EA Loot Boxes Are Essentially Gambling, Class Action Says

A California class action lawsuit says EA Games’ enticement of video gamers to purchase loot boxes amounts to encouraging them to gamble.

Plaintiff Kevin Ramirez of California says he has owned and played FIFA’s Ultimate Teams and Madden NFL Ultimate Teams games for Xbox since 2011 and 2013, respectively.

Ramirez says as a result of EA Games’ conduct, he has been “induced to spend money” in order to purchase in-game loot boxes and estimates he has spent more than $600 on the loot boxes “in exchange for the random-chance possibility of winning valuable players” for his team. 

Ramirez says he still owns and plays the games, and most recently bought FIFA loot boxes in June. Because he is such an avid player, Ramirez says he “will be subjected to Defendant’s predatory Loot Box scheme” in the future.

The EA class action lawsuit compares EA Games to Big Tobacco using its “Joe Camel” campaign in order to create addictive behaviors and thereby make money. 

The loot boxes purchased by Ramirez are known as Ultimate Team Packs, the complaint says.

The purchase of such packs is essentially gambling, the class action lawsuit maintains. They are purchased using in-game currency — which is purchased with real money — and “are simply wagers on completely randomized chances within the game to win valuable professional players and other items for the EA gamer’s virtual sports team.”

“The EA Ultimate Team Packs have all the hallmarks of a Las Vegas-style slot machine, including the psychological aspects to encourage and create addiction,” the class action lawsuit alleges.

Ramirez’ class action lawsuit says the Team Packs fit the definition of “slot machines or devices” under California law “when played on a console, computer, mobile phone, tablet or other similar device.”

The complaint states other countries have determined the loot boxes reinforce addictive behaviors. 

According to the EA games class action lawsuit, the Belgium government has determined loot boxes violate the country’s gambling laws, and the British Parliament’s Digital, Culture, Media and Sport Committee has determined the loot boxes constitute gambling and recommended their sale to children be banned.

The complaint cites one analysis that concluded loot boxes account for about 30% of EA Games’ revenue.

In its most recent annual report, the company showed it earned more than $5.5 billion in net revenue; about 27% of that amount came from the sale of Ultimate Team loot boxes, according to the complaint.

Ramirez claims EA Games is “fully aware” it is in violation of gambling laws, but has “conducted the cost-benefit analysis and has chosen to go forward with its current ‘business model’ because violating the gambling laws is so profitable.”

Despite knowing of the research on the predatory nature of loot boxes, EA chooses its profits over protecting “unsuspecting adults and children” and seeks only to limit its liability when it comes to investors and securities litigation.

“EA engages in predatory practices enticing consumers, including children and adults, to engage in gambling and similar addictive conduct in violation of this policy and other laws designed to protect consumers and to prohibit such practices,” the class action lawsuit contends.

Other class action lawsuits have been filed equating mobile games with gambling apps.

One Clash of Clans player says Supercell Oy’s video games are free, but come with addictive in-game purchases. 

And a gaming app player and the parent of a minor player filed a class action lawsuit against Google, saying the company’s in-game purchases simulate the attraction of gambling, essentially turning the games into gambling apps.

With his complaint, Ramirez seeks to certify a Class including everyone who paid for “randomized virtual items from an ‘Ultimate Team Pack’ purchase” in an EA Games video game.

The complaint claims EA Game is in violation of the California Unfair Competition Law and the California Consumers Legal Remedies Act, and accuses the company of becoming unjustly enriched.

Ramirez seeks “restitution and disgorgement of the revenues wrongfully retained as a result of EA’s wrongful conduct;” declaratory and injunctive relief, including stopping EA Games from continuing its alleged unlawful practices; attorneys’ fees; costs; and any other relief the Court deems appropriate.

The plaintiff also demands a jury trial.

Have you bought loot boxes while playing EA Games video games? Let us know in the comments.

The plaintiff is represented by Timothy G. Blood, Thomas J. O’Reardon II and Craig W. Straub of Blood Hurst & O’Reardon LLP and Andrew J. Brown of the Law Offices of Andrew J. Brown.

The EA Games Loot Boxes Class Action Lawsuit is Kevin Ramirez, et al. v. Electronic Arts Inc., Case No. 5:20-cv-05672-SVK, in the U.S. District Court for the Northern District Of California, San Jose Division.

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