If you’ve never heard of them before, loot boxes are mystery bundles of virtual items related to a video game. They can be won by a gamer as a reward or purchased using real money. The contents of these loot crates may allow you to unlock special characters, equipment, or “skins” which can change the appearance of something in the game or allow access to new levels. 

Loot boxes differ from other in-app or in-game purchases because their contents are unknown before purchase. With other in-game purchases, you choose exactly what you are buying, but the contents of loot boxes are left entirely to chance and could be an item of value in the game or not. 

Common in many games, including FIFA, Overwatch, Roblox, and Mario Kart Tour - Loot boxes have different names, but the premise remains the same. 

Due to the possibility that you will receive something rare or valuable, loot boxes seem exciting. An item could make your game persona unique, or it may let you progress to another level and allow access to higher-quality items in the game.

 Gaming Loot Boxes Attract Controversy

While a relatively new phenomenon, loot boxes have attracted controversy, including concerns that they may be exposing young people to gambling. The comparison to gambling is based on the randomised chance involved in the outcome of what a user will receive, effectively making it a game of chance.  

Loot boxes are also the subject of criticism in light of the mechanics used when a prize is awarded. In essence, these boxes award prizes much the same as a slot machine does. Much like hitting a jackpot while playing slots, high-value items from loot boxes have a slim chance of dropping. 

While some loot crates are opened for free, many require a key or token to be accessed. These keys or tokens cost real money, and even if a valuable item is received, it is limited to the confines of the game or the platform. Some third-party platforms offer an exchange of virtual items, the value of which can be converted back to real money. 

In 2018, Belgium effectively banned the use of loot boxes or similar mechanics, recognising that the use of such in-game awards within video games is in breach of the established gambling regulations. 

New Study Examines the Impact of Loot Boxes

A breakdown has revealed that approximately 80% of the research participants self-described as regular gamers, while some 60% admitted to participating in gambling activities over the past year. 

The research also uncovered a concerning trend, concluding there’s a connection between simulated gambling as a part of video games and gambling in the real world. It also found that young people exposed to gambling mechanics in video games were more likely to exhibit irresponsible or problematic gambling behaviour later on. 

An expert conducting the research concluded that even though a small percentage of young people exhibit problematic gambling behaviour, loot boxes can be a dangerous step in the wrong direction.