Should Lootboxes in Online Games Be Regulated?
Is Lootbox gaming spinning out of control? Many gaming fans and critics are of the opinion that what were once fun and challenging games, are quickly turning into monetising schemes that are dangerously introducing gambling to vulnerable and innocent gamers (with emphasis on kids under the age of 18).
This new common practice has left governments in somewhat of a stir with increasing concerns that they leading to gambling addictions. Parents, gaming fans, and government officials alike are therefore insisting that they need to be regulated like your typical forms of gambling.
Highlighting lootboxes and their implications, this article will give you a sneak peek into the controversies that many societies are currently grappling with.

What Are Lootboxes?
Let’s take a step back quickly and discuss what lootboxes are and how they work.
Commonly referred to as “prize crates”, “downloadable content”, and “expansion packs”, lootboxes, in essence, are virtual boxes that people can purchase. These boxes contain “surprise” items that are relevant to the game you are purchasing from. The items can be anything from armour for a character to weaponry and magical that can enhance a character’s performance in the game.
These virtual boxes were previously accessed through endless hours of gameplay (sometimes this still applies), but more recently, gaming companies are encouraging gamers to buy them at any point during a game.
Are lootboxes a Form of Gambling? Yes - and No.
If we keep to the basics, then gambling involves betting on an anticipated outcome. The individual places the bet stands to gain something if his prediction is right or he will lose something (usually money) if he is wrong.
When you buy a lootbox, you are wagering your valuable money. You do not know what is inside the prize crate. You can only hope that it is going to be something of value to you.
And this is where the “yes-no” argument steps in. The gaming industry raises the point that lootboxes cannot fall into the category of gambling because the “purchaser” will get something for their money – even if it is not what they hoped it would be. In traditional gambling, if the bettor loses, he walks away with absolutely nothing.
So, Should Lootboxes Still Be Regulated?
While gaming developers are red in their faces trying to argue their point – many governments are currently putting strict regulations in place. These new laws are meant to protect vulnerable citizens who are becoming gambling addicts with lootbox gaming acting as the “gateway” to other forms of gambling. Kids under the age of 18 are currently the main focus.
Most countries are on the same page and agree that the same protective measures should be implemented for lootbox gaming as per your average gambling laws. But, while a few states have managed to deploy these regulations effectively, other efforts have been futile.
Google is also taking the matter quite seriously and as of 2019, they announced that games containing purchasable lootboxes must display the odds of finding each item. This gives players a better inclination of what they could be putting their money towards and what their chances are of finding the item they are specifically after.
In countries like the UK, governments are implementing their own gambling rules. For example, prize crate purchases will not be considered gambling if the contents can also be easily unlocked through a point system or by progressing through levels.
The Reality
The reality is that without a clear definition i.e. “is lootbox gaming gambling or not” – online game developers can continue to create their games within the blurred lines and inconsistent global regulation.
So, until the concept is solidified, it might be a while until lootbox gaming is regulated efficiently.