Games industry legal trends to watch in 2026: AI, child safety, loot boxes and more
2025 didn't surprise anyone in law. It confirmed what most in-house teams already felt: more AI fights, more consumer protection, and more scrutiny of platforms. 2026 will be tougher-more rules, clearer enforcement, and less room for "we'll fix it later."
Below is a practical briefing for legal teams in games. Short, direct, and focused on what to do next.
1) Artificial intelligence
Courts drew sharper lines. A Munich court backed claims that AI systems can reproduce protected works without permission, while Hamburg confirmed EU Text and Data Mining can cover AI training-if rights are properly reserved with machine-readable opt-outs. Plain text is not enough. Meanwhile, Cologne accepted "legitimate interest" as a lawful basis for AI training with opt-out, but other regulators (e.g., Brazil) pushed back hard.
Studios kept experimenting with code assistants and asset generators, raising concerns about copyright ownership and M&A risk where IP provenance is weak. The EU AI Office released a General Purpose AI Code of Practice, and the AI Act's transparency rules are starting to bite around NPCs and systems that affect minors.
2026 outlook: Expect large studios to train their own models and test boundaries. New AI use cases will expand (matchmaking, anti-toxicity, age checks, gameplay analysis, personalized pricing). Expect faster rules on deepfakes and higher governance standards for AI-assisted creation.
Action checklist
- Implement machine-readable rights reservations for IP you do not want used in AI training.
- Update AI governance: model inventories, training data bases, opt-out handling, copyright safety reviews, and player-facing transparency.
- Set human-in-the-loop standards for key visuals, narrative, and code modules that must remain protectable.
- Run an M&A-readiness review of AI-created assets and code provenance.
EU AI Office: GPAI Code of Practice
2) Online platform regulation (DSA)
The Commission published minors' protection guidelines covering in-game purchases, virtual currencies, and communications. It issued its first DSA fine to X for transparency failures. Harmonized transparency-report templates now apply. The first full reports using the template are due for publication by end of February 2026.
2026 outlook: Expect checks on games with social features, virtual currency, and UGC. More questions from Digital Services Coordinators and consumer groups based on those reports.
Action checklist
- Audit DSA transparency reporting against the Commission template and minors' protection guidance.
- Review notice-and-action flows, recommender disclosures, and ad transparency tied to in-game systems.
- Prepare documentation for authorities on UGC moderation, escalation, and risk assessments.
European Commission: DSA package
3) Terms/EULAs and consumer protection
Consumer authorities published "Key Principles" that treat premium currency and in-game spending like high-risk zones for minors and manipulation. The Commission is pushing a Digital Fairness Act on dark patterns, retention mechanics, and virtual currencies.
From June 19, 2026, distance contracts need a visible cancellation button across apps and sites. Expect immediate enforcement via warning letters once it goes live. "The Digital Fairness Act could fundamentally reshape game design for many free-to-play games," says Dan D. Nabel (Riot Games).
Action checklist
- Implement the EU cancellation button with compliant text and flows; document country-specific variants.
- Map all monetization UX against dark-pattern risks, especially for minors (timers, confusing currency conversion, nudges).
- Prepare for potential new duties on retention features and pay-to-win design.
4) Loot boxes
Regulators turned up the heat. The FTC settlement around disclosure and currency clarity set a baseline in the US. Brazil will ban loot boxes for minors starting in 2026. Australia now rates chance-based purchases at least 15+. Germany's Bundesrat wants stricter rules, potentially gambling treatment and 18+.
2026 outlook: Rules will keep tightening, often folded into broader "digital fairness" actions. Developers will try alternatives, but demand for randomized rewards won't vanish.
Action checklist
- Standardize clear odds and cash-value disclosures at point of purchase. Avoid multi-step conversions.
- Pre-build regional variants: minor bans, higher age ratings, storefront disclosures, ad claims.
- Review imagery and representations (wheels, chests) for accuracy and fairness claims.
5) Unfinished products, product descriptions, on-screen texts, right of withdrawal
The CPC's Key Principles spotlight withdrawal rights for unused premium currency and digital content purchased with money, in-game currency, or even personal data. Expect this debate to continue through 2026, alongside rising interest in sunsetting policies.
Action checklist
- Define and automate refunds/withdrawals for unused currency within 14 days where required.
- Align disclosures and on-screen texts with product readiness, server uptime, and known limitations.
- Draft sunsetting playbooks: timelines, refunds, communications, and data handling.
