Last month, the New York Attorney General (NYAG) brought a lawsuit against Valve accusing the company of promoting “illegal gambling” through its randomized in-game loot boxes. On Wednesday, Valve issued its first public comment on the case, comparing its digital loot boxes to randomized real-world purchases like blind-bagged toys or packs of trading cards.
“Generations have grown up opening baseball card packs and blind boxes and bags, and then trading and selling the items they receive,” Valve wrote. “On the physical side, popular products used in this way include baseball cards, Pokemon, Magic the Gathering, and Labubu.”
Though that may seem like an apt comparison on the surface, Valve’s loot boxes differ from these real-world examples in large part because of Valve’s control of the Steam Marketplace, which serves as the only legitimate way to exchange or resell those items. While owners of real-world items are free to trade or sell them however they want, Valve has cracked down on many third-party sites that enable the exchange of in-game items—especially when those items are used as glorified chips for gambling games.
Lawyers told Ars last month that Valve’s control of that marketplace—and its 15 percent commission on item resale—helps establish the inherent economic value of the randomized items it sells, both to players and to Valve itself. That could be a crucial legal element in a courtroom in turning a mere “random purchase” into legally defined “gambling.”
Games of Chance vs games of skill.
“But poker is a game of skill!”
No it fucking isn’t. You can mitigate your losses by folding early or bluffing, but you can not guarantee a win by being “better” when the luck of the draw is still against you, unless you’re counting cards.
I still believe that is too broad of a definition. I go back to carnaval games. Those are games of skill but they are made in away to reduce your chance of winning, so luck is still a major factor.
Meanwhile loot boxes are neother a game of chance or a game of skill. They are a purchase and you get what you get. What are those mystery box toys called that everyone was going crazy for last year? LuLu dolls or whatever. Those are loot boxes. Should we regulate them like we are trying with video game loot boxes?
I would narrow this down to including monetary cost and reward.
A game of primarily chance, such as slots, roulette, poker, blackjack, or even MTG’s Ante variation where something of value is offered (money, chips, resellable cards) and something of value is rewarded would be gambling. Note that chance would be a primary mechanic of the game, but skill may still be involved.