By Josh Hall
If I asked you to close your eyes and think about gambling, the first thing that would probably come to your mind is Las Vegas. You would see the bright lights of the Vegas Strip and the beautiful scenery of all the Casinos and Hotels. But what if I told you that there is a new way to gamble, and you don’t even have to leave your house. You just need to own a video game console and be playing a game such as EA Madden NFL Football, 2K NBA, Overwatch, and so many more. Once you load one of these games up, you will be able to purchase (with real money or sometimes earned in-game currency) sealed mystery boxes that reward the player with random items to be used in the game.[1] It’s like having a slot machine in your living room.
GambleAware charity has had research completed that involved compiling existing research to look at the link between loot box prizes and gambling behaviors. The research found that “of the 93% of children who play video games, up to 40% opened loot boxes”.[2] GambleAware research also stated that “many games use a “psychological nudge” to encourage people to buy loot boxes – such as the fear of missing out on limited-time items or special deals.”[3]
Research and data show that video game loot boxes are gambling or, at the least, very similar to gambling. The last time I checked, paying money, pressing a button, and getting something random in return was a slot machine, which is gambling. But some people would disagree. The question is what is being done about this new form of in-home gambling. Belgium has been one of the most aggressive about regulating loot boxes. In 2018 Belgium said that loot boxes are considered gambling and “companies must possess a license before offering gambling services; however, video game loot boxes are not a product that can be duly licensed within the existing regulatory framework.”[4] In response to the ban on loot boxes in Belgium, the Belgian Minister of Justice has stated that “enforcing the law is too difficult in practice” and “completely ‘banning’ loot boxes might not be practically achievable.”[5] Unlike Belgium, here in the United States, the laws trying to regulate the Video Games industry and their loot boxes had moved no further than a proposed bill in the Senate.[6] It might be a while before the United States gets around to regulating this new form of in-home gambling.
Regulating new technologies can be difficult because new technologies are constantly changing. By the time the law catches up with the new technology, the technology might have already changed again so that it no longer fits the regulation that was placed on it. But when it comes to video game loot boxes, something should be done as soon as possible. The last thing we want is kids developing addictions to gambling because of loot boxes in their video games.
[1] BBC, Loot boxes linked to problem gambling in new research, BBC, (Feb. 28, 2023, 10:18 PM) https://www.bbc.com/news/technology-56614281.
[2] Id.
[3] Id.
[4] Leon Y. Xiao, Loot box State of Play 2022: Regulatory and policy research developments, GamesIndustry.biz, ( Feb. 28, 2023, 10:45 PM) https://www.gamesindustry.biz/loot-box-state-of-play-2022-regulatory-and-policy-research-developments#:~:text=Companies%20must%20possess%20a%20licence,within%20the%20existing%20regulatory%20framework.
[5] Id.
[6] S.1629 – 116th Congress (2019-2020): A bill to regulate certain pay-to-win microtransactions and sales of loot boxes in interactive digital entertainment products, and for other purposes, S.1629, 116th Cong. (2019), https://www.congress.gov/bill/116th-congress/senate-bill/1629/text.
Image Source: https://www.freepik.com/free-vector/shine-old-wooden-chest-realistic-composition-transparent-background-with-vintage-coffer-sparkling-particles_7497397.htm#query=loot%20box&position=2&from_view=search&track=ais