As of May 1st, 2017 a new law entered into force in China which obliges publishers/providers of loot boxes in video games to publicly disclose the probability of drawing specific items. The law provides inter alia: 2.6 [...] Online game publishers shall promptly publicly announce information about the name, property, content, quantity, and draw/forge probability of all virtual items and services that can be drawn/forged on the official website or a dedicated draw probability webpage of the game. The information on the draw probability shall be true and effective. 2.7 Online game publishers shall publicly announce the random draw results by customers on notable places of an official website or in-game, and keep records available for government inquiry. The records must be kept for more than 90 days. When publishing the random draw results, measures should taken to protect user privacy. Clients in the gaming sector should therefore check which of your games (if any) include the option to draw random items from loot boxes and if there is any need to act due to the new law. Please let us know if you require further information in this regard. We are happy to reach out to our colleagues from one of our Chinese offices who regularly advise on regulatory issues related to video games.
