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Republican Senator Josh Hawley Pushes For Anti-Loot Box Bill

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4 years ago

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  • Senator Josh Hawley has drafted a bill that would ban the sale of loot boxes and pay-to-win microtransactions in games that target or are played by children.
  • Two of his Democratic colleagues have signed on in support of the legislation, arguing that the features prey on minors and essentially serve as casinos for kids.
  • Meanwhile, industry leaders argue that the features do not constitute gambling and say parents already have the ability to prohibit in-game purchases with parental controls.

The BIll

Senator Josh Hawley (R-MO) formally introduced a bill on Thursday that would ban the sale of loot boxes to children.

Hawley’s bill is called “The Protecting Children from Abusive Games Act,” and if approved it will restrict video game companies from including loot boxes or pay-to-win microtransaction in games that target children or are “played by minors.”

The bill calls for financial penalties should a gaming company violate these rules. “Only the addiction economy could produce a business model that relies on placing a casino in the hands of every child in America with the goal of getting them desperately hooked,” Hawley said of the features.

He has teamed up with two Democratic lawmakers, Senator Ed Markey (D-MA) and Senator Richard Blumenthal (D-CT) on this legislation, saying “I’m proud to introduce this landmark, bipartisan legislation to end these exploitative practices.”

“Today’s digital entertainment ecosystem is an online gauntlet for children,” Senator Markey said. ”Inherently manipulative game features that take advantage of kids and turn play time into pay time should be out of bounds.”

“I’m proud to sponsor this bipartisan legislation to protect kids from predatory gaming apps and hold bad actors accountable for their reprehensible practices,” Senator Blumenthal said.

“Congress must send a clear warning to app developers and tech companies: Children are not cash cows to exploit for profit.”

Loot Boxes and Microtransactions

The bill will specifically focus on loot boxes and pay-to-win mechanics. Loot boxes are often incorporated in both free and paid games. They offer players randomized rewards for spending money. Meanwhile, play-to-win microtransactions typically take two forms.

In some instances, game designers create games with difficult paths to entice players into spending money on upgrades to progress further in the game. Many times, these games are free to download, which initially draws players in and allows them to become invested in the game before it becomes more challenging.

In other cases, game engineers create multiplayer games that offer players the chance to purchase upgrades or competitive advantages over other players.

Are Industry Leaders Concerned?

Calls for regulation of loot boxes and pay-to-win mechanics have increased over the last several years. Especially as loot boxes have become increasingly popular features in mobile games and larger games produced by companies like Blizzard and Electronic Arts.

Last fall, the Federal Trade Commission said it would investigate loot boxes following a letter from Senator Maggie Hassan. That letter was written after a string of games in 2017 featured heavy usage of microtransactions. This was seen in games like Middle-earth: Shadow of War and Star Wars Battlefront II.

While some companies have pulled back on the practice, popular games like Overwatch, FIFA, and Apex Legends continue to make huge profits off of randomized microtransactions. However, some countries have taken a stand against these features. Earlier this week, Nintendo was forced removed two games in Belgium for violating the country’s loot box regulations that treat loot boxes as an illegal form of gambling.

In a recent interview with Kotaku, Hawley admitted he is not a gamer, but said that the idea for the bill came from “being a parent of two little boys,” and from “talking to a lot of parents” who were suddenly seeing several charges on their cards after purchasing games for their kids.

Kotaku’s Jason Schreier asked if Hawley had spoken to industry leaders about the bill. Here’s how that conversation went:

  • Schreier: Have you been in conversations with the ESA, the video games lobbyist group, or any other video game companies about how this might impact them?
  • Hawley: Yes, yes we have.
  • Schreier: Can you describe the nature of those conversations?
  • Senior policy advisor Jacob Reses: This is Jacob here. I think it’s fair to say the industry has concerns about this… We’ve been trying to be very transparent with them, but there may be some difference of opinion.
  • Hawley: Jacob’s being very diplomatic.
  • Schreier: Yes, any elaboration you can make here? I ask because I pay a lot of attention to these financial calls that these companies have, and EA for example is very reliant on the loot box income that comes in from FIFA games. A lot of these companies are very reliant on this stuff.“
  • Hawley: And FIFA would indeed be covered by this legislation, to be clear. They’ve certainly expressed their, shall we say, concern over this legislation. But I think that’s probably a good indication that we’re getting somewhere.

The bill will likely face pushback from industry leaders who have stood by their use of microtransactions. Earlier this month after Hawley announced his plans for the bill, The Entertainment Software Association, the video game industry lobbyist group, sent over a statement to Kotaku saying:

“Numerous countries, including Ireland, Germany, Sweden, Denmark, Australia, New Zealand, and the United Kingdom, determined that loot boxes do not constitute gambling. We look forward to sharing with the senator the tools and information the industry already provides that keeps the control of in-game spending in parents’ hands. Parents already have the ability to limit or prohibit in-game purchases with easy to use parental controls.”

See what others are saying: (Kotaku) ( (The Verge) (The Gamer)

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U.S.

White Supremacist Propaganda Reached Record High in 2022, ADL Finds

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2 weeks ago

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March 9, 2023

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 “We cannot sit idly by as these extremists pollute our communities with their hateful trash,” ADL CEO Jonathan Greenblatt said.

White supremacist propaganda in the U.S. reached record levels in 2022, according to a report published Wednesday by the Anti-Defamation League’s Center of Extremism.

The ADL found over 6,700 cases of white supremacist propaganda in 2022, which marks a 38% jump from the nearly 4,900 cases the group found in 2021. It also represents the highest number of incidents ever recorded by the ADL. 

The propaganda tallied by the anti-hate organization includes the distribution of racist, antisemitic, and homophobic flyers, banners, graffiti, and more. This propaganda has spread substantially since 2018, when the ADL found just over 1,200 incidents. 

“There’s no question that white supremacists and antisemites are trying to terrorize and harass Americans with their propaganda,” ADL CEO Jonathan Greenblatt said in a statement. “We cannot sit idly by as these extremists pollute our communities with their hateful trash.” 

The report found that there were at least 50 white supremacist groups behind the spread of propaganda in 2022, but 93% of it came from just three groups. One of those groups was also responsible for 43% of the white supremacist events that took place last year. 

White supremacist events saw a startling uptick of their own, with the ADL documenting at least 167, a 55% jump from 2021. 

Propaganda was found in every U.S. state except for Hawaii, and events were documented in 33 states, most heavily in Massachusetts, California, Ohio, and Florida.

“The sheer volume of white supremacist propaganda distributions we are documenting around the country is alarming and dangerous,” Oren Segal, Vice President of the ADL’s Center on Extremism said in a statement. “Hardly a day goes by without communities being targeted by these coordinated, hateful actions, which are designed to sow anxiety and create fear.”

“We need a whole-of-society approach to combat this activity, including elected officials, community leaders, and people of good faith coming together and condemning this activity forcefully,” Segal continued. 

See what others are saying: (Axios) (The Hill) (The New York Times)

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Business

Adidas Financial Woes Continue, Company on Track for First Annual Loss in Decades

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2 weeks ago

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March 8, 2023

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Adidas has labeled 2023 a “transition year” for the company. 

Yeezy Surplus 

Adidas’ split with musician Kanye West has left the company with financial problems due to surplus Yeezy products, putting the sportswear giant in the position to potentially suffer its first annual loss in over 30 years. 

Adidas dropped West last year after he made a series of antisemitic remarks on social media and other broadcasts. His Yeezy line was a staple for Adidas, and the surplus product is due, in part, to the brand’s own decision to continue production during the split.

According to CEO Bjorn Gulden, Adidas continued production of only the items already in the pipeline to prevent thousands of people from losing their jobs. However, that has led to the unfortunate overabundance of Yeezy sneakers and clothes. 

On Wednesday, Gulden said that selling the shoes and donating the proceeds makes more sense than giving them away due to the Yeezy resale market — which has reportedly shot up 30% since October.

“If we sell it, I promise that the people who have been hurt by this will also get something good out of this,” Gulden said in a statement to the press. 

However, Gulden also said that West is entitled to a portion of the proceeds of the sale of Yeezys per his royalty agreement.

The Numbers 

Adidas announced in February that, following its divergence from West, it is facing potential sales losses totaling around $1.2 billion and profit losses of around $500 million. 

If it decides to not sell any more Yeezy products, Adidas is facing a projected annual loss of over $700 million.

Outside of West, Adidas has taken several heavy profit blows recently. Its operating profit reportedly fell by 66% last year, a total of more than $700 million. It also pulled out of Russia after the country’s invasion of Ukraine last year, which cost Adidas nearly $60 million dollars. Additionally, China’s “Zero Covid” lockdowns last year caused in part a 36% drop in revenue for Adidas compared to years prior.

As a step towards a solution, Gulden announced that the company is slashing its dividends from 3.30 euros to 0.70 euro cents per share pending shareholder approval. 

Adidas has labeled 2023 a “transition year” for the company. 

“Adidas has all the ingredients to be successful. But we need to put our focus back on our core: product, consumers, retail partners, and athletes,” Gulden said. “I am convinced that over time we will make Adidas shine again. But we need some time.”

See what others are saying: (The Washington Post) (The New York Times) (CNN)

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U.S.

Immigration Could Be A Solution to Nursing Home Labor Shortages

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2 weeks ago

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March 7, 2023

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98% of nursing homes in the United States are experiencing difficulty hiring staff. 

The Labor Crisis 

A recent National Bureau of Economic Research paper has offered up a solution to the nursing home labor shortage: immigration. 

According to a 2022 American Health Care Association survey, six in ten nursing homes are limiting new patients due to staffing issues. The survey also says that 87% of nursing homes have staffing shortages and 98% are experiencing difficulty hiring. 

The National Bureau of Economic Research (NBER) outlined in their paper that increased immigration could help solve the labor shortage in nursing homes. Immigrants make up 19% of nursing home workers.

With every 10% increase in female immigration, nursing assistant hours go up by 0.7% and registered nursing hours go up by 1.1% And with that same immigration increase, short-term hospitalizations of nursing home residents go down by 0.6%.

The Solution 

Additionally, the State Department issued 145% more EB-3 documents, which are employment-based visas, for healthcare workers in the 2022 fiscal year than in 2019, suggesting that more people are coming to the U.S. to work in health care. 

However, according to Skilled Nursing News, in August of 2022, the approval process from beginning to end for an RN can take between seven to nine months. 

Displeasure about immigration has exploded since Pres. Joe Biden took office in 2021. According to a Gallup study published in February, around 40% of American adults want to see immigration decrease. That is a steep jump from 19% in 2021, and it is the highest the figure has been since 2016.

However, more than half of Democrats still are satisfied with immigration and want to see it increased. But with a divided Congress, the likelihood of any substantial immigration change happening is pretty slim. 

See what others are saying: (Axios) (KHN) (Skilled Nursing News)

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