EU Kids Act proposal threatens daily login rewards and activity streaks in games

The European Commission's proposed EU Kids Act could significantly reshape how game developers use engagement mechanics for younger players. The legislation, currently in proposal stage, would prohibit games from using features designed to encourage compulsive or excessive play among minors.

Daily login rewards, activity streaks, and other time-based mechanics fall under the Act's restrictions. The proposal specifically targets features that reward players for returning within certain timeframes or penalize them for failing to play regularly. These mechanics are core to many modern games, from mobile titles to console releases.

According to Isabel Davies, senior associate at law firm Wiggin, the implications for the gaming industry are substantial. "As drafted, daily log-ins, activity streaks and other time-based mechanisms are under threat," Davies told PocketGamer.biz. "Games companies will need to start considering whether they want to continue employing these kinds of techniques for their adult EU users (in which case, proper age assurance will be needed) or whether they want to remove them for all EU players. Either way, this will massively impact many games' core gameplay loop."

The EU Kids Act proposal covers online games alongside social networking services, video-sharing platforms, AI companions, and app stores. It includes mandatory parental control tools, age-rating systems on app stores, and restrictions on features that undermine players' decisions to stop playing or encourage excessive use.

Davies warned that this represents only the beginning of regulatory pressure on game mechanics. The proposal could set a precedent for broader restrictions on virtual currencies and loot boxes, which many expect to face scrutiny under the upcoming Digital Fairness Act.

Peter Lewin, partner at Wiggin, noted the broader regulatory landscape developers now navigate. "Child safety in digital spaces is quickly becoming one of the most heavily regulated areas out there," he said. "Assuming the EU Kids Act and Digital Fairness Act ultimately become law, together with the existing DSA, we could then have three separate pieces of legislation all covering child safety, and that's just in Europe."

The European Parliament and the Council will now examine the proposal and negotiate the final text. Industry experts encourage stakeholders to voice concerns during this period, as the Act's scope could fundamentally alter how engagement systems function across the gaming industry.