Claims Google Illegally Enticed Minors To Gamble By Hosting Games With Loot Boxes Dismissed For Good

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Google Play Store Loot Boxes Class Action Lawsuit Overview: 

• Who: A judge permanently dismissed a class action lawsuit filed by a group of parents against Google.
• Why: The judge rejected parents’ claims that Google illegally enticed minors to gamble by hosting games on its Play Store containing loot boxes.
• Where: The class action lawsuit was filed in California federal court. 

A class action lawsuit alleging Google illegally enticed minors to gamble was permanently dismissed by a California federal judge on Monday.

A group of parents claimed in a 2020 class action lawsuit that Google unlawfully enticed minors to gamble by hosting games on its Play Store containing an option for in-game “loot box” purchases.

The judge overseeing the case determined the parents had not alleged Google actually did anything illegal, however, while deciding to put the claims to bed for good.

Google, which sells unregulated virtual currency that can be used for in-game purchases, had argued its involvement ended there and that it was not legally responsible for in-game loot box purchases. The judge agreed, determining the fault lied at the feet of the game developers, not with Google.

“If indeed the sale of loot boxes is illegal, the facts alleged in the [first amended complaint] indicate that such illegality is committed by the developer who sells the loot box for virtual currency, not by Google,” the judge said. “All of Google’s conduct identified by plaintiffs in the FAC [First Amended Complaint] is lawful.”

Parents: Google Made Billions By Enticing Children To Make Loot Box Purchases

Parents argued that Google made billions of dollars by enticing children to make in-game loot box purchases that could yield them rare virtual items, making them akin to gambling.

In dismissing the complaint, the judge noted that, while Google does take 30% of all virtual currency sales, the tokens can be used to buy a number of items and not just loot boxes.

The judge also ruled parents did not show how they or their children were financially harmed by the loot boxes, determining that they got what they had paid for.

“Based on the facts alleged in the FAC, it still appears that Plaintiffs obtained exactly the virtual currency they paid for,” the judge said.

Parents had also claimed Google’s Play Store was akin to a physical casino, arguing individuals would be more likely to gamble using virtual currency than real money.

The judge disagreed, calling the analogy “unpersuasive” and noting that the Play Store contains nearly 3 million third-party apps with only some offering loot boxes.

A similar class action lawsuit filed against Apple claiming it targeted children with free games offering in-game loot box purchases was also dismissed for good earlier this month.

Have you purchased a loot box in a game hosted on Google’s Play Store? Let us know in the comments!

The plaintiffs are represented by Timothy G. Blood and Thomas J. O’Reardon of Blood Hurst & O’Reardon LLP and Andrew J. Brown.

The Google Play Store Loot Boxes Class Action Lawsuit is Coffee, et al. v. Google LLC, Case No. 5:20-cv-03901, in the U.S. District Court for the Northern District of California.

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