EA Sports Video Game Loot Box Challenge Sent for Arbitration

Electronic Arts Inc. convinced a California federal court to compel arbitration in a California man’s suit alleging it unlawfully entices players of Madden NFL and other sports franchise games to gamble through “loot box” purchases designed to enhance game play.

Kevin Ramirez didn’t dispute that he accepted EA’s terms of use, including a class action ban and a mandatory arbitration provision, but he argued the provision isn’t enforceable. An arbitrator, not the court, must decide that gateway question, Judge Beth Labson Freeman of the U.S. District Court for the Northern District of California said March 5.

Loot boxes, purchased with ...