Strike everything after the enacting clause and insert the following:

NEW SECTION.  Sec. 1.  "(1) The use of loot boxes and similar types of mechanisms that provide randomized virtual items, including virtual items known as "skins," in online games or apps has raised a number of serious problems and concerns, including: (a) Whether games and apps containing these mechanisms are considered gambling under Washington law; (b) whether the use of "skins" in online games or apps is considered gambling under Washington law; (c) whether these mechanisms or virtual items belong in games and apps; (d) whether minors and other young people, who may be more vulnerable to gambling addiction, should have access to games and apps with these mechanisms or virtual items; and (e) the lack of disclosure and transparency with respect to the odds of receiving each type of virtual item.

(2) The Washington state gambling commission must conduct a study of the use of loot boxes, skins, and similar types of mechanisms and virtual items in online games or apps. In conducting the study, the Washington state gambling commission must consider and gather information related to the problems and concerns described in subsection (1) of this section, legislation and regulation from other jurisdictions, and other matters the Washington state gambling commission determines are relevant.

(3) Not later than December 1, 2018, the Washington state gambling commission must provide the appropriate committees of the legislature written findings and provide recommendations regarding how to best regulate the practice of including loot boxes, skins, and similar types of mechanisms and virtual items in online games and apps, including options for the adoption and implementation of a regulatory and enforcement system, restrictions on the sale of games containing these mechanisms, and any appropriate disclosures.

(4) The Washington state gambling commission must consult with stakeholders in conducting the study and in making its recommendations.

(5) This section expires December 1, 2019."

On page 1, line 2 of the title, after "apps;" strike the remainder of the title and insert "creating a new section; and providing an expiration date."

EFFECT: Adds virtual items known as "skins" to the list of concerns and requires the Gambling Commission to include skins in the study and recommendations.