Since their inception, loot boxes were mostly regarded as a nuisance to players and a source of extra revenue for developers. But recently, more and more research has attempted to link loot boxes with gambling. And it all began with the scandal over Star Wars: Battlefront II.
Governments Growing Concerned: Loot Boxes as Gambling for Minors
Loot boxes weren’t suddenly controversial — jurisdictions began scrutinizing them gradually over years. In Japan, one of the earliest moves: in 2012, the Consumer Affairs Agency legally ruled loot boxes as a form of gambling — classifying virtual items as prizes — and effectively banned them for minors.
In the UK, the Gambling Commission initially said it did not consider loot boxes to be gambling because the winnings had no material value. But that stance is shifting. The House of Lords’ Gambling Committee recently labeled loot boxes as gambling available to minors and recommended updating the 2005 Gambling Act accordingly.
The European Union’s committee on the internal market and consumer protection studied loot boxes and concluded they share many characteristics with gambling, suggesting they may provoke addiction. They proposed treating loot boxes under consumer protection frameworks across the EU.
In Australia, a study by the University of Queensland (commissioned by state authorities) found many respondents viewed loot boxes as addictive and akin to gambling. They noticed that people more predisposed to gambling behavior were likelier to purchase loot boxes. Still, legal reforms have lagged: in Australia, loot boxes qualify as gambling only when they yield prizes with real monetary value.
In the U.S., several California state court cases target Electronic Arts and Apple, accusing them of facilitating gambling-like behavior among minors via loot boxes. Plaintiffs argue Apple benefits from loot box sales via its 30% cut of in-app transactions, while EA uses monetization schemes that promote addiction.
Belgium and the Netherlands banned loot box sales entirely in 2018. Some developers complied or removed such mechanics; others pulled games from those markets altogether.
In Germany, governmental review found that randomized reward boxes exhibit traits of gambling. But enforcement has been weak, partly because many games target ages 16+ and strict legal mechanisms to sanction developers are lacking.
In the U.S., no federal law specifically regulates paid random item mechanics. In 2018, Hawaii’s legislature proposed bills to ban games with loot boxes, but they were never passed.
It is notable that many governments began reacting forcefully around 2017–2018 — not coincidentally after Battlefront II’s release in November 2017.
Star Wars: Battlefront II — Fallout and Changes
At launch, Battlefront II drew massive backlash for its monetization model. The game’s loot boxes contained “Star Cards” that could boost performance of characters and ships — essentially creating a “pay-to-win” system. This model led to public outcry and regulatory scrutiny.
Belgium’s gaming regulator investigated whether the loot boxes violated gambling laws. For a while, EA argued they were not gambling since purchases were optional. But the Belgian Commission declared loot boxes illegal — although they did not immediately penalize Battlefront II because EA had suspended microtransactions temporarily.
Facing mounting criticism, EA announced removal of paid loot boxes and rework of the progression system. The new system limited loot boxes to cosmetic items only, and many progression items that had depended on loot boxes were converted into unlocks via gameplay.
By late 2019, EA had quietly removed daily crates and continued updates to remove or reduce loot box mechanics.
Even years later, the game is still cited as a case study in backlash against exploitative monetization.
Recent Developments & Trends (2024–2025)
- In May 2025, the EU’s Consumer Protection Cooperation (CPC) Network published guidelines on virtual currencies and microtransactions in video games. These guidelines demand price transparency, disclosure of real-world equivalents for virtual currencies, clearer pre-contract information, and consumer rights of withdrawal for unused virtual currency.
- Several EU countries have moved to tighter regulation of loot boxes in 2025, treating them more aggressively as gambling-like features.
- A new study found over 90% of social media ads for games with loot boxes failed to properly disclose their presence or abide by required transparency standards in the UK and South Korea.
- Research shows that industry self-regulation is widely failing. A study by 5Rights found that many games do not enforce their own standards around restricting access to loot boxes for children, disclosing probabilities, or granting refunds.
- The Court of Justice of the European Union (CJEU) is considering whether app store providers (like Apple) may be liable for games including loot boxes without proper licensing, especially in countries where loot boