Posted on: 29/12/2022, 09:34h.
Last update on: 29/12/2022, 10:46h.
The Spanish government introduced a law this year regulating loot boxes. However, this could not only affect the monetization of video games, but also affect NFT products.
According to current information from the daily El País, the American company Dapper Labs could be affected by the proposed regulations. The group cooperates with Spain’s top football league, LaLiga, but now sees its products as threatened by new legislation.
Dapper Labs has entered into agreements with the Spanish La Liga and the American NFL to create non-fungible tokens or digital collectibles, respectively. The company also creates certified proprietary videos called “Moments”. Market watchers speculate that the company has been able to generate 28 million transactions worth $1.2 billion since the first NBA videos were created as an absolute flagship.
In order to clarify how the Lootbox Law might affect the marketing of various NFT products, Dapper Labs met with representatives from the Spanish Ministry of Consumer Protection. The company’s goal is to explain what its products are made of.
Jorge Urrutia Del Pozo, Vice President of Football at Dapper Labs, said:
Our collectibles are videos that remind you of moments. In Spain we have LaLiga golazos [Traumtore der LaLiga; Anm. d. Red.]. The player’s story appears, the narration, it can be shared on social networks and added to collections.
There is also a market where people can buy and sell their collectibles.
The importance of chance in loot box regulations
As part of the new loot box legislation, one can now wonder how digital products from Dapper Labs will be classified. Should they fall under the new regulations, it would come with severe advertising restrictions.
Among other things, the random aspect is decisive here. The bill published in July includes virtual objects and products that the user receives “randomly”. For example, one Dapper Labs product that includes such randomness is the LaLiga Great Goals Pack.
Here the buyer acquires three “Moments” in which it is not clear in advance which ones will actually be included. There are a total of 36 options that the buyer can view in advance. Ten of the “Moments” that might be included in the purchased pack are common, while the remaining 26 are rare.
According to the company’s reasoning, however, there are significant differences to loot boxes found in video games. For example, Dapper Labs’ NFT products are not accessible to minors, which is immediately in line with the new regulations.
The group stressed its willingness to engage in dialogue with the authorities in order to dispel any doubts. The question of whether this is enough to circumvent the expected strict advertising regulations will become apparent after the Lootbox Act takes effect at the latest.