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Are loot boxes gambling?

The digital debate every gamer should know

18 March 2025

What are loot boxes?

In simplest terms, loot boxes are mystery rewards players can earn or buy. Think of them as digital versions of Kinder Eggs, but instead of chocolate and toys, they contain skins, weapons, or characters to enhance your game. Sounds fun, right? Except you don’t know what you’re getting until you’ve paid. Cue disappointment when that elusive Messi card in FIFA Ultimate Team turns out to be yet another low-tier player.

The gambling argument

Critics argue that loot boxes mimic the mechanics of gambling. You pay for a chance at a desirable outcome, complete with flashy animations and dopamine-fueled suspense. Younger players are especially vulnerable, with some spending hundreds—or even thousands—chasing rare items.

The Norwegian Consumer Council has even labelled loot boxes as “predatory mechanisms” that exploit psychological tricks to drain wallets. Sound familiar? That’s because it feels suspiciously like pulling the lever on a Vegas slot machine, except your reward is a virtual hat rather than a pile of cash.

Developers defend their treasure chests

Game developers, however, see things differently. They compare loot boxes to toys like mystery figurines, claiming they’re just “harmless fun.” Since most loot boxes don’t pay out real money, they argue they don’t qualify as gambling. But with gaming companies raking in an estimated $15 billion annually from loot boxes, it’s clear these digital party bags are more than just fun—they’re big business.

A lack of transparency

Transparency remains a sore spot. In the UK, only two of the 45 top-grossing games disclose loot boxes in their advertising, despite being required to by law. That lack of clarity leaves players unaware of the odds—or costs—involved.

Are loot boxes all bad?

Not necessarily. For some players, loot boxes add excitement to gaming. Plus, self-regulation within the industry has started to improve, with guidelines for clearer disclosure. Yet, countries like Belgium and Japan have gone further, banning or regulating loot boxes to protect consumers.

So, are loot boxes gambling?

The answer depends on who you ask. Critics say yes, developers say no, and governments remain undecided. What’s clear is that players need to approach loot boxes with caution—because while you might win a cool skin, it’s easy to lose track of how much you’re spending.

Watch the full video for more insights!

Check it out on the Craig’n’Dave YouTube channel, and don’t forget to visit our website for more gaming and computer science insights.

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