Israeli Court Allows Lawsuit Against Electronic Arts Over "Loot Boxes"

A Tel Aviv District Court has rejected a bid by Electronic Arts (EA) to dismiss a class-action lawsuit filed against the gaming giant in Israel. The lawsuit alleges that EA's "loot boxes," virtual items purchased within games like FIFA 23, constitute illegal gambling disguised as a sports game, particularly targeting a young audience.

The plaintiff, represented by lawyers Lior Lahav and Hadar Stamfo, claims to have purchased virtual tokens in FIFA 23, which were then used to acquire loot boxes or lottery packs. These boxes randomly yield digital assets for in-game use. The plaintiff argues this system relies solely on luck and operates as an illegal gambling platform. The lawsuit also asserts that EA failed to disclose the gambling element and the addictive potential of these purchases.

Supporting the claim, the plaintiff submitted an expert opinion from Dr. Liraz Margalit, who specializes in the addictive potential of loot boxes. EA Swiss Sàrl, the company's non-US arm, contested the lawsuit, arguing that the presence of luck in a game does not automatically make it illegal gambling. They also questioned the Israeli court's jurisdiction and claimed the plaintiff and potential class members were violating the law by participating in such games.

Judge Tamar S. Porat ruled against EA, stating that the evidence presented by the plaintiff suggests a potential legal claim. The court found that Israel is the appropriate forum for the case and that service of process on the company is valid. EA was ordered to pay the plaintiff 10,000 shekels in legal costs.