6) Clones and other IP disputes
App stores started enforcing trader identity in the EU, making takedowns and legal follow-up easier. Anti-bot and cheat cases continued, with courts narrowing some copyright angles on RAM manipulation while leaving EULA and unfair competition routes open. AI/IP tensions ramped up across sectors, signaling what's next for games.
2026 outlook: IP litigation remains active, but the bigger lever is IP strategy-licensing, anti-cheat, and AI boundaries. Keep an eye on emulator and bot cases; they're not going away.
Action checklist
- Use DSA trader data to tighten clone enforcement and escalation paths.
- Strengthen anti-cheat terms, detection notices, and evidence packages for swift injunctions.
- Establish an AI output policy for third-party tools that mimic your distinctive IP.
7) Market dominance and platforms (DMA, app stores)
Regulatory fights escalated in 2025, with fines and court rulings pressuring anti-steering rules and discriminatory link treatments. The business terms remain in flux, with alternative store economics still contested.
2026 outlook: Expect more remedial iterations. Smaller studios will track the outcomes and adjust distribution and payment routing accordingly.
Action checklist
- Model multiple distribution mixes under revised fees, core tech charges, and link parity rules.
- Pre-draft alternative billing disclosures that meet "equal prominence" standards.
8) Youth protection beyond blood and violence
Age ratings now consider interaction risks like chats and monetization. France advanced "double anonymity" age checks; Germany expanded enforcement powers (including payment blocking). Roblox pushed facial age estimation for certain features, and big platforms tuned teen defaults toward stricter content.
The risk in 2026: social media bans for minors bleeding into social gaming platforms. Expect proposals that treat large UGC games like networks.
Action checklist
- Plan for tokenized, privacy-preserving age checks (including EUDI wallet flows) without storing ID data.
- Segment features by age: voice chat, UGC publishing, and discovery algorithms for teen accounts.
- Document parental tools and teen-safety defaults for regulators and app stores.
9) Data protection
Big cross-border data news was quiet. A notable complaint targeted telemetry in a single-player context, arguing legitimate interests don't always win against player privacy. Meanwhile, one court was surprisingly open to AI training on public data with opt-outs.
2026 outlook: Expect guidance on aligning GDPR with the Data Act, AI Act, and the planned Digital Omnibus tweaks (including cookie rules). Simplification is the promise; edge cases will still need careful analysis.
Action checklist
- Revisit telemetry in single-player titles: purpose tests, minimization, and opt-out where feasible.
- Consolidate consent and legitimate interest frameworks across marketing, analytics, fraud, and AI training.
- Track cookie and consent banner updates under the Digital Omnibus proposal.
10) Esports
Dispute systems matured, some charitable recognition progressed, and Valve reshaped item economies and sponsorship rules around skins and case sites-forcing contract edits and brand cleanups. Separate from esports, major remote-execution exploits highlighted security risk across games.
2026 outlook: Profitability pressures persist. Expect debate over platform rule changes and their reach into event economics.
Action checklist
- Amend sponsorships and tournament rules to match publisher restrictions on skins, cases, and third-party sites.
- Review item economy changes for consumer law exposure, disclosures, and secondary-market shocks.
New in 2026: Product and cyber security (CRA, NIS-2)
Cybersecurity moves from "best practice" to "compliance program." The Cyber Resilience Act will pull connected games and game hardware into scope, with vulnerability handling and notification duties phasing in. NIS-2 coverage for critical tech partners increases indirect obligations.
Action checklist
- Scope your titles and launchers for CRA impact (even single-player titles that patch online).
- Stand up vulnerability disclosure, SBOM practices, incident playbooks, and notification workflows.
- Map vendor risk where NIS-2 applies (cloud, hosting, comms) and push contractual assurances.
New in 2026: In-game economics
Changes to creator payouts, odds access, and upgrade paths can move real money-and attract legal attention. Expect scrutiny around transparency, fairness, and market impacts when tuning in-game economies.
Action checklist
- Pre-assess economy updates for consumer law, disclosures, and price/odds clarity.
- Stage-rollouts with monitoring for player harm signals and rapid remedial comms.
Top 10 legal priorities for 2026
- AI
- Consumer protection
- Product and cyber security
- Youth protection beyond blood and violence
- Online platform regulation
- Clones and other IP disputes
- Loot boxes
- Data protection
- Market dominance
- Esports
Final note for legal teams
The pattern is clear: fewer grey areas, more checklists. Set up a monthly "compliance sprints" cadence-AI governance, DSA reports, minors' protections, CRA readiness-and keep product, trust & safety, and engineering in the room.
If your team is formalizing AI governance and needs structured training resources for cross-functional stakeholders, see curated options here: AI courses by job.
Your membership also unlocks:
