Apple Faces Lawsuit Over Loot Boxes
June 17, 2020
In February, the Eastern District Court of North Carolina dismissed a lawsuit alleging that Epic Games misled consumers about the loot boxes in its online shooter game Fortnite.
“Courts have already ruled in related cases that virtual loot is not the functional equivalent of real money and this cannot be the basis for satisfying consideration — a key element required to find illegal gambling,” said Jeff Ifrah, a Washington, D.C. based attorney with Ifrah Law firm. Ifrah also questioned whether U.S. gaming regulators would take the position that certain video games that include a loot box would require a license and pursue enforcement action.
Ifrah said gaming regulators are “not looking to tackle a game possibly operating on the fringe of legality,” especially when several courts have found that they do not implicate states’ illegal gambling laws.