On May 1, the Spain government declared that it would seek to regulate video game “loot boxes”, claiming that they were a form of gambling, and could lead to addiction. Consumer Affairs Minister Alberto Garzon stated that in the upcoming weeks, the government would control the components of games that allowed its users to claim rewards that held monetary value in real or virtual markets.

Also read: Spain Wants Public Input on Loot Boxes as the EU Considers Crackdown

The Ministry of Consumer Affairs (MCA) in Spain had previously published a public discussion regarding the “predatory” and “manipulative” nature of loot boxes. As the functioning of loot boxes is similar to that of slot machines, players are required to use in-game currency to try their luck at winning scarcely secured prizes. While the usage of NFTs and cryptocurrencies is widely prevalent, the value of these prizes can also be exchanged or resold. The in-game currency, which is purchased using real money, is also an important source of revenue for game developers.

Garzon continued to express his belief that besides the underage target audience of these loot boxes being problematic, it induced compulsive consumption behaviour. He named a number of issues it could result in, such as a gambling addiction, stress, and financial losses.

Spain is paving the way to be the first ever European country to draft a bill for this cause. However, Europe has a history of discourse surrounding the matter, as consumer groups in 18 European countries demand a ban on video game loot boxes, considering them a form of gambling. Even though a court in the Netherlands recently proclaimed that loot boxes weren’t a form of gambling, most game developers remain sceptical and wish to eliminate these risks.