Assembly Bill A9044

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9044
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             September 5, 2025
                                ___________
 
 Introduced  by M. of A. VANEL -- read once and referred to the Committee
   on Consumer Affairs and Protection
 
 AN ACT to amend the general business  law,  in  relation  to  prohibited
   practices related to loot boxes
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The general business law is amended by adding a new section
 399-l to read as follows:
   § 399-L. PROHIBITED PRACTICES RELATED TO LOOT BOXES. 1. THE  FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  "LOOT BOX" SHALL MEAN ANY PHYSICAL OR DIGITAL CONTAINER OR EQUIV-
 ALENT THAT, WHEN OPENED, AWARDS THE PURCHASER  ONE  OR  MORE  RANDOMIZED
 REWARDS.
   (B)  "PERSON"  SHALL  MEAN  ANY  NATURAL  PERSON,  ENTITY, OR GROUP OR
 PERSONS OR ENTITIES ACTING IN CONCERT, INCLUDING BUT NOT LIMITED TO  ANY
 THIRD-PARTY  PROVIDERS, AFFILIATED ENTITIES, SUBSIDIARIES, PARENT COMPA-
 NIES, JOINT VENTURES, PARTNERSHIPS, AGENTS, OR EMPLOYEES THEREOF, OR ANY
 ENTITY OR INDIVIDUAL ACTING AT THE DIRECTION OF,  IN  COOPERATION  WITH,
 UNDER  CONTRACT  OR IN PARTNERSHIP WITH, OR FINANCIALLY BENEFITTING FROM
 ANOTHER PERSON OR ENTITY.  MULTIPLE  PERSONS  IN  PARTNERSHIP  OR  UNDER
 CONTRACT,  WHERE ONE OR MORE PERSONS FINANCIALLY BENEFIT FROM SUCH PART-
 NERSHIP OR CONTRACT SHALL BE TREATED AS ONE PERSON FOR PURPOSES OF  THIS
 SECTION.
   (C) "LIQUID DIGITAL ITEM" SHALL MEAN ANY DIGITAL ITEM THAT CAN BE SOLD
 ON A DIGITAL MARKETPLACE.
   (D) "REPURCHASE" SHALL MEAN THE ACT OF OFFERING A CONSUMER MONEY, CASH
 EQUIVALENTS, CRYPTOCURRENCY, INCLUDING NON-FUNGIBLE TOKENS, ANOTHER LOOT
 BOX  OR  SIMILAR  ITEM,  A  LIQUID  DIGITAL  ITEM, ANY RIGHT, PRIVILEGE,
 STATUS, SERVICE, EXPERIENCE, OR ACCESS, OR POINTS THAT CAN  BE  REDEEMED
 TO  PURCHASE ANOTHER LOOT BOX, ITEM, CASH OR CASH EQUIVALENT, CRYPTOCUR-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13589-01-5
 A. 9044                             2
              

 
 RENCY OR A LIQUID DIGITAL ITEM IN  EXCHANGE  FOR  SOME  OR  ALL  OF  THE
 CONTENTS OF A LOOT BOX.
   2.  NO  PERSON OFFERING LOOT BOXES TO CONSUMERS WITHIN THE STATE SHALL
 REPURCHASE THE CONTENTS OF ANY SUCH LOOT BOX WHETHER DIRECTLY THEMSELVES
 OR INDIRECTLY THROUGH A THIRD-PARTY PROVIDER, AFFILIATED ENTITY, SUBSID-
 IARY, PARENT COMPANY, JOINT VENTURES, PARTNERSHIP,  AGENT,  OR  EMPLOYEE
 THEREOF,  OR  THROUGH  ANY OTHER CONTRACTUAL ARRANGEMENT WITH ANOTHER IN
 EXCHANGE FOR MONEY, CASH EQUIVALENTS, CRYPTOCURRENCY, INCLUDING NON-FUN-
 GIBLE TOKENS, ANOTHER LOOT BOX OR SIMILAR ITEM, A LIQUID  DIGITAL  ITEM,
 ANY  RIGHT, PRIVILEGE, STATUS, SERVICE, EXPERIENCE, OR ACCESS, OR POINTS
 THAT CAN BE REDEEMED TO PURCHASE ANOTHER LOOT BOX, ITEM,  CASH  OR  CASH
 EQUIVALENT,  CRYPTOCURRENCY OR A LIQUID DIGITAL ITEM, NOR MAY ANY THIRD-
 PARTY PROVIDER, AFFILIATED ENTITY,  SUBSIDIARY,  PARENT  COMPANY,  JOINT
 VENTURE, PARTNERSHIP, AGENT, OR EMPLOYEE THEREOF, OR ANOTHER THROUGH ANY
 OTHER  CONTRACTUAL  ARRANGEMENT  REPURCHASE OR REDEEM THOSE CONTENTS FOR
 SUCH VALUE.
   3. NO LOOT BOX SHALL CONTAIN MONEY OR ANY CASH EQUIVALENT  OR  CRYPTO-
 CURRENCY,  INCLUDING  NON-FUNGIBLE  TOKENS, ANY STATUS, TIER, MEMBERSHIP
 LEVEL, OR CREDENTIAL, OR POINTS THAT CAN BE REDEEMED TO PURCHASE ANOTHER
 LOOT BOX, ITEM, CASH OR CASH  EQUIVALENT,  CRYPTOCURRENCY  OR  A  LIQUID
 DIGITAL ITEM.
   4.  A  PERSON  WHO  VIOLATES  THE  PROVISIONS OF THIS SECTION SHALL BE
 SUBJECT TO A CIVIL PENALTY OF ONE  THOUSAND  DOLLARS  PER  VIOLATION  OR
 THREE  TIMES  SUCH  REVENUE  DERIVED  FROM  SUCH VIOLATION, WHICHEVER IS
 GREATER. FOR PURPOSES OF THIS SECTION, THE PERSON  OR  ENTITY  PROVIDING
 SUCH  LOOT BOXES SHALL BE HELD LIABLE FOR THE CONDUCT OF ANY THIRD-PARTY
 PROVIDER, AFFILIATED ENTITY, SUBSIDIARY, PARENT COMPANY, JOINT  VENTURE,
 PARTNERSHIP,  AGENT,  OR  EMPLOYEE THEREOF, OR ANOTHER THROUGH ANY OTHER
 CONTRACTUAL ARRANGEMENT PROVIDED HOWEVER THAT WHERE THE PERSON OR ENTITY
 PROVIDING SUCH LOOT BOXES IS NOT SUBJECT  TO  THE  JURISDICTION  OF  THE
 ATTORNEY  GENERAL,  ANY THIRD-PARTY PROVIDER, AFFILIATED ENTITY, SUBSID-
 IARY, PARENT COMPANY, JOINT VENTURE,  PARTNERSHIP,  AGENT,  OR  EMPLOYEE
 THEREOF,  OR  ANOTHER  THROUGH ANY OTHER CONTRACTUAL ARRANGEMENT THAT IS
 SUBJECT TO THE JURISDICTION OF THE ATTORNEY GENERAL SHALL BE JOINTLY AND
 SEVERALLY LIABLE FOR SUCH PENALTY.
   § 2. This act shall take effect immediately.