An investigation of loot boxes in 10 video games conducted by the Dutch Gaming Authority (Kansspelautoriteit, Ksa) in 2018 determined that four of them were in violation of the country's gambling laws and needed to be changed. The names were not revealed at that time, but they were warned that if the necessary changes were not made by June 20 of that year, "enforcement action" would be taken.

In a statement released today, the KSA said that while most of the companies involved in the matter complied as required, Electronic Arts did not, resulting in a fine of up to 10 million euros (about $11.7 million): the consequences, Electronic Arts was to pay up to 10 million euros (about $11.7 million) in fines (5 million euros to EA itself and 5 million euros to EA Switzerland, which handles payments in some countries).

"Electronic Arts Inc. and Electronic Arts Switzerland violated gaming laws through their packs of the video game FIFA. The law states that games of chance may not be offered without permission. 'Games of chance are high-risk products and can only be offered under strict conditions. Electronic Arts Inc. and Electronic Arts Suisse have no license to offer games of chance.

"The order subject to the penalties was imposed to force both companies to cease their violations; the KSA found the violations of the law to be particularly serious, given that large numbers of children and young adults have access to packs of FIFA games and are particularly likely to develop gambling addictions.

The fine was actually imposed in 2019, but EA brought the matter before the court (via Google Translate), arguing that the FIFA game loot boxes were not a violation of the law because they were not games of chance as defined in the Gaming and Betting Act. EA also argued that FIFA is not a game of chance game of skill, not chance, and that the addition of the element of chance did not change its fundamental nature, and that the items in the FIFA packs had no monetary value outside of the game.

However, the Hague District Court disagreed, ruling that FIFA met all the requirements necessary to be defined as a game of chance under the Gaming and Betting Act, paving the way for the KSA to impose penalties.

"Plaintiffs offer games of chance (loot boxes) online that are part of a game of skill. The Gaming Authority (Ksa) correctly concluded that they meet the definition of games of chance within the meaning of the Gaming and Gaming Act," the ruling stated.

"In light of this qualification, and in light of the prohibition against offering online games of chance without a license, the Ksa has the authority to proceed with enforcement. This authority has been properly exercised. The enforcement decision is lawful and reasonable. The appeal is unfounded.

"The KSA believes that it is important to protect vulnerable populations such as minors from gambling. Adults likewise need to be aware of what type of gambling they are engaging in. This is one reason why the KSA believes that a strict distinction must be made between games and games of chance. Games of chance are high-risk products and are prohibited from being offered without a license," the regulator said in a statement.

It also took a bit of a swipe at EA, advising FIFA players to talk to EA if they have any problems resolving the issue.

"The provider of the game is the party that decided to include a gambling game in the game and thereby broke the law; KSA has pointed this out to Electronic Arts and Electronic Arts Switzerland on numerous occasions. Therefore, Electronic Arts and Electronic Arts Suisse have a responsibility to change the game so that it does not violate the law. How exactly this is accomplished is left to their discretion."

Update: Electronic Arts has confirmed that it will appeal the ruling. Dirk Scholing, Country Manager of EA Benelux, told VGC, "Players around the world have enjoyed FIFA and FIFA Ultimate Team mode for many years.

"We do not believe in any way that our products and services violate gambling laws. We are appealing this decision and want to avoid a situation where players in the Netherlands can fully experience and enjoy FIFA Ultimate Team."

Thanks, GamesIndustry.