists of professionals who have been working on the brand for over five years and are even planning to introduce a new brand for a wider audience soon.
Turbo Games also works in Europe, India, and South Africa, where the company sees the most potential and expects the same “hype” as in Brazil.
The portfolio of Turbo Games consists of 21 titles, including well-known games like Mines, Crash X, DoubleRoll, Hi-Lo, and Plinko. The studio releases a game every month. However, not all games are developed from scratch. Wicket Blast and Spin Strike, the last two releases, are based on cricket and the Indian Premier League. Crash X remains the most popular fast game in the Turbo Games portfolio, and the studio reports that crash games enjoy stable levels of popularity. Overall, the main focus of the brand is provably fair games.
More information: https://turbogames.io/
Looking to take your career to the next level in the games industry? Then, Nordic Game Talents is the place to be! Games Factory Talents has teamed up with Nordic Game to bring you Nordic Game Talents.
From Oct 27-29, the online and interactive event is dedicated to recruitment and career building in the creative & games industry within the Nordic region. The event empowers participants to be part of a bigger community and motivates them to explore new paths in achieving their career goals.
Hiring creative & games studios – Supercell, Funcom, Panzerdog, Tactile Games, Gamecan, Fingersoft, Dazzle Rocks, Redhill Games to name a few from the Nordic region will be participating in the event. These studios will share information on their latest projects, work culture and what it takes to be part of their team. The individual games associations from Finland, Denmark, Sweden, Norway and Estonia will share insights through live sessions on the booming games industry in their respective countries. Career development topics pertinent to job seekers like – How to have a successful first interview, Creative Portfolio reviews will also be discussed.
Experienced game industry professionals and individuals beginning their careers from around the world are welcome to join the event. One-to-one interviews with the hiring studios can be scheduled through the event platform. A great opportunity to get to know the studios and network with game professionals from around the world.
Participating in the event
As a job seeker attending Nordic Game Talents, take a few minutes to fill out a simple registration form. After filling the registration form you will receive a link to the online event platform – PINE, to join the event on 27th October. Participants joining Nordic Game Talents will also receive a free-of-charge pass to the Nordic Game Conference.
To view the complete agenda, please click here and to learn more about the event please visit Games Job Fair
About Games Factory Talents
A Helsinki-based talent attraction agency dedicated to the games & creative industry. Our services include direct recruitment, organizing game job fairs and managing a community of game industry professionals through our GameDev Talent Board.
To learn more about Games Factory Talents visit – Games Factory Talents
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