[Consultation] Review of the gambling nature of probabilistic items

Probability-based items refer to game items that can be sold for a fee within a game or exchanged using game currency, and have a certain degree of expected value that allows them to be exchanged for other game items. They are currently well known as random boxes or random capsules. Recently, probability-based items have rapidly emerged as a major business model for game companies and are functioning as a main source of income for many companies. While probability-based items are contributing to the growth of game companies, criticisms have continued that they are fostering gambling tendencies among adolescents and other users.

Therefore, Agency A consulted Law firm Veat to inquire whether probability-based items could be recognized as having a gambling nature under current law. Veat, referring to the Criminal Code and other laws related to the concept of gambling, such as the Act on Promotion of Game Industry and Regulation and Punishment of Gambling Acts, and relevant precedents, reviewed the scope of the concept of gambling as defined in current gambling regulation laws and presented an opinion on whether Agency A could regulate probability-based items by applying current laws.

Thank you.

Law firm Veat