Public consultation sought by Spain regarding loot boxes, as European Union potentially escalates restrictions
In the ever-evolving world of video gaming, the issue of loot boxes continues to be a contentious subject globally. On May 31, 2022, Spain's Ministry of Consumer Affairs (MCA) published a public consultation before the elaboration of a regulatory project on loot boxes, signalling the latest move in the ongoing debate.
Loot boxes work by allowing players to use in-game currency to "spin" a slot machine-like mechanism for random rewards, such as avatars, weapons, or game upgrades. Gamers can retrieve loot boxes without making a purchase by completing missions, winning points, and so on.
However, the similarity between loot boxes and gambling mechanics has raised concerns among consumer groups and regulators. In 2018, the European Forum of Regulators expressed its worry, and in 2023, the European Parliament called for a unified EU approach to protect consumers and minors better from potential harms of loot boxes.
Different countries have adopted varied approaches towards loot boxes. Belgium and the Netherlands enforce outright bans, effectively requiring games to disable loot box features to be available on their markets. In contrast, the European Union does not have a harmonized law specifically on loot boxes, with regulations depending on individual member states. For instance, Belgium treats loot boxes as gambling, requiring special licenses, while Italy allows them under certain conditions or self-regulation.
The United Kingdom has refrained from banning loot boxes but imposed significant regulation under the Online Safety Act 2023, requiring platforms to conduct child access and risk assessments, enforce age verification, and oversee gambling-related content aimed at minors. Australia, Brazil, and China have also strengthened their consumer protection and gambling frameworks, adding mandatory age-verification for virtual gambling accounts and conducting regulatory reviews specifically on loot boxes.
In the United States, while no federal ban applies specifically to loot boxes, increased attention is on consumer protection, and some states have proposed legislation addressing gambling elements in games, often focusing on age restrictions. Self-regulation remains common, but there is potential for stricter government oversight.
The design and mechanism of loot boxes have been criticized for their potential to lead to addiction. Finn Lutzow-Holm Myrstad, director of digital policy for the Norwegian Consumer Council, stated that they are predatory and manipulative, targeting consumer vulnerabilities. A report published by the council claimed that loot boxes manipulate gamers into spending large amounts of money, potentially equating them to gambling.
As of mid-2025, global regulation of loot boxes in video games is fragmented, with different countries adopting varied approaches ranging from outright bans to self-regulation and consumer protection rules. The major trends reflect increasing scrutiny, especially regarding protecting minors and classifying loot boxes as gambling or not. However, no single global or regional framework exists; policies remain a patchwork of bans, licensing regimes, self-regulation, and consumer safeguards.
The article was last updated on May 31, 2022, at 10:49h. Despite the Dutch court's decision, game developers are not willing to take the risk, with Activision Blizzard preparing to release Diablo Immortal, a game containing loot boxes, which will not be available in the Netherlands or Belgium but will be available in the UK, which has also sought a loot box ban. The outcome in the Netherlands, where a court recently determined that loot boxes do not represent a form of gambling, three years after the country banned their use, serves as a testament to the ongoing debate.
Technology continues to play a significant role in the ongoing debate over loot boxes, with digital mechanics being at the heart of the controversy. In response to concerns about their potential addictive nature and resemblance to gambling, regulators and consumer groups are scrutinizing and implementing various regulatory projects and safety measures.
