Brazilian Court Rules Riot Games Must Pay $2.8 Million for Loot Box Controversy

A Brazilian court has mandated that Riot Games pay R$15 million BRL (approximately $2.8 million USD) in collective moral damages due to the loot box mechanics in League of Legends. This ruling, issued on June 9 by Judge Rejane Zenir Jungbluth Teixeira Suxberger from the 1st Court for Children and Youth in Brazil’s Federal District, follows a civil public action initiated by ANCED, the National Association of Centers for the Defense of Children and Adolescents, which has raised concerns about loot boxes in games accessible to minors.

This ruling is not yet final. The court’s decision indicates that the appeal period has been reopened, and Riot, ANCED, and the Public Prosecutor’s Office will be informed of the outcome.

The awarded amount is significantly lower than what ANCED initially sought, which was R$1.5 billion ($280 million) in damages. The court deemed that figure excessive and settled on R$15 million ($2.8 million), while also rejecting a broader request for individual damages for affected players. This June 9 ruling followed an earlier phase where parts of ANCED’s claims were dismissed, prompting the judge to revisit the case after an appeal from the Public Prosecutor’s Office.

Riot’s situation is part of a larger legal movement in Brazil regarding loot boxes. Reports indicate that other companies, including major players in the gaming industry, have also been ordered to pay damages in related cases, totaling R$298 million ($56 million). For instance, Valve was directed to pay R$10 million ($1.9 million) in a case linked to Counter-Strike. There is also a related case against Trueline Valve Corporation, although details on that judgment remain unverified.

In the ruling against Riot, the court determined that the company’s randomized reward systems breached Brazilian laws aimed at protecting children and consumers. The court has mandated that once the decision is finalized, Riot must implement various safeguards, including clear warnings, item probability disclosures, age-verification systems, and a refund mechanism for minors or their guardians. Failure to comply could result in a daily fine of R$100,000 ($19,450).

This decision aligns with Brazil’s efforts to enhance regulations surrounding digital services for minors. The recently enacted Law No. 15,211/2025, known as ECA Digital, imposes new child-protection requirements for digital products and bans loot boxes in games aimed at children or likely to be accessed by them. However, the court’s decision also referenced existing consumer and child-protection laws.

For the esports scene, this case is significant as it touches on monetization strategies that are integral to competitive gaming. Titles like League of Legends and Counter-Strike are not just consumer games; they are pivotal in the global esports landscape, supporting professional leagues, sponsorships, and in-game economies.

While the financial penalty against Riot is relatively small compared to the scale of its parent company, Tencent, and the overall revenue from League of Legends, the broader implications are operational and regulatory. If more courts or regulators classify randomized cosmetic rewards as gambling or harmful to minors, publishers may face a patchwork of compliance requirements, with varying rules for loot box disclosures, age restrictions, and refund policies across different regions.

Earlier this year, Riot made adjustments specific to Brazil, implementing age-verification measures and temporarily raising the age rating for several games, including League of Legends, to 18+. Minors were restricted from accessing these titles while Riot worked to align them with their original ratings. VALORANT had a different approach, allowing players aged 12 to 17 to continue playing with parental consent.

Globally, loot boxes are under increasing regulatory scrutiny, with outcomes differing by region. Belgium’s Gaming Commission ruled in 2018 that paid loot boxes in games like Counter-Strike: Global Offensive and Overwatch fell under the definition of games of chance, leading publishers to alter or disable these mechanics. Conversely, in the Netherlands, a €10 million EUR ($11.5 million) penalty against Electronic Arts was overturned in 2022, with the court deciding that FIFA Ultimate Team packs did not constitute a standalone game of chance. Austria has seen litigation regarding FIFA packs, and Valve has faced ongoing scrutiny over Counter-Strike containers, even introducing an “X-Ray Scanner” system for German players to reveal container contents before opening. In the U.S., the Federal Trade Commission reached a $20 million settlement in 2025 with the developer of Genshin Impact over loot box-related allegations, while Valve is currently involved in litigation concerning loot box mechanics in Counter-Strike 2, Dota 2, and Team Fortress 2.