Why does Valve have to pay 14k to a CS:GO player?

Valve had to pay or refund 14,000 euros to a CS player from Austria because the player had spent 14,000 euros on opening loot boxes. The Austrian court had recognized loot boxes as a form of gambling.

This ruling has set a precedent for future cases in the country. Apparently Valve can still appeal the decision, but it looks more like a permanent ruling.

Valve must pay player back his money

Padronus and Salburg, the law firm representing the CS player, claimed that an appeal would have pretty poor chances because they have already won a similar case against EA and FIFA. Richard Eibl, the managing director, added that “tens of millions of euros in annual revenue” were at stake for the developer. Eibl also noted that they were lucky with the judge in the case, as he was familiar with video games and CS and understood the case immediately without having to explain it to him.

Austria has a state monopoly on gambling, which means that all companies must operate with a license. Valve is known for not appealing and complying with court requests and taking the issue of loot boxes and in-game cosmetics seriously – especially since a 2016 lawsuit accusing Valve of exposing children to gambling.

Which countries will take action against loot boxes?

In recent years, the EU has been increasingly concerned with the protection of underage players. This applies in particular to game elements that offer gameplay benefits for real money, such as loot boxes and pay-to-win elements.After countries such as Belgium and the Netherlands have already introduced regulations or bans on such game elements, the European Parliament is now seeking EU-wide regulations to protect underage players.In Germany, the federal states have blocked several hundred foreign poker and casino offers on the Internet in recent years and are planning further bans. One of the main reasons for these measures is to protect citizens from fast, addictive forms of gambling.The countries are also attempting to block payment transactions to these foreign providers in order to strengthen the enforcement of the bans

With this case, Austria is now another country that heavily restricts and regulates loot boxes. In China, the odds behind randomized gambling mechanisms must be declared. In the UK, gambling is still legal, but underage users must be protected by parental controls. It is quite possible that other countries will soon join this list and also take stricter action against loot boxes and the like.