Israeli Court to Hear Lawsuit Against EA Over Alleged Gambling in FIFA Games
Translated & summarized from Calcalist by baba
An Israeli court will hear a class-action lawsuit against Electronic Arts, rejecting the gaming giant's attempt to dismiss the case. The suit alleges that EA's "loot boxes" in games like FIFA 23 constitute illegal gambling. The court found a possible legal cause of action and determined Israel is the proper forum, ordering EA to pay legal costs.
The story in 6 lines · by baba
- An Israeli court will hear a class-action lawsuit against Electronic Arts over alleged gambling in its games.
- The lawsuit claims EA's "loot boxes" in FIFA 23 and other games constitute illegal gambling.
- EA argued the Israeli court lacked jurisdiction and that luck-based elements don't make games illegal.
- Judge Tamar S. Porat ruled that the plaintiff presented a possible legal cause of action.
- The court found Israel to be the appropriate forum for the case.
- EA was ordered to pay the plaintiff 10,000 shekels in legal costs.
A Tel Aviv district court has rejected a bid by EA Swiss Sàrl, a subsidiary of gaming giant Electronic Arts, to dismiss a class-action lawsuit filed against it in Israel. The lawsuit alleges that the company sells "loot boxes" in its games, which are claimed to constitute illegal gambling.
The plaintiff claims to have played the company's virtual games in Israel and purchased virtual tokens in FIFA 23. He alleges that EA encourages the purchase of these tokens, which are used to buy "loot boxes" or "raffle packs" that randomly yield digital in-game assets. The plaintiff argues this constitutes gambling based solely on luck and that EA operates an illegal gambling platform disguised as a sports game for a young audience. The suit further contends that EA sells "loot boxes" for real money, with their contents and odds of winning unknown beforehand, and that the company concealed the gambling element and addictive potential of its games.
An expert opinion from Dr. Liraz Margalit, who studies the addictive potential of "loot boxes," was attached to the request. EA countered by denying the allegations and challenging the Israeli court's jurisdiction, asserting a lack of cause for action. The company argued that if its games are indeed illegal, then the plaintiff and his proposed class members are also breaking the law, and the plaintiff should not be allowed to force others into criminality.
Regarding the core claims, EA argued that the mere presence of a luck element does not make a game illegal gambling, stating that a game can include luck while still being primarily based on skill or understanding. However, Judge Tamar S. Porat dismissed EA's request, ruling that the plaintiff's evidence suggests a possible legal cause of action against the company. The judge also accepted the plaintiff's arguments regarding jurisdiction and affirmed Israel as the appropriate forum for the case, ordering EA to pay the plaintiff 10,000 shekels in legal costs.
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