NUKOE

loot boxes: how they encourage repeated purchases

• 13 min •
A man's hand on the lever of a slot machine, blurred lights in the background.

In September 2019, British MPs officially called for loot boxes to be regulated as gambling, with a ban on selling them to minors. Six years later, the US Federal Trade Commission (FTC) imposed on the developer of Genshin Impact a ban on selling these same contents to under-16s without express parental consent. These two events illustrate a persistent tension: legislators and regulators increasingly regard these random purchase mechanics as a consumer protection issue, while the video game industry defends their playful nature and their non-equivalence to gambling.

For parents, the question is all the more urgent because children and teenagers are exposed to these systems daily. But before deciding, it is necessary to understand what exactly these virtual boxes are, how they work psychologically, and why the legal framework remains unclear. This article takes stock of what the law says today, what research reveals, and what reflexes to adopt as a parent or educator.

> Key points to remember

> - Random purchase mechanics use uncertainty to encourage repeated purchases.

> - The legal framework remains fragmented: the United Kingdom has not legislated, but the FTC has imposed restrictions on Genshin Impact.

> - Many parents do not know what a loot box is, which complicates the protection of minors.

> - Simple measures (parental controls, discussion, expense tracking) can limit the risks.

What is a loot box? Definition and examples

A loot box is a virtual item purchased in a video game, often with real money or virtual currency, which contains a random selection of items: characters, appearances, weapons, emotes, etc. The player does not know the contents before opening it. This mechanism is found in popular games such as Overwatch, FIFA, Genshin Impact, or many mobile games.

The principle is simple: pay to obtain an uncertain reward. This uncertainty is at the heart of the concerns. According to the UK Safer Internet Centre, "in September 2019, MPs called for these mechanics to be regulated under gambling legislation and for their sale to children to be banned." This wording emphasizes that, for many, the loot box works like a virtual slot machine: you stake money, receive something of variable value, and the outcome is determined by chance.

Yet video game publishers insist on a fundamental difference: unlike gambling, these contents do not allow you to "win" real money, and the content remains within the game universe. A player on the official Overwatch forums thus answered the question "Are loot boxes gambling?" by saying: "They have parents, you know? Most of those who play Overwatch. And the contents of loot boxes are visible in the hero gallery." For this player, the transparency of the catalogue and the parental role are enough to rule out the analogy with gambling. But this view is not shared by everyone.

What the law says: a fragmented landscape

The regulation of loot boxes varies considerably depending on the jurisdiction. Two recent examples illustrate different approaches: the United Kingdom opted for an in-depth analysis but without a general ban, while the United States began to intervene in a targeted manner through the FTC.

United Kingdom: parliamentary pressure without binding legislation

In the United Kingdom, in September 2019, a parliamentary report concluded that these mechanics should be regulated as gambling and that their sale to children should be banned. The Safer Internet Centre relayed this position by listing 11 things to know, in particular their omnipresence in games intended for children and the absence of effective protection mechanisms. However, despite these calls, no federal law was adopted. The British government instead launched consultations and calls for industry self-regulation, with mixed results.

United States: the FTC imposes strict conditions

In the United States, the FTC has adopted a more direct approach. In January 2025, it announced that the developer of Genshin Impact (Cognosphere) would be prohibited from selling random content to teenagers under 16 without explicit and affirmative parental consent. According to the press release, the company can no longer allow those under 16 to purchase such content in its games without the explicit and affirmative consent of a parent. This decision follows an investigation into the game's monetization practices, including the use of opaque virtual currencies and mechanisms that incentivize repeated purchases.

This action marks a turning point: it is one of the first times a U.S. federal regulator has imposed such specific restrictions on these systems. It could serve as a precedent for other titles and encourage publishers to review their monetization systems for minors.

Why the brain loves uncertainty

The analogy with gambling is not based solely on legal considerations, but also on neurological mechanisms. According to the American Psychological Association (APA), understanding the mutual influence between these mechanics and gambling behaviors remains an ongoing effort. However, research on gambling shows that the brain reacts strongly to reward uncertainty.

When a person plays a slot machine, each lever pull triggers anticipation: the brain releases dopamine, a neurotransmitter associated with pleasure and motivation. This dopaminergic spike occurs not so much at the moment of reward, but during the phase of waiting for the outcome. Loot boxes reproduce exactly this pattern: opening a box, with its bright animations and sounds, creates a moment of suspense that activates the same neural circuits.

This type of mechanism is known in psychology as "variable ratio reinforcement": the reward arrives unpredictably, which encourages repeating the action more often than if the reward were guaranteed. This is the principle of slot machines, and it also applies to random content. Even if the content has no real monetary value, the excitement of uncertainty can reinforce the desire to buy again, especially among young people whose prefrontal cortex – responsible for impulse control – is not yet mature.

Maryhaven, an addiction treatment center, emphasizes that "gaming disorder and loot boxes follow parallel paths to problematic gambling." Another key psychological factor is the "sunk cost" effect. After spending money on a series of boxes without obtaining the desired item, a player may be tempted to keep buying "to get their money's worth" from previous spending, thereby increasing the amounts spent.

Players' views: "They have parents, you know?"

