What's happening
This bill requires video game publishers to disclose odds for randomized in-game purchases, display warning labels, and restrict such games' sales to those under 18.
Why it matters
Mandates transparency about randomized rewards. By requiring publishers to disclose the odds of receiving specific items, the bill aims to give consumers—especially parents and players—better information to make purchasing decisions and to recognize potentially misleading or predatory practices.
Introduces strong warning labels. Prominent, bright red warnings about gambling-like features must be displayed on both physical and digital games, potentially influencing consumer awareness and perceptions of in-game purchases.
Enables government oversight and audits. The Division of Consumer Protection can audit video game code to verify the accuracy of stated odds, which introduces an unprecedented level of regulatory scrutiny and could impact how games are developed and updated.
Restricts access for minors. By making it illegal to sell games with randomized purchase mechanics (“loot boxes”) to anyone under 18, the bill treats these features similarly to gambling, which could significantly affect game sales, design choices, and how minors interact with video games.
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Who cares
Headline styles
Warn Gamers About Loot Boxes
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to consumer protection
- Referred to consumer protection
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1416
2019-2020 Regular Sessions
IN SENATE
January 14, 2019
Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection
AN ACT to amend the general business law, in relation to randomized in-game purchases in video games
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The general business law is amended by adding a new section 396-kk-1 to read as follows:
§ 396-kk-1. Video games; randomized in-game purchase items. 1. Definitions. For purposes of this section:
(a) "Video game" means an interactive electronic amusement device, disk, cartridge or other object that utilizes a computer, microprocessor or similar electronic circuitry and its own monitor, a television set or a computer monitor, and such device or object is designed to allow a person to manipulate the images presented by such device or object.
(b) "Video game publisher" means an entity that publishes video games that have either been created internally or through a separate entity.
(c) "Retailer" means any person or entity who offers video games for sale, including resale by the purchaser, through any means, including, but not limited to, sales outlets, catalogs, or the internet.
2. Disclosure. (a) Video game publishers that distribute video games within the state that contain a system of purchasing randomized reward or rewards or a consumable virtual item that can be redeemed and directly or indirectly converted to a randomized reward or rewards shall prominently disclose and publish to the consumer the probability rates of receiving each type of randomized reward or rewards at the time of purchase and at the time any mechanism to receive a randomized reward or rewards is activated so as to meaningfully inform the consumer's decision prior to the purchase or activation of any mechanism to receive a randomized reward or rewards.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01335-01-9
S. 1416 2
(b) Video games distributed within the state that contain a system of purchasing randomized reward or rewards or a consumable virtual item that can be redeemed and directly or indirectly converted to a randomized reward or rewards shall:
(1) bear a prominent, easily legible, bright red label on its packaging which reads: "Warning: contains in-game purchases and gambling-like mechanisms which may be harmful or addictive"; or
(2) if purchased digitally and downloaded through the internet or an online application, prominently disclose to the consumer at the time of consumer purchase a bright red label that is easily legible and which reads: "Warning: contains in-game purchases and gambling-like mechanisms which may be harmful or addictive", so as to meaningfully inform the consumer's decision prior to purchase.
(c) No video game publisher shall at any time modify a video game distributed within the state to contain or otherwise permit the inclusion of additional content for which the game was not appropriately labeled at the time of original sale.
3. Audit of video games. The division of consumer protection is authorized to audit the code of video games sold within the state and subject to this section to ensure that the probability rates for receiving each type of randomized reward or rewards are calculated correctly and working properly. Such division may contract with a third party to provide additional assistance as needed. Such division shall not publicly disclose proprietary information beyond that which is necessary to fulfill the intent of this section.
4. Sale restrictions. It shall be unlawful for any retailer to sell to any person under eighteen years of age a video game that contains a system of further purchasing:
(a) A randomized reward or rewards; or
(b) A virtual item which can be redeemed to directly or indirectly receive a randomized reward or rewards.
§ 2. This act shall take effect on the one hundred eightieth day after it shall have become a law. The director of the division of consumer protection is authorized to promulgate any and all rules and regulations and take any other measures necessary to implement this act on its effective date on or before such date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the general business law, in relation to randomized in-game purchases in video games
Purpose
This bill will ensure the disclosure of the probability rates of loot box type rewards to the consumer, create warning labels to make consum- ers aware of the potentially harmful and addictive in-game purchases and gambling-like mechanisms, allow for the auditing of video games by the division of consumer protection and restrict sale to any person under the age of eighteen.
Summary of provisions
Section 1 of the bill amends the general business law by adding a new section, 396-kk-1, video games; randomized in-game purchase items. Part one of the section provides definitions for the terms, "video game", "video game publisher", and "retailer".
Part two of the section establishes the requirement of disclosure to the consumer with the publishing of probability rates of receiving random- ized rewards and implementation of red warning labels in and on all video games which contain in-game purchases of randomized rewards or a consumable virtual item that can be redeemed and directly or indirectly converted to a randomized reward, on behalf of video game publishers that distribute games within the state and prohibits the modification of a video games that were not appropriately labeled at the time of sale.
Part three of the section authorizes the auditing of video games by the division of consumer protection to ensure that probability rates for receiving each type of randomized reward or rewards are calculated correctly and working properly.
Part four of the section prohibits the sale of games containing random- ized rewards or virtual items that can be converted into randomized rewards, to any person under eighteen years of age.
Section 2 of the bill sets the effective date.
Justification
"Loot boxes", otherwise known as in-game purchases have been compared to gambling and should be regulated as such. In Hawaii as well as countries such as the UK, there has been a rise in controversy regarding the simi- larity to gambling. Following in Hawaii's footsteps, Washington and Illinois have also begun to introduce legislation regarding this prob- lem. With many different names these in-game gambling like mechanisms should follow the same guidelines as the state of New York in regards to the legal age of gambling, eighteen.
When purchasing "loot boxes", there is no guarantee that you will secure any of the possible items inside of the box. This bill would make it necessary for the publisher to give consumers accurate probability rates of winning the randomized reward. In games such as Star Wars, League of Legends, Call of Duty, Need for Speed, etc., consumers are spending large sums of money. This shows how similar these games are to online casinos. Consumers purchase the loot box without promise that the item inside will be worth the money that they paid. Comparing the in-game purchases to casinos, you are essentially putting money in for something without being guaranteed to receive something of equal value or more in return. Whereas other in-game purchases may be guaranteed, loot box type purchases are not.
This bill will warn consumers about the possibly harmful and addictive gambling-like mechanisms and in-game purchases that many games offer and ensure minors aren't able to purchase without a parent or adult present.
Fiscal impact on the state
None
Legislative history
S8505 - referred to Consumer Protection
Effective date
This will become active 180 days after it has become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.