Loot box

A loot box is a special item in video game s that players can buy or earn while playing. When a player opens a loot box, they get a surprise set of items, like new looks for their character or powerful tools they can use in the game. These items are chosen randomly, so players never know exactly what they will get until they open the box.

The idea of loot boxes started in online games and mobile games around 2004 to 2007. Game makers like these systems because they help bring in money and keep players interested by giving them new things to find and collect. However, some people worry that loot boxes might encourage young players to spend too much money, almost like a form of gambling.

In the mid-2010s, loot boxes became very popular but also caused a lot of debate. Some games were criticized for making it too easy to win only if players spent real money on loot boxes. Because of these concerns, some countries started to regulate loot boxes, and many game developers changed to using different ways to make money, like battle passes.

Design

A loot box is a special item in video games that players can open to get random rewards. These rewards might be new looks for characters, useful items, or powerful tools for the game. Players can get loot boxes as rewards for playing, such as after leveling up or finishing a multiplayer game, or they can buy them with real money or in-game money.

When players open a loot box, the game shows exciting animations and sounds to make it more fun. The rewards inside are chosen by chance and have different chances of appearing, with rarer items being less likely. Some games change the chances to guarantee players get a rare reward after opening several boxes in a row. Players can trade or sell extra items they get from loot boxes, and some games let players use these items to buy exactly what they want.

History

Loot boxes are a way for video games to give players random rewards. They started as a way to add extra fun and excitement in games, much like getting surprise toys from a gachapon machine.

One of the first games to use loot boxes was MapleStory in 2004, where players could buy tickets to get random items. Later, games like Puzzle & Dragons and FIFA used loot boxes to let players buy special items or teams. Today, many popular games include loot boxes as a way to keep players engaged and earn extra money.

Criticism

Loot boxes in video games are often discussed because they can affect how players spend their time and money. Some people worry that these boxes encourage players, especially younger ones, to spend a lot of real money on chances to get special items. This can feel a bit like gambling, where players keep buying boxes hoping to get rare rewards.

Games with loot boxes sometimes change how the game is designed. In some cases, players might feel they need to buy loot boxes to compete fairly with others, which can change the balance of the game. Developers have to think carefully about how they use loot boxes to make sure the game is still fun and fair for everyone.

Regulation and legislation

Main article: Regulations protecting consumers from microtransactions

Because of their use of random chance to gain items after spending real money, games using loot boxes may be seen as a form of gambling. While gambling laws vary from country to country, a common theme is that loot boxes are usually not considered gambling because players cannot turn the items back into real money within the game.

Games with loot box systems have faced regulation in several Asian countries, and some Western countries are also looking into their legality. Concerns about loot boxes have been raised before, similar to issues with baseball cards and Pokémon Trading Card Game, but these did not greatly change how those industries operated.

Asia and Oceania

China

In December 2016, China announced rules requiring game publishers to share the chances of getting different items from loot boxes. These rules also limited how many loot boxes players could buy each day and made it more likely to get rare items after opening several boxes. By 2021, most top games in China had loot boxes, but only a few showed their chances clearly.

The rules also stopped publishers from selling loot boxes directly. Instead, players could buy game money and receive loot boxes as a gift. Starting in November 2019, China also stopped selling loot boxes to players under eight and limited how much older players under 18 could spend each month.

Japan

After the success of gacha games like Puzzle & Dragons in 2011, Japan said these systems were like gambling, especially for younger players. By May 2012, Japan banned a certain type of gacha system where completing a set of items would give a rarer one. This was done through legal opinions rather than new laws. Many game makers changed their games, but some found ways around the rules. Japan also formed groups to help control these systems, though these groups later joined larger industry organizations.

South Korea

In March 2015, South Korea suggested changes to their game rules to make companies share information about what players could get from loot boxes and the chances of getting each item. The game industry tried to self-regulate, but lawmakers kept suggesting official rules. By July 2018, rules required games to clearly show the chances of getting items from loot boxes. There were also plans to include other in-game purchases in these rules. In April 2018, a big company was fined for not clearly sharing this information. In February 2023, new rules were passed requiring companies to share these chances or face fines, and these rules started in March 2024. This led some companies to share their chances or change how they sold items in South Korea.