The debate is not limited to regulators and researchers. Players themselves have mixed opinions. On the official Overwatch forum, one user responded to those accusing Blizzard of promoting gambling: "They have parents, you know? Most of those who play Overwatch. And the contents of loot boxes are visible in the hero gallery." This argument highlights two ideas: on the one hand, parents are responsible for monitoring their children's spending; on the other hand, the transparency of the catalog makes it possible to know which items can be obtained even before buying a box.

A parent and child sitting together in front of a family computer

But this optimism is challenged by studies. As Royal Society Open Science has shown, many parents do not know what a loot box is. If a parent is unaware that the mechanism exists, they cannot exercise oversight. Moreover, simply viewing items in a gallery does not provide information about the probability of obtaining them: a legendary item displayed next to a common item says nothing about the chance of receiving it.

Three little-discussed findings that change the picture

Rather than repeating the usual arguments for or against, here are three findings supported by the sources that shed a different light on the debate.

1. The legal definition of "chance" does not always cover these systems

In many gambling laws, the definition requires three elements: a stake of money, an outcome determined by chance, and a prize of money or goods with monetary value. However, loot boxes do not always meet the third criterion: the content obtained is generally non-transferable and has no official market value. This is why several jurisdictions, including the United Kingdom, do not automatically classify them as gambling. Supporters of strict regulation believe this definition should be broadened, while the industry relies on this legal gap.

2. Parents are not always equipped to detect problematic purchases

The Royal Society Open Science study not only shows that parents do not know what a loot box is, but also that they struggle to identify purchase receipts linked to these mechanisms. Bank statements often mention the platform name (App Store, PlayStation Store) without detailing the type of purchase, making it difficult to track a child's spending. In addition, children can use gift cards or prepaid accounts, thus escaping parental control.

3. The boundary between "game" and "bet" is increasingly porous

Historically, video games and gambling were separate industries. Today, mechanics from casinos (wheel of fortune, mystery boxes, random draws) are integrated into games intended for children. Maryhaven notes that "government officials in the United Kingdom are examining whether gambling laws should cover this content," evidence that the confusion between the two worlds has become a public health concern. This porosity worries clinicians who observe behavioral similarities between excessive video game players and pathological gamblers.

Comparative table: loot boxes and classic gambling

To clarify the differences and similarities, here is a comparative table based on the criteria used by regulators and researchers.

Smartphone placed next to casino chips on a table

| Criterion | Classic gambling (e.g. slot machine) | Loot box (e.g. in a video game) |

|---------|-----------------------------------------------|----------------------------------|

| Real money stake | Yes, directly | Yes, often via virtual currency or in-app purchase |

| Random outcome | Yes | Yes |

| Real money prize | Possible (cash prize) | No, virtual prize only |

| Market value of the prize | High, can be resold | Generally zero or low, non-transferable |

| Specific regulation | Often strict with licenses, minimum age, taxes | Variable: almost nonexistent or targeted (e.g. FTC for Genshin Impact) |

| Target audience | Adults | Children and adolescents mainly |

| Transparency of probabilities | Often required by law | Rarely clearly displayed |

This table shows that while a real money prize distinguishes gambling, uncertainty and money stakes bring loot boxes very close to betting. This is why some experts believe that simply being "in a video game" should not exempt these mechanics from appropriate regulation.

What Can Parents Do? Practical Advice from the Sources

The UK Safer Internet Centre offers a series of concrete recommendations to help parents supervise the use of these mechanisms. Here is an applicable summary.

1. Learn about your children's games. Before allowing a game, check whether it contains loot boxes. PEGI or ESRB ratings sometimes mention in-game purchases, but not always these systems specifically. The simplest approach is to search online for "[game name] + loot boxes" or consult parent forums.

2. Disable or limit in-game purchases. On most platforms (consoles, smartphones), it is possible to disable in-game purchases or protect them with a password. Also enable parental controls that allow you to block purchases above a certain amount or require authorization for each transaction.

3. Discuss randomness and value. Explain to your child that these systems are designed to encourage spending more, and that there is no guarantee of obtaining the desired item. Use simple analogies: "It's like buying a pack of collectible cards without knowing which cards are inside."

4. Monitor bank card statements. Purchases of virtual currency may appear under unclear labels. Regularly ask your child to show you their in-game purchases, and check the real cost in euros together.

5. Use prepaid cards. If purchasing virtual content is unavoidable, favor prepaid cards with a limited amount rather than registering a bank card. This avoids accidental overspending.

6. Report abusive practices. If you believe a game is targeting children in a deceptive manner, you can report it to consumer associations or national regulators. Repeated complaints help drive regulatory change.

What the Future Might Hold

The FTC's decision against Genshin Impact in January 2025 is a strong signal: regulators are beginning to treat these systems not as a simple entertainment product, but as a potentially predatory mechanism when it targets minors. Other jurisdictions could follow this example, particularly by requiring greater transparency about odds or by imposing age limits.

In the United Kingdom, the debate remains open. The 2019 parliamentary calls did not result in legislation, but public pressure and scientific studies could relaunch the process. Countries such as Belgium and the Netherlands have already taken restrictive measures, although the sources provided do not detail their approaches.

For parents, the key is to stay informed and to treat these mechanics as a permanent topic of discussion rather than a one-off problem. The boundary between gaming and gambling is not always clear, but vigilance and media literacy remain the best protections.

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