Loot boxes have become one of gaming's most notorious controversies in recent years, with governments across the world arguing whether they should be deemed a form of gambling, especially considering they're targeted towards younger demographics. It's been reported that another country is considering taking action against the use of loot boxes in video games, with Brazil launching an inquiry into banning the mechanic and potentially imposing a $700,000 fine against several significant publishers currently using it.

Reported by Brazillian outlet The Enemy, the country's public ministry has accepted the inquiry first proposed by the National Association of Child and Adolescent Defense Centers. The lawsuit mentions a handful of publishers that could be dealt fines should the ban be passed, including EA, Ubisoft, Valve, Tencent, Activision, and Nintendo.

RELATED: Study Shows Link Between Loot Boxes and Problematic Gambling

The Enemy was reportedly given access to the opening of the lawsuit against Singaporean game publisher Gareon, revealing that the company has been forced to suspend the use of loot boxes in its games "until further definition of its use by children and adolescents." Seeing as gambling has long been illegal in Brazil, it's unsurprising to see the country crack down on the use of loot boxes in popular games.

Study Loot Box Gambling

This is far from the only account of a country take a firmer stance on randomized microtransactions in recent years, with other detractors including The Netherlands, Australia, Sweden, and Belgium. Back in early March, Germany posed a new law that would add warnings to games featuring loot box mechanics, considering the idea as a means to warn parents. Meanwhile, the UK has had a long history with loot boxes, with the House of Lords calling for the microtransactions to be reclassified as gambling last July. Even recently, a report from the universities of Plymouth and Wolverhampton emerged stating that there's a direct connection between gambling and loot box habits.

Despite the studies and the hefty lawsuits imposed, companies like EA have long attempted to dispute the link. The publisher has been hit with several major fines and lawsuits over the years due to its heavy inclusion of loot boxes in franchises like FIFA, Madden, and NHL. It was even hit with a €10 Million fine courtesy of the Holland District Court back in October, with the company's FIFA Ultimate Team mode accused of endorsing gambling to minors. It's just one of the many major companies that have relied on these mechanics to generate high revenue, with some of gaming's most popular franchises also putting loot boxes at the forefront of their experiences.

MORE: House of Lords Calls for Loot Boxes to be Immediately Reclassified as Gambling

Source: The Enemy