Singapore

In October 2014, Singapore passed a law to stop unlicensed gambling websites. The law said that spending real money for a chance to get random items counted as gambling. But the government later said that social games where players could not turn items into real money or trade them for other valuable things were not included. They also said platforms where players could buy other entertainment products with game money were not included either. However, the government warned that the line between social games and gambling was getting blurry and could change based on trends.

The law was reviewed in 2021 to possibly include rules for loot boxes and other new types of gambling.

Australia

In Australia, loot boxes might be seen as gambling if the items had value, even if only within the game. One group said loot boxes were gambling but could not take action against companies outside Australia. In 2018, a government group studied loot boxes and said they were like gambling and could hurt children. They suggested warning labels and age ratings for games with loot boxes. By 2020, game ratings in Australia started showing if a game had in-game purchases, including loot boxes. In 2022, a law was suggested to make games with loot boxes for players under 21, but it did not pass. In 2023, rules changed so that games with loot boxes would be rated for older players.

New Zealand

New Zealand’s gambling group said loot boxes were not currently considered gambling but were watching the situation.

Europe

Austria

In March 2023, a court in Austria said loot boxes in FIFA were gambling and illegal. The court said that since virtual items could be traded for real money, and players could get items by chance, this counted as gambling. The court ordered the company to refund players and to label FIFA as a gambling game, which would need a license. The company did not appeal by the deadline, so they had to refund the money.

United Kingdom

In 2017, the UK’s gambling group said that if items from loot boxes could be turned into real money or traded for other valuable things, they counted as gambling. They were studying loot boxes and suggested the game industry control itself. In 2018, a member of parliament asked the government to protect children from gambling in games. The government said they would watch the situation. In 2019, the gambling group said they could not control loot boxes unless the law changed but would raise awareness about the risks. In 2019, a report suggested the government stop selling games with loot boxes to minors and work with rating groups to label these games. The government said they would look into rules to protect children. In 2020, a health leader said companies should not sell loot box games to children because they could lead to addiction. In 2022, the government said they would ask game companies to make changes to reduce harm but would change laws if needed.

Netherlands

In April 2018, the Dutch gambling authority said that if games sold loot boxes and let players trade the items, this was illegal gambling. Four games were told to fix their systems or face fines. One company changed its rules so players in the Netherlands and Belgium could not open loot boxes. Another company was told to stop letting players in the Netherlands buy loot boxes or face fines, but later won a case saying their system was not illegal.

Belgium

In April 2018, Belgium said that loot boxes in FIFA, Overwatch, and Counter-Strike were games of chance and broke gambling laws. The country told companies to remove these systems or face fines. Some companies stopped letting Belgian players buy loot boxes, but one big company did not change its games and faced legal action. In 2019, the company said it would stop selling certain loot boxes in Belgium. In 2022, a study showed that Belgium’s ban was not being enforced, and many top games still sold loot boxes.

France

In 2018, a French senator asked a government group to study loot boxes. The group said in 2018 that loot boxes were not currently gambling but needed more study.

Germany

In 2018, a German group studying children’s media said loot boxes had features like gambling. They said this could break rules about advertising to children, but the games they studied were for players 16 and older. In 2021, Germany passed rules to update game ratings for games with loot boxes.

Sweden

In 2018, Sweden’s minister for public administration said he would ask groups to study loot boxes to see if laws needed to change to protect consumers.

Poland

In 2019, Poland said loot boxes were not gambling under their current laws.

European Union

A 2020 report from the European Parliament said loot boxes should be seen as a consumer protection issue rather than gambling. The report suggested rules to stop games from design features that make players spend too much, better information about loot box chances, and parental controls.

