> Then that virtual item can in turn often be sold to others for real money.

This, for the majority of IAP, is super untrue, unless you mean selling on a secondary market. If this is what you mean, then Wizards of the Coast better start worrying because anyone buying rares from the local gaming shop is now engaging in gambling and, by your logic, responsible by WotC.

In fact, the big problem here is precedence. How long do you think it will take before a litigious company starts targeting "physical" lootboxes like MtG or Pokemon or any physical variable reward package. The mechanics are the same, the reward rarity weight can be exactly the same, just the medium has changed.

This law is dangerous, because you could have gotten the same result (protect children/persons susceptible to skinner box mechanics) with a little more nuance.

Also, the big losers here are decent apps that don't have predatory IAP that are caught in the crossfire.

It's kind of shocking the lack of foresight being seen in this thread.