Get help resolving your EA game issues. Read help articles, troubleshooting steps, or open a support ticket to get back in the game. Electronic Arts is facing a class-action lawsuit that argues the Ultimate Team mode in its sports games breaks gambling law. The lawsuit has been filed in the Northern District of California, and specifically cites the state’s gambling laws as proof that games such as FIFA and Madden should be governed by them.
The Aug. 13 class-action lawsuit (Kevin Ramirez vs Electronic Arts) reflects the still unanswered questions about online game loot boxes in the U.S. and internationally. For several years, concerns that they may promote gambling rather than gaming have been debated.
Some countries have examined regulating loot boxes. Others are offering policy and implementation recommendations. And some countries are imposing restrictions or bans on loot boxes.
On Aug. 7, 2019, the Federal Trade Commission (FTC) held a workshop in Washington, D.C., on the implications of video game loot boxes and related microtransactions. The FTC has the matter under review is taking a close look at content creators and the platforms they use.
Also, the video game industry has engaged in some self-regulation, through the Entertainment Software Rating Board (“ESRB”) rating system, in some cases disclosures of in-game purchase odds and parental control features.
A class-action lawsuit was filed in the U.S. District Court for the Northern District of California on Aug. 13, 2020. Kevin Ramirez vs Electronic Arts, Inc., is the latest in a flurry of lawsuits, which are challenging the online gaming loot box phenomenon, game developers, platforms and app stores that make them available to consumers.
On June 12 in the Northern District of California, San Jose Division, two separate class-action suits were brought against Google, LLC, as well as, Apple, Inc.
The July 12 filings both cited California legislation Cal. B & P Code § 19801(c) which states: “Gambling can become addictive and is not an activity to be promoted or legitimized as entertainment for children and families.”
Google and Apple both receive a part of the proceeds from in-app loot boxes in games sold or offered free through “Google Play” and the Apple “App Store.”
The lawsuits claim that these profits are made with “predatory practices enticing consumers, including children to engage in gambling and similar addictive conduct in violation of this and other laws designed to protect consumers and to prohibit such practices.”
Loot boxes are in-game rewards that contain a random assortment of virtual items. These items usually assist players in advancing in the online game. They may also be items that customize the player’s game dashboard, or avatar.
Players can pay for a loot box sometimes with virtual currency. But the lawsuits and ongoing disputes are over the loot boxes which are bought with real money. The real money transactions are also known as “micro-transactions” and “in-app purchases.”
The lawsuits claim that games that offer a gamer the opportunity to pay for a randomized chance of obtaining better weapons, player skins, or other in-game features to improve gameplay is arguably operating as a gambling device.
Loot boxes produce a growing revenue stream for game developers and the platforms on which they are sold. For example, Google Play and the Apple App Store receive 30% of the in-app purchase amount.
The concern is that techniques used to market loot boxes may be addictive. And whether there is a negative impact on minors to these in-game purchases.
There are credible claims that loot boxes create and reinforce addictive behaviors in players, particularly youthful ones.
Loot boxes generated up to $30 to $40 billion in 2018, this amount is expected to increase to about $50 billion by 2022.
The FIFA game series is one of the high earners through their loot boxes. FIFA was developed by Electronic Arts (EA).
EA is a California-based game development company, headquartered in Redwood City. They are the second-largest game company. Activision Blizzard is the largest. In addition to FIFA, some of their best-known game creations include a myriad of hit series games like The Sims, Star Wars Battlefront, Battlefield, Need For Speed, Mass Effect, and many others.
Electronic Arts Gambling
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Electronic Arts Gambling On The Future Of Video Games
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After a similar lawsuit was filed in California, video game publisher Electronic Arts (EA) is facing more legal action in the form of a class-action lawsuit filed in Canada.
The joint Plaintiffs, Mark Sutherland and Shawn Moore, assert that the Criminal Code of Canada prohibits unlawful gaming, betting, lotteries, and games of chance and that a mechanic called “loot boxes” fit that description.
Loot boxes are used in more than 60 games published by EA (and are rampant in the industry as a whole) including mobile games, major sports game releases like the Madden NFL, FIFA, and the NHL series, and more. Users can spend real money on an item that when redeemed, has a randomized chance to contain a further series of virtual items. The issue comes from loot boxes having no guarantee of containing items of a certain value. You spend money in the hopes of getting an item of value or an item you want (which sounds an awful lot like gambling).
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Also, while it isn’t mentioned as an issue directly related to the lawsuit, there are also reports of predatory practices being implemented into the system including a so-called “pity timer”, which increases the odds of getting a better item if you haven’t received one after a certain threshold. This might sound positive, however, what it actually means is that opening more loot boxes gives you better odds, which translates to: spend more money to increase your chances of winning.
Since EA doesn’t hold a gambling license in either region the plaintiffs are from (British Columbia and Ontario), Sutherland and Moore are seeking damages and is also being filed on behalf of any other Canadian customer who purchased, directly or indirectly, a loot box in an EA title.
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