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After unveiling the first details of his plan to attack the vaults and payment mechanisms to win in video games, US Republican Senator Josh Hawley officially released today the full text of his bill. Not only that, but Hawley has revealed two co-sponsors, and they are both of the rival Democratic Party.
"It's pretty simple: video game companies should not put kids' casinos in their games, so be proud of this bipartisan effort", Hawley said on Twitter.
The two co-sponsors of the bill, entitled The Protection of Children from Abusive Gambling Act, are Democratic Senators Richard Blumenthal (Connecticut) and Ed Markey (Massachusetts).
The bill calls on Congress to regulate some fee-paying microtransactions to win video games, while seeking to ban gambling crates for games designed to appeal to under-18s. Specifically, the bill says that it would be illegal for a publisher to publish a "minor-dominated" game featuring microtransactions or pay-as-you-go boxes, while seeking to bring out previously released games. receiving updates that add such mechanisms.
The key to this bill lies in the definition of the boxes of gain and loot. The bill states that a payment mechanism to win is a mechanism that "facilitates the progression of a user through content normally available in the game without the purchase of such a transaction. "as well as a mechanism" that helps a user to accomplish a feat in the game. This can otherwise be accomplished without the purchase of such a transaction.
It is also defined as something that "helps a user to receive a reward associated with the game that is otherwise available in association with the game without the purchase of such a transaction". Finally, the bill states that pay to win also means a purchase that "allows a user to continue to access game content that was previously available to them, but was rendered inaccessible after an account has expired. countdown or countdown. " number of attempts to play. "
Exclusions include difficulty modes, cosmetic items that do not affect the game, and additional content such as DLC packs and extensions.
With regard to booty chests, the bill defines the booty as a "randomized or partially randomized" item that unlocks a feature of the product or adds or enhances the entertainment value of the product without revealing the actual content prior to the sale. 39; purchase. booty chest.
The bill defines a "juvenile-oriented" game as a game intended, among others, for persons under the age of 18, judging by content, visual content, musical or audio content. No example of a "minor-oriented" game has been provided. The wording of the bill also does not say whether Hawley will work with the US rating agency, the ESRB, on this bill. This group is owned and operated by the Entertainment Software Association, which opposes this bill, which could be one of the reasons.
Hawley's bill says that he can seek this prohibition under the law on treacherous or deceptive acts of the Federal Trade Commission.
In addition to banning certain loot boxes and payment mechanisms to win, the bill calls for a study to be done on the effect of payout boxes for win and loot that would be ordered no later than two years after the end of the term. act is adopted.
Hawley and his co-sponsors ask the study to analyze the psychological effects of pay-to-win microtransactions and loot boxes on users, as well as to study game development practices related to microtransactions and boxes to booty pay-to-win, among others. It is unclear why Hawley is asking for these studies after the theoretical enactment of his bill and not before.
The co-sponsors of the Law on Protection of Children Against Gaming published favorable statements to the bill at the address The Verge. Markey said: "Intrinsically manipulative game features that take advantage of kids and turn play time into payment times should be out of reach." Blumenthal commented: "The Congress must send a clear warning to application developers and technology companies: kids are not cash cows to exploit for profit."
For its part, ESA has declared itself opposed to Hawley's bill. The professional group, which represents the interests of the video game industry in Washington DC and also manages E3 every year, aims to protect and support its members. A lawmaker in Hawaii who also targeted the surprise boxes told GameSpot that ESA had sent lobbyists to Hawaii to try to kill him. In response to the Hawley Bill, ESA said in a statement to PC Gamer that countries like Ireland, Germany, Sweden, Denmark, Australia, the United States, New Zealand and the United Kingdom have also determined that "loot boxes are not gambling".
"We look forward to sharing with the Senator the tools and information already provided by the industry that allow parents to keep control of spending in the game. Parents already have the opportunity to limit or prohibit shopping in the game with a simple parental control to use, "said the ESA.
A rising battle
Cowen & Company has released a note to investors regarding Hawley's proposal. The vast majority of proposed bills are never passed by the US Congress, and Cowen & Company has stated that Hawley's bill was no exception to the rule, in that it had to deal with to a difficult battle.
According to analyst Doug Creutz, Hawley's bill represents a "much more serious and existential threat" to games, especially for mobile games, as it also focuses on payment mechanisms to win, in addition to chests.
Regarding the reasons why the Hawley bill might present difficulties, Cowen & Company acknowledged that it was an exception among Republicans, since most Republicans were pro-trade and regularly opposed the regulation of technology companies. Not only that, but the Congress runs "barely" in 2019, with lawmakers focusing more on "legislation to adopt" that keeps the government open.
"The surprise boxes have very little spirit in Congress," said Cowen & Company.
The firm also said that Hawley's bill could be hindered because the Supreme Court had already ruled in 2011 that video games were protected as freedom of speech under the First Amendment. As such, some lawmakers may not want to participate in a surprise box and microtransactions committee, Cowen & Company said. A co-author of the new bill, Richard Blumenthal, supported the bill to ban the sale of violent video games to minors, which was eventually canceled.
The next step for Hawley's bill would be to go to a congressional hearing. No hearing is currently scheduled, which could bode well for the bill. However, Cowen & Company noted that Markey and Blumenthal, Cosponsors, were giving the bill more chances to get an audition. Hawley, a first-year Senator and the 39-year-old US Senator, sits on the Judiciary Committee and could ask Lindsey Graham to be heard, Cowen & Company said.
Another problem at stake is that the FTC has already announced that it will hold a hearing on August 7 to search the treasure chests. Democratic legislator Maggie Hassan (New Hampshire) called for the hearing, although she did not co-sponsor Hawley's bill.
Overall, Cowen & Company believes that the video game industry should take Hawley's bill seriously, although it also feels it is not a short-term concern. You can read the full text of the Law on the Protection of Children against Abusive Gambling here.
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