Firm Client Supercell Gets Claims that “Loot Boxes” Are Illegal Gambling Dismissed

On September 20, 2021, Judge Edward J. Davila of the Northern District of California issued an order in the putative class action that the alleged “loot box” features in Supercell’s Brawl Stars and Clash Royale games did not constitute illegal gambling under California law.  Specifically, the court held that Supercell’s Brawl Boxes and Royal Chests were not illegal slot machines under California Penal Code 330b for three reasons: (1) Supercell’s games are predominately games of skill and therefore carved out from the gambling statute; (2) the items within loot boxes are not “things of value” because they can only be used within the games themselves and cannot be cashed out for real-world money to be spent elsewhere; and (3) the downloadable mobile games are not a “machine, apparatus, or device” as required to constitute a slot machine.  Accordingly, the Court granted Supercell’s motion to dismiss, with leave to amend these deficiencies to the extent plaintiff can do so – which seems unlikely given the Court’s ruling.   

Here’s a link to the Court’s order granting Supercell’s motion to dismiss and dismissing Plaintiff’s putative class action.