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‘Microtransactions’ Legal Issues In Online Video Games

By Sid Kamaraju and Simon Pulman and Katherine Reilly and Aaron Wiltse
June 30, 2025

Online video games are a big business. A significant component of the money made by those in the online gaming businesses derives from “microtransactions”: players spending real-world money on in-game features and items, such as virtual currency, power-ups to give players a strategic advantage, or cosmetic updates and “skins” for game characters.
In fact, microtransactions have become ubiquitous in many sectors of gaming, especially in mobile and “free to play” games, where users can access the game and play for free but may be encouraged to spend real money to accelerate their in-game progress.

But microtransactions have been controversial since their introduction. Gamers often view them as exploitative and predatory, while online safety advocates allege that they utilize unfair trade practices and, in some instances, may promote gambling. For example, loot boxes and so-called “gacha” games that may encourage players to spend real money for the random chance to win high-value in-game items.

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