The EULA (End User License Agreement) is Mojang/Microsoft's legal contract that defines what you're allowed to do with Minecraft. It covers hosting servers, selling items, using mods, commercial usage, and acceptable content. Understanding the EULA is essential for server owners, especially those monetizing their servers, because violating the EULA can result in server blacklisting, account bans, or legal action from Microsoft.
What Is the EULA?
The EULA is the legal agreement you accept when you buy and play Minecraft. It grants you the right to use the game while setting boundaries on what you can and cannot do with it. For server owners, the EULA specifically outlines rules around hosting, monetization, and content.
When you first start a Minecraft server, you'll see a file called eula.txt in your server folder containing:
eula=false
The server won't start until you change this to:
eula=true
By changing this value, you're legally agreeing to follow Mojang's EULA. This isn't just a formality. It's a binding contract.
Is Hosting a Minecraft Server Legal?
Yes, hosting Minecraft servers is completely legal and explicitly permitted by the EULA. Mojang allows both personal and commercial servers. You can host private servers for friends, public community servers, or large multiplayer networks without legal concerns, provided you follow the EULA rules.
The EULA grants permission to:
- Host private servers for friends and family
- Run public community servers with open access
- Operate commercial servers that generate revenue
- Use mods and plugins to customize gameplay
- Charge players for certain types of content (with restrictions)
The key phrase is "with restrictions." You're allowed to make money from servers, but not in every way imaginable.
What You CAN Sell on Servers
The EULA allows monetization through specific methods:
- Server access: You can charge players a subscription fee to access your entire server. Everyone who pays gets the same access with no gameplay advantages.
- Cosmetic items: Skins, particle effects, chat colors, pets that don't affect gameplay, and decorative items are fair game. If it doesn't give a competitive advantage, you can sell it.
- Non-competitive gameplay perks: On non-PvP servers or PvE game modes, you can sell items and perks that affect gameplay as long as they don't give competitive advantages over other players. Examples: extra homes, faster crops, more inventory space.
- In-game currency for cosmetics only: You can sell virtual currency that buys cosmetic items. But if that currency can buy gameplay affecting items, you're violating the EULA.
- Donations with no rewards: Accepting donations without giving donors any in-game benefits is always allowed.
What You CANNOT Sell on Servers
These monetization practices violate the EULA:
- Pay-to-win items on PvP servers: Selling better weapons, armor, tools, or any item that gives paying players an advantage in competitive gameplay is banned. If your server has PvP elements, you cannot sell gameplay affecting perks that work in PvP areas.
- Hard currency (like diamonds or in-game money) for real money: Selling diamonds, emeralds, in-game money, or resources directly for cash is prohibited if those resources give competitive advantages.
- Gameplay features locked behind paywalls: You cannot lock game modes, areas of the map, or core gameplay features behind payment if non-paying players can't access them through gameplay.
- Loot crates with gameplay advantages: Randomized loot boxes (crates) that contain items giving gameplay advantages are banned, especially because they're considered predatory toward children. Cosmetic-only loot crates are allowed.
- Real money advantages in competitive environments: Anything that lets paying players beat non-paying players through purchased advantages rather than skill violates the EULA.
The "Competitive Advantage" Gray Area
The phrase "competitive advantage" creates confusion because Mojang hasn't clearly defined it. Based on enforcement actions and community understanding:
Likely EULA compliant:
- Selling ranks on a pure PvE survival server with no PvP where ranks give extra homes, kit commands, or cosmetic perks
- Selling access to special areas on creative servers
- Selling titles, prefixes, and chat formatting
Likely EULA violations:
- Selling enchanted diamond gear on a Factions PvP server
- Selling /fly command on a server with PvP enabled anywhere
- Selling claim blocks that let paying players protect more land than free players in PvP areas
The safest approach: if your server has any PvP elements, don't sell anything that affects gameplay. Stick to cosmetics.
Recent EULA Changes (2023-2024)
Microsoft updated the EULA and Usage Guidelines significantly:
- All servers are now considered commercial: Even if you don't make money, your server must comply with commercial usage guidelines. This means stricter content rules and monitoring.
- Age-appropriate content mandatory: All content on your server must be suitable for ages 10+. No gambling, explicit violence, profanity, or mature themes allowed.
- No fake player counts: Plugins that artificially inflate player counts to make your server look more popular are banned.
- Minecraft branding restrictions: You can't use "Minecraft" too prominently in marketing materials like YouTube videos or TikTok posts. Example: "INSANE NEW MINECRAFT SERVER!" in video titles is not allowed.
- Real-money trading enforcement: Selling Minecraft accounts, ranks, or items for real money outside your server (like on eBay or player-to-player) has always been banned but is now actively enforced.
How Mojang Enforces the EULA
Mojang enforces EULA violations through:
- Server blacklisting: Servers that violate the EULA can be added to Mojang's server blacklist, preventing players from connecting. When blacklisted, players see an error message saying the server has been blocked.
- Account bans: Server owners who repeatedly violate the EULA risk having their Minecraft accounts permanently banned.
- Legal action: For severe violations or large commercial operations breaking the EULA, Microsoft can pursue legal action including lawsuits and financial damages.
- Player reports: Players can report servers for EULA violations through Mojang's official form. These reports are reviewed and can trigger investigations.
Enforcement is inconsistent. Many pay-to-win servers operate for years without consequences, while others get blacklisted quickly. But the risk is always present.
How to Report EULA Violations
If you encounter a server violating the EULA, you can report it anonymously through Mojang's "Report a Concern" form on the Minecraft website. Include:
- Server IP address
- Description of the violation
- Screenshots of the server store or in-game purchases
- Evidence of pay-to-win items or inappropriate content
Mojang reviews reports but doesn't always act immediately. Server blacklisting can take weeks or months depending on severity and report volume.
eula.txt Technical Details
The eula.txt file is checked every time your server starts. If it doesn't exist or contains eula=false, the server immediately shuts down with a message directing you to read the EULA.
- Setting
eula=true in server.properties does not work. It must be in the separate eula.txt file. - Some server management panels create
eula.txt automatically when you click "Accept EULA" in the web interface. - If you delete
eula.txt, the server recreates it with eula=false on next startup.
The file is plain text and can be edited with any text editor.