Historically, video games followed a simple economic model: pay once and play forever. Today, many have adopted free-to-play ecosystems, where players get free access to the game, but are encouraged to spend money on extras to accelerate progress, obtain advantages or improve the game experience. Thus loot boxes, betting on skins and other microtransactions have become a controversial feature of many video games, and the line between entertainment and gambling has become blurred.
ESET, a leading proactive threat detection company, warns that sealed mystery boxes and other casino-like rewards can contribute to the development of gambling addiction among children and teenagers, who are often unaware that they are participating in a gambling dynamic.
“Loot boxes, not unlike lottery scratch cards or chocolate eggs containing random plastic toys, are perhaps the most controversial type of in-game rewards. Major games such as Candy Crush, Fortnite, FIFA, League of Legends and Final Fantasy have also relied on revenue from these “loot bags” and other microtransactions to support development costs. Studies estimate that by the end of 2025, loot boxes will generate more than $20 billion in revenue”, said Camilo Gutiérrez Amaya, head of the ESET Latin America Lab.
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Loot boxes work as follows: a player spends money to buy it or receives it as a reward, without knowing what it contains. That content is random, making it a game of chance. Rare and highly desirable rewards are intentionally scarce, which encourages repetitive spending.
Legislative measures on loot boxes in different countries
Some nations have begun to take steps to regulate or ban loot boxes and other microtransactions within video games:
- Australia: has enacted a law to prevent children from accessing games with loot boxes.
- United States: several states are evaluating measures to restrict these mechanics.
- United Kingdom: The UK Gambling Commission has not banned loot boxes, but has left the onus on the gaming industry to self-regulate and limit access to minors.
- Japan: has banned a specific type of loot boxes.
- Belgium: banned loot boxes in 2018, although the effectiveness of the measure has been questioned.
- Netherlands: some games with loot boxes have been banned.
- Spain: is advanced in regulations to control this practice.
How to mitigate the risks? Tips for parents to reduce the exposure of children and adolescents to this type of dynamics, ESET recommends:
- Talk to children about the mechanics in games, as they may not realize that they are engaging in behavior similar to gambling. They should understand the difference between earning rewards in a game and spending real money to buy random items.
- Monitor games and check if they have loot boxes or other microtransactions.
- Use features in the platform itself that allow them to set spending limits and restrict or disable in-game purchases. Review your settings to avoid accidental or excessive spending.
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