In most countries loot boxes aren’t legally gambling, because the prizes can’t officially be cashed out. Psychologically, though, they work a lot like it: you pay for a random outcome, and the rewards arrive on the same unpredictable schedule that makes slot machines hard to walk away from. Belgium has treated paid loot boxes as illegal gambling since 2018, both big app stores make games show the odds, and research keeps finding a link between heavy loot box spending and problem gambling.
What is a loot box? #
A loot box is any purchase where you pay first and find out what you got afterward. Games call them chests, crates, packs, capsules, spins or pulls. They’re bought with real money, or with premium currency that was bought with real money, and the contents range from common filler to rare characters and skins.
Not every random reward counts. A free chest you earn for finishing a level looks like a loot box, but you haven’t spent anything. The concern is paid boxes, especially in games children play. Gacha games are a big subtype with their own rules, such as “pity” counters, and we cover them in our gacha systems explainer.
Why do loot boxes feel so compelling? #
Rewards on an unpredictable schedule #
Behavioral psychologists have known for decades that rewards arriving after an unpredictable number of tries keep people going longer than rewards on a fixed schedule. Slot machines work this way, and so do loot boxes. Because the next box might be the one, stopping always feels a little premature.
The reveal is a show #
Opening animations, glowing colors for rare drops, cards that flip one at a time: the reveal is built to stretch out the anticipation. A near miss, where a rare item almost appears, can feel like progress, even though every open is independent of the last.
Currency hides the cost #
A pull that costs 160 gems doesn’t register like a $2 charge, and currency packs rarely divide evenly into pull prices. That distance between money and purchase makes it easier to keep going.
Chasing losses #
After ten pulls without the character you wanted, the money already spent argues for one more. That’s the sunk-cost trap, and boxes with no guarantee feed it directly.
Limited banners #
Many boxes are only sold for a short window, which adds FOMO to everything above. We explain how countdowns change decisions in limited-time offers in mobile games.
What does the research say? #
The best-known study is Zendle and Cairns (2018), a survey of 7,422 gamers published in PLOS ONE. The more severe someone’s problem gambling, the more they spent on loot boxes. On average, problem gamblers’ answers corresponded to roughly $20 to $40 a month, against roughly $1 to $10 for people without gambling problems. The link was specific to loot boxes. Spending on other in-game items showed a much weaker relationship.
A survey like this shows a link, not a cause. It can’t say whether loot boxes push people toward gambling problems or whether people already prone to gambling are drawn to loot boxes. Either way, the biggest spenders are disproportionately the people most at risk. In 2022 the UK government reviewed the evidence, found associations between buying loot boxes and gambling, financial and mental health harms, and chose to press the games industry to act rather than change gambling law.
Are loot boxes legal? #
| Where | Status |
|---|---|
| Belgium | Paid loot boxes treated as illegal gambling since the Gaming Commission’s 2018 ruling on FIFA 18, Overwatch and CS:GO |
| Netherlands | A 2018 ruling targeted boxes with tradeable items, but EA won its appeal against a fine in 2022 |
| United Kingdom | Not classed as gambling. The government asked the industry for parental controls, odds disclosure and spending safeguards |
| Australia | Since September 2024, games with paid loot boxes get at least an M rating, and games with simulated gambling get R18+ |
| China | Publishers must publish the odds of every item, with extra limits for minors |
| United States | No loot box law, but the FTC’s $20 million settlement with Genshin Impact’s maker in 2025 barred selling loot boxes to under-16s without parental consent |
| App Store and Google Play | Games must disclose the odds of each item before purchase, worldwide |
The store rules are in Apple’s App Review Guidelines (section 3.1.1) and Google Play’s payments policy, which both say games selling randomized items must show the odds before you buy. Laws here keep moving, so check your own country’s current rules if it matters to you.
How to protect kids from loot boxes #
- Block or approve purchases. On iPhone, Screen Time can block in-app purchases, and Ask to Buy sends each request to a parent. In the Google Play Store app, turn on purchase authentication so every purchase needs a password or fingerprint, and use Family Link for a child’s account.
- Don’t leave a card saved on a child’s device. Prepaid gift cards give a hard limit.
- Read the store page together. A long In-App Purchases list with chests, crates or packs is a sign of paid random rewards. Our guide to spotting pay-to-win games walks through the store page.
- Check the rating notes. The ESRB, for example, adds “In-Game Purchases (Includes Random Items)” to games that sell them.
- Talk about the odds. Showing a child that the item they want has a 0.6% chance usually does more than a lecture.
Games with no random paid rewards #
The simplest fix is a game that doesn’t sell chance at all. Flappy Kittens is one. Every cat and world in its shop has a fixed price in fish treats, which you collect while flying, not money, so you always know what you’re getting. The three rarest cats can’t be bought or rolled for. You earn them by reaching a score of 50, a score of 100, or an ×8 combo. It’s free with ads instead of purchases, which is its own trade-off, but there’s no box to open and nothing to gamble on.
Frequently asked questions #
Are loot boxes gambling? #
Legally, in most places, no, because the prizes have no official cash value. Belgium is the main exception. Psychologically they share gambling’s core ingredients, paying for an uncertain outcome with a small chance of a big reward, which is why researchers and regulators keep looking at them.
Are loot boxes illegal in the US? #
No. There’s no federal loot box law. The FTC has gone after specific practices instead, such as its 2025 settlement with Genshin Impact’s maker over loot box sales to young teens and unclear odds.
What’s the difference between loot boxes and gacha? #
Gacha is a style of loot box, named after Japanese capsule-toy machines, usually used to pull characters. Gacha games often add a “pity” system that guarantees a rare result after a set number of pulls. A plain loot box usually has no guarantee.
Do loot boxes have to show their odds? #
On the App Store and Google Play, yes, before you buy. Look for a “rates,” “odds” or “i” button on the purchase screen.
How can I tell if a game has loot boxes before downloading? #
Check the In-App Purchases list on the App Store page, look for a “random items” note in the age rating, and scan recent reviews for words like “gacha,” “pulls” or “crates.”