Tel Aviv Court Rejects EA's Jurisdiction Challenge in Loot Box Lawsuit
A Tel Aviv court ruled that Electronic Arts must face a class action lawsuit alleging its video game loot boxes constitute illegal gambling under Israeli law.
The Tel Aviv District Court rejected a motion by EA Swiss Sàrl, the international arm of gaming giant Electronic Arts, challenging the jurisdiction of Israeli courts in a class action lawsuit. The legal proceedings center on allegations that the company sells "loot boxes" in its video games, which reportedly constitute illegal gambling.
The class action request was filed in March 2025. The plaintiff, represented by attorneys Lior Lahav and Hadar Stampo, stated that he plays the company's virtual games in Israel and purchased virtual tokens in FIFA 23. According to the claim, the company encourages purchasing tokens used to buy loot boxes or randomized packs, yielding digital assets for in-game use.
Legal Arguments and Expert Opinion
The plaintiff argued that this mechanism constitutes pure gambling based on luck, transforming the sports game into an illegal gambling platform targeting minors. The lawsuit includes an expert opinion by Dr. Liraz Margalit regarding the addictive potential of loot boxes on players.
"The factual and evidentiary foundation laid by the applicant reveals a potential legal cause of action against the respondent," ruled Judge Tamar Snir-Porat.
Conversely, Electronic Arts rejected the allegations, arguing that the Israeli court lacks jurisdiction and that if the games constituted illegal gambling, the plaintiffs themselves would be violators of the law.
Court Ruling
Judge Tamar Snir-Porat dismissed the company's jurisdictional challenge, confirming that Israel is the appropriate forum for the proceeding. The court ordered EA Swiss Sàrl to pay the plaintiff 10,000 shekels in legal costs.
