Second Life Gachas Likely to Face Government Regulation of Online Gaming Lootboxes

PC Gamer just published a good story on the SL Gacha duping controversy featured in New World Notes last month. Reporter Steven Messner quotes me a few times, including my comparison to the CopyBot controversy of 2006, and does a solid job explaining the complex topic to non-SLers. 

Speaking of which, what many Second Life users might not know is gachas have strong similarities to lootboxes in other online games -- most especially Star Wars Battlefront, which have faced recent controversies of their own, in great part because they have a gambling element. (I.E. pay real money for the chance to win valuable virtual goods.) The controversy is so great, in fact, game lootboxes may soon be regulated in Belgium, and a US Congressman is calling to regulate them in America, too.

Which is a long way saying this: If these and other governments do impose regulations on gaming lootboxes, expect these regulations to impact SL gachas too. In fact, the sale-ability of Linden Dollars for US dollars means that SL gachas are even more like gambling, than other games' lootboxes. As Messner writes:

On the surface there's little difference between gachas and the controversial loot boxes that are appearing in many games like Star Wars Battlefront 2, but there's several key distinctions. For one, these items have tangible value. Each play is always rewarded with an item, and any you win can be resold on Second Life's Marketplace for Lindens and then converted into US dollars. Secondly, the proceeds of these items goes to their respective creators, not Linden Lab (though it does collect a small transaction fee for items sold on the Marketplace). And for those who hate the gambling aspect of gacha games and loot boxes, many creators also offer a buyout price to purchase the set in full.

I'm not a lawyer (but I play one on the Internet), but if any major market regulated lootboxes, I'd suspect Linden Lab would just outright ban gachas from the SL Marketplace before government agents even came calling. Seeing as how huge a part of the SL economy gachas are, the impact would be pretty massive. Which is to say:

If you're in the SL gacha business, keep a close eye on what your country's legislators are doing with lootboxes, and make plans to pivot.  

Comments

[Estelle Pienaar]

I have doubts that gatchas will really end up in the lootbox category. But even if it would: It is much easier for LL to react to new policies on lootboxes aka gatcha. There is already a working policy on skill games in place and the gatche machines just have to be changed so that you can win the rares with skill and not just based on pure luck. Then put a gatcha event on a skill games region: problem solved.

[Estelle Pienaar]

Also: I haven't read the article, but even the headline gets it completely wrong. No one is stealing gatcha machienes and boxes. Some thieves are hacking non-copyable items and sell the illegal copies. What is illagelly copied and sold has 100% nothing to do with lootboxes. As soon as an item is out of the "box", it's a normal SL item. Have you ever heard of anyone offering an illegal lootbox to another SL player, Hamlet?

[lanny]

I didn't read the article nor the comments but I have a flawless opinion nonetheless.

[seph]

Sensationalism aside, the proposed US regulation is to protect minors and barely applies to Second Life at all.

Let's assume there's many 16-17 year olds wandering around G-rated gacha events and stores with gacha items in Second Life, I'd sooner expect Linden Lab to just end support for 16-17 year olds on the grid before investing money in ways to protect them from gacha.

[CQV]

They will end up in the loot box category and it is gambling and the worst part is people can dupe it all for free and the greed of the creators has gone too far. The best evidence was getting a hold of the scripts in the machines legally from LL and discovering some disturbing things.

[Kavon Chrome]

Gachas are like the toy machines located at most restaurants. What's the problem here? You don't lose, you win every time. In gambling, you have the chance to LOSE, which IS the problem. SMH...

[Kavon Chrome]

Oh if you are blaming rippers, then that is like saying everything on SL should not be sold too. Make some sense here people!

[Wagner J Au]

"In gambling, you have the chance to LOSE, which IS the problem."

Imagine a slot machine which cost $1 door per pull, with a small chance to win a big payout, and a guaranteed consolation prize of 25 cents every time. Would that not be gambling? Because it sure seems like it still would. Also, I bet casinos would get more people addicted with this model.