Dutch gambling regulators are claiming victory in their fight against online ‘loot boxes’ offered by video game publisher Electronic Arts (EA).

On Thursday, the District Court of The Hague issued a ruling upholding an administrative order issued last year by the Kansspelautoriteit (KSA) gambling regulator that imposed penalties of up to €10m on EA for offering so-called ‘Packs’ in the company’s FIFA football video game.

The KSA’s 2019 order came after it concluded that EA’s loot boxes were an illegal game of chance under Dutch gambling regulations due to the random value of the contents, as well as the fact that the virtual items could be traded or sold for real-world currency on third party sites.

The KSA ordered video game companies to amend their products to ensure compliance with Dutch law, but neither EA nor its Electronic Arts Swiss Sàrl subsidiary complied. As a result, the KSA issued a ‘cease & desist’ order against the two EA firms, making them liable for penalties of up to €5m each.