adminVideo game regulation 2026 is bringing new responsibilities for studios across in-game purchases, AI features, user-generated content and child safety. A single free-to-play game may combine virtual currencies, voice chat, player-created content and AI tools, each raising different legal questions in the EU and its member states. Planning for these requirements early can help teams identify risks before launch and avoid costly redesigns.
Dr Simon Hembt is counsel at Bird & Bird in Frankfurt, Germany. He advises games companies on IP, AI/tech, and media regulation. He co-edited Bird & Bird’s Game Plan 2026 report.
Image credit: Jim Petkiewicz on Unsplash
Several EU rules are already applying or moving toward implementation, while additional proposals are expected to shape future requirements. The six areas below outline what game developers and publishers should monitor and what practical steps may help.
Video game regulation 2026: six risks for studios
1. In-game shops and virtual currencies
In March 2025, the EU Consumer Protection Cooperation Network (CPC) took action against Swedish studio Star Stable Entertainment over practices it alleged included incentives for children to make purchases, unclear virtual-currency pricing and undisclosed influencer marketing. That month, the CPC also published principles for virtual currencies bought with real money. The principles state that consumer protection rules apply to purchases made using those currencies.
The guidance focuses on clear real-world prices, avoiding currency systems that hide costs, preventing forced surplus purchases, and providing understandable pre-purchase information and terms. It also addresses withdrawal rights, refunds for unused virtual currency and safeguards for vulnerable consumers. Coordinated enforcement by EU and national authorities began at the end of September.
The CPC acted against Star Stable in 2025 | Image credit: Star Stable Entertainment
Practical step: Show the real-money value beside virtual-currency prices and review bundles, refund information and purchase flows for clarity—especially where children may play.
2. AI transparency and generated content
The EU AI Act creates transparency duties for certain AI systems. Under Article 50(2), providers of generative AI systems, such as text-to-image tools, must mark outputs in a machine-readable way so they can be detected as artificially generated or manipulated. A studio that provides an AI tool for players to create user-generated content may qualify as the provider. The requirement began applying in August; systems already on the market have a grace period until December 2, 2026.
Some AI-generated depictions of real people, places or events may also need to be labelled. Exceptions can apply, including in certain creative contexts where a notice in the credits may be sufficient. Article 50(1) also requires providers of interactive AI systems to tell users they are interacting with AI, unless that is obvious. This can be a particular concern for games aimed at children.
The EU AI Act covers real-world representations | Image credit: Ubisoft
Practical step: Inventory AI features in each game before release. Identify which tools the studio provides and decide how disclosures and machine-readable markings will be implemented.
3. Digital Services Act duties for player content
Under the Digital Services Act (DSA), a game company that stores player-created images, text or designs may be considered a hosting service. If that content is made available to players generally, the service may also qualify as an online platform. The DSA applies different duties according to a service’s category, with the strictest obligations applying to very large online platforms. In August, the European Commission designated Roblox as a very large online platform.
Game providers generally do not have to review every upload in advance. However, they must respond promptly when they become aware of illegal content. Players need accessible ways to report content, and users whose content is removed or restricted must receive an explanation. AI creation features can increase the volume of potentially harmful or infringing uploads, making effective moderation processes important.
Article 28 is especially relevant to platforms accessible to minors. It requires appropriate and proportionate measures to provide children with a high level of privacy, safety and security. An age restriction written into terms and conditions does not by itself remove a service from scope. The European Commission’s July 2025 guidelines are non-binding, but enforcement authorities may use them when assessing compliance.
Practical step: Test reporting, moderation and appeal processes, and review child-safety settings against the way minors can actually access and use the game.
4. Gambling rules and loot boxes
The EU does not have a single harmonised gambling law, so national rules can lead to different outcomes for loot boxes and other staking-like features. Belgium has treated paid loot boxes as gambling since 2018. Courts in the Netherlands and Austria have declined to classify football player packs as gambling after considering the game as a whole. German law assesses features individually, including whether chance outweighs skill and whether a stake and prize have monetary value. The ability to transfer or cash out items may also be significant.
The European Parliament has called, in a non-binding resolution, for a ban on loot boxes in games likely to be accessible to minors. Since June, PEGI has rated new games featuring paid random items at 16 by default. German youth protection rules have considered interaction risks, including gambling-like mechanics, in age ratings since 2023. The Court of Justice is also considering whether app stores can be liable for offering games with illegal loot boxes.
Loot boxes must be carefully considered | Image credit: Blizzard Entertainment
Practical step: Assess each monetisation feature separately in every intended market before release; do not assume one country’s approach applies across the EU.
5. The proposed Digital Fairness Act
The European Commission planned to publish the first draft of the Digital Fairness Act (DFA) on November 11. The proposal is intended in part to turn concerns raised by the CPC into binding rules. Potential areas relevant to games include dark patterns such as false scarcity and countdown pressure, as well as designs intended to maximise the time or money consumers spend.
Daily streaks, variable rewards, push notifications, loot boxes, pay-to-win mechanics and virtual currencies could receive scrutiny, particularly where children are affected. The proposal may also address real-money price displays, personalised design that exploits vulnerabilities, influencer marketing and cancellation options. The DFA is not expected to apply before 2028, but its details may change during the legislative process.
Practical step: Track the proposal and document how purchase prompts, reward systems and marketing are designed, so changes can be assessed as the legislation develops.
6. The proposed KIDS Act
Proposed by the European Commission on September 17, the KIDS Act would cover video games that people can access, download or buy online. Under the proposal, games would be child-safe by default until age-assurance measures establish that a player is an adult; a self-declared age would not be enough.
The proposal includes mandatory parental tools, with children under 13 able to play only through those tools. It would also require protections against using games to direct children toward risky services elsewhere. Platforms that host player-made games would need tools to help ensure that this content meets the relevant requirements.
The Act is unlikely to apply before 2028. However, some related expectations already appear in the Commission’s DSA Article 28 guidelines, making parental controls and child-safe default settings worth reviewing now.
Practical step: Check whether parental settings are easy to find and use, and consider how age assurance could work without relying solely on a player’s own age declaration.
How studios can prepare for video game regulation 2026
Regulatory requirements are developing at both EU and national levels, and the same game feature may raise several different issues. A structured review can help studios set priorities:
- Map monetisation, AI, user-generated content and social features across each title.
- Identify the countries where the game will be offered and check relevant national rules.
- Review purchase disclosures, age-appropriate design, moderation and parental controls.
- Assign responsibility for monitoring legislative updates and documenting decisions.
Early planning is usually more manageable than changing a feature after it has been built into a game or live service. By treating video game regulation 2026 as part of product design and release planning, studios can better identify legal risks and prepare for requirements that are still evolving.
