Brazil has opened an inquiry into loot boxes, in a move that may lead to a ban and hefty fines on companies offering the monetization scheme. This follows a recommendation from the the country’s National Association of Child and Adolescent Defense Centers (ANCED), reports GamesIndustry.biz.
ANCED argued that loot boxes are a form of gambling, which is illegal in Brazil. If the ban is approved, Brazil could fine violators up to BRL $4 million (roughly $706,000) per day. That would likely be after some length of a grace period allowing companies to disable the mechanism.
The inquiry is targeting companies like Activision, EA, Konami, Nintendo, Riot Games, Ubisoft, Tencent, and Valve. Some companies like EA have already made plans to block the randomized mechanic, like FIFA Ultimate Team packs, in countries where it’s disallowed.