North America

United States

There are no laws in the United States against loot boxes, but there have been discussions about their effects. In 2017, two Hawaii representatives spoke out against loot boxes and planned to introduce laws to block the sale of Star Wars Battlefront II and possibly make games with loot boxes for people 21 and older. In 2018, bills were introduced but did not pass. In 2018, three senators in Washington state suggested the state’s gambling commission study loot boxes. In 2018, Minnesota suggested a bill to stop selling games with loot boxes to children under 18 and require labels. In 2019, a senator from Missouri planned to introduce a bill to ban loot boxes and pay-to-win features in games for minors, but it did not pass. In 2025, a big game company settled with a government group over claims that they let young players buy loot boxes without proper controls and did not clearly share information about loot boxes.

South America

Brazil

In 2025, Brazil passed a law to stop selling games with loot boxes to children under 18, with enforcement starting in March 2026.

Multi-national

In 2018, gambling groups from many European countries and one U.S. state said they would work together to address the risks of loot boxes.

Self-regulation

Video game groups have said they cannot control loot boxes unless laws say what counts as gambling.

Europe

In many European countries, a group called PEGI gives ratings for games. PEGI said they would not automatically label games with loot boxes as having gambling content, but in 2020, they said they would add a label for games with paid random items. By July 2026, PEGI will require games with loot boxes to have a PEGI 16 rating or higher.

Japan

Before 2015, a Japanese group gave rules for gacha systems, like having at least a 1% chance to get a reward and a spending limit. Now, another group gives rules like sharing all possible rewards and their chances, and showing changes when the game updates.

United Kingdom

A UK game group said loot boxes were not gambling and followed current rules.

United States

A U.S. group that gives game ratings, the ESRB, said they would not label loot boxes as gambling but would start labeling games with in-game purchases in 2020. In response to a letter from a senator, the ESRB said they would require labels for games with in-game purchases. The U.S. government group said they would study loot boxes. In 2019, the group held a meeting on loot boxes and said game companies would start sharing the chances of getting items from loot boxes. Some companies said they would do this by the end of 2020. One company said it would require sharing these chances for games on its systems. Another company said it would follow similar rules and had already removed loot boxes from some games.

Worldwide

In 2017, a store for mobile games started requiring companies to share the chances of getting items from loot boxes. Another store followed in 2019. In 2018, a group for game makers said the industry should act on loot boxes before governments did. In 2019, a review site started including loot box information on game pages. From 2024 to 2025, several countries updated their rules on loot boxes. Belgium kept its ban, the Netherlands allowed some but not others, China required sharing chances and limited purchases, and Japan kept rules on a related system. Reports from the UK Parliament in 2023–2025 looked at whether loot boxes should be considered gambling.

Litigation

In February 2020, two separate legal cases were started in France against a company called Electronic Arts regarding their FIFA games. The cases argued that parts of the game act like uncontrolled gambling. One person said they spent over €600 on game packs but never got the best items, which were needed to compete online with others. The cases also pointed out that the games do not have controls to help stop young people from spending too much.

In June 2020, another legal case was started in California against Apple. It claimed that by allowing games with loot boxes on its App Store, Apple helps create situations where people, including children, might spend money in ways that feel like gambling. The case said this goes against laws meant to protect people. In August 2020, yet another case was started in California against the same company, asking a jury to decide if these game features should be considered gambling and asking for $5 million in damages. Later, in November 2020, a different case was started against the same company, saying that changes in game difficulty were designed to make players more likely to buy items. This case was stopped in March 2021 after the company shared more information.

In January 2022, a legal case was started in Illinois against another company for using loot boxes in their NBA 2K games. The case was started by a parent of a young person, saying the games make it hard for players to understand the real cost of buying these items.

Impact

Because of concerns and rules in late 2017, some game makers stopped using loot boxes in their games. Games like Star Wars Battlefront II, Dauntless, Middle-Earth: Shadow of War, Forza Motorsport 7, and Rocket League changed how they earn rewards. Others started using different ways to earn rewards, like challenge-based battle passes from Fortnite Battle Royale.

Some games kept loot boxes but changed how they work. In March 2019, Heroes of the Storm stopped letting people buy loot boxes with real money. In January 2019, Epic Games changed how loot boxes work in Fortnite: Save the World so players could see what’s inside before buying. In 2022, Epic Games also stopped letting people buy loot boxes with real money. In June 2021, EA let players see what’s inside loot boxes in FIFA 21 before buying them.