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Compliance Updates

Pearson, Simon & Warshaw, LLP and Kaliel PLLC: New Class Action Lawsuit Challenges Fortnite’s Sale of Loot Boxes

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Image Source: theverge.com

 

Pearson, Simon & Warshaw, LLP and Kaliel PLLC filed suit, Altes v. Epic Games, Inc. Case No. 2:19-cv-01488 in the U.S. District Court for the Central District of California on February 28, 2019, alleging that Defendant Epic Games, Inc., the developer of the wildly popular video game Fortnite, uses predatory tactics to lure players into making in-game purchases. Specifically, the Complaint challenges Fortnite’s unfair and deceptive marketing of its “loot boxes,” known as “Llamas,” in Fortnite Save the World.

The Complaint, which is filed as a class action on behalf of California consumers, is brought by Mr. Altes on behalf of his child, a minor. Melissa Weiner, an attorney representing Mr. Altes and his son, commented, “Fortnite’s conduct with respect to loot boxes is especially egregious because so many of its players are kids.”

A “loot box” is a virtual pack of goods which contains a randomized selection of virtual items to be used in a game. Loot boxes can contain everything from purely cosmetic items—known as “skins,” which offer no competitive advantages—to a variety of items such as “power ups” that can dramatically alter a player’s chance of progressing in the game. The loot boxes in Fortnite Save the World, known as Llamas, are of the latter variety, offering players a chance to advance in the game.

Recently, loot boxes have generated significant controversy, with some countries, such as Belgium, Netherlands, and Australia finding that they constitute illegal gambling, based on the fact that consumers pay real currency for potential “loot” that is not guaranteed.

Other countries, including China and Korea, have recently issued regulations requiring games with loot boxes to disclose the odds of winning loot box contents.  In the U.S., the Federal Trade Commission has vowed to investigate the use of loot boxes in video games, but so far, has taken no action.

Mr. Altes’ Complaint, which was filed in federal court in California, alleges that through both misrepresentations and omissions, Epic markets loot box Llamas in Fortnite Save the World as highly likely to contain valuable loot, but in reality, the Llamas do not contain the loot expected by the reasonable consumer, and especially by the reasonable minor. The Complaint alleges that Epic fails to disclose that the odds of receiving valuable loot are next to nothing, and, if players knew the actual odds of receiving the items they desired, they would not purchase the Llamas.

Sophia Gold, another attorney representing Mr. Altes, commented, “In nearly every other game of chance, the odds of winning are disclosed.”

Mr. Altes, who brings his claims under California consumer protection law, seeks both an injunction and a class-wide refund.

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Compliance Updates

Blitzcrown Secures GLI Certification for Three Crash Games in Brazil

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Blitzcrown Secures GLI Certification for Three Crash Games in Brazil

 

Breaking New Ground in Brazil: Blitzcrown’s Crash Games Now GLI Certified

Blitzcrown, MVG’s pioneering games studio, has secured Brazilian Certification as well as GLI-19 Certification from GLI(Gaming Laboratories International) for its industry-changing three Crash titles. This landmark achievement marks a significant milestone in the company’s expansion into Brazil’s thriving online gaming market, positioning Blitzcrown at the forefront of the region’s rapidly evolving iGaming landscape.

The license comes at an important time for Brazil’s gaming sector, following the launch of the new licensing regime that started on January 1, 2025. The regulatory framework, signed into law in December 2023, has transformed the industry’s prospects.

The certification encompasses 3 innovative crash games: Crash, Fast Crash, and Twin Crash. This strategic milestone establishes Blitzcrown as the premier provider of certified Crash games in the Brazilian market, demonstrating the company’s unwavering commitment to regulatory excellence and gaming integrity. With the GLI-19 and Brazil certification process successfully concluded in March, Blitzcrown has solidified its position as an industry pioneer in this dynamic and emerging market.

Crash games are a recent addition to the global iGaming market, featuring the dynamic evolution of real-time multipliers and immediate reward structures. Blitzcrown has stood out by establishing groundbreaking game mechanisms that offer different and exciting gameplay experiences. Standard Crash provides players with a standard multiplier-based gaming experience, and Fast Crash is optimized for users seeking quick, intense multiplier experiences. The Twin Crash is an original format allowing players to place simultaneous bets on two separate multipliers.

Building on this momentum, Blitzcrown has announced plans to expand its certified portfolio with two additional versions of its innovative Plinko games, demonstrating the company’s strategic commitment to market expansion. This forward-looking initiative underscores Blitzcrown’s dedication to continuous innovation and sustainable growth in the regulated gaming markets.

Blitzcrown is MVG’s edge-game studio focused on pushing game ideas beyond their norms through innovative and non-traditional gaming experiences. The studio has been particularly recognized for its groundbreaking approaches in various game categories, including its successful Crash and Plinko series.

George Cho from MVG said: “This GLI certification testifies to Blitzcrown’s unwavering commitment to offering top-quality, fair gaming systems. We are well placed to take advantage of Brazil’s exciting new regulatory environment and the vast growth potential of the online gaming industry.”

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Compliance Updates

VIP Play Obtains Interim West Virginia iGaming and Sports Wagering Management Service Provider Licenses

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VIP Play Inc. announced the approval of its interim License in West Virginia for both Sports Wagering and iGaming managed services. This follows the recently announced market access partnership between VIP Play and Delaware North’s Wheeling Island Casino.

This milestone marks the company’s initial expansion beyond Tennessee, where it currently operates as a mobile Sports Wagering Operator. The interim License in West Virginia also adds iGaming to the company’s book of business, and allows VIP Play to participate in the rapidly expanding i-Gaming industry. VIP Play expects to begin serving West Virginia customers in the coming months.

Bruce Cassidy, VIP Play CEO & Chairman of the Board, said: “The acquisition of our interim Sports Wagering and i-Gaming License in West Virginia marks a significant milestone in our journey to expand, underscoring our commitment to provide innovative experiences to a wider audience. As we grow our presence, our dedication to excellence stands firm, and we’re excited to play a role in enriching West Virginia’s dynamic gaming community.”

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Compliance Updates

QTech Games sharpens its LatAm focus with MINCETUR licence in Peru

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QTech Games sharpens its LatAm focus with MINCETUR licence in Peru

 

New certification for emerging-markets leader arrives ahead of key industry summit in Sao Paulo and awards recognition

QTech Games, the leading game aggregator for emerging markets, has had its platform and games successfully approved for the Peruvian market, demonstrating that its premier B2B platform and all-encompassing content conforms to the latest legislative updates to enhance and regulate Peru’s local gaming environment.

Peru’s Ministry of Foreign Commerce and Tourism (MINCETUR) has now issued an online gaming licence to QTech Games, whereby all its platform products and games are now deemed legally permitted. This includes its new software service for retail, QTech Hybrid, which allows land-based partners to scale their operations online. QTech Hybrid simplifies transactions by enabling deposits, withdrawals and gameplay while allowing access to players both in-shop and on personal devices.

This breakthrough hybrid solution has quickly won clients and awards in the comparably fragmented African market (most recently in March for Best Innovation at AGE Lagos), and now promises to do likewise across LatAm, where QTech Games has already signed several major clients for both its aggregation platform and its QTech Hybrid solution. This activity has seen it again nominated for Best Aggregator at the SiGMA Americas Awards, which kickstart the SiGMA Americas summit (7-10 April) next week, as the igaming world converges on Sao Paulo for a must-attend conference in another of QTech Games’ “focus markets” for 2025.

Philip Doftvik, QTech Games’ CEO, said: “It’s fantastic to have certified our aggregation platform in Peru via MINCETUR – and I’m pleased to say we have more such approvals pending across the continent. We attended fantastic events in Rio and, more recently, SAGSE 2025 in Buenos Aires – and anticipate more of the same at SiGMA Americas in Sao Paulo next week, where we’re also thrilled to have been shortlisted for Best Aggregator at their LatAm Awards. Given the venue, Brazil will be dominating the discussion for many at SiGMA Sao Paulo. However, we’ll also be looking beyond Brazilian borders this year, and are already active in Mexico, Chile, Colombia and Paraguay. We know our QTech Hybrid solution will work very well wherever we put a pin on the LatAm map.”

QTech Games delegates will be present at five more LatAm summits in 2025, with SiGMA Americas (7 April) the next port of call – followed by GAT Expo Cartagena (28 April), SBC Americas (13 May), Peru Gaming Show (18 June) and GAT Expo Mexico (28 Aug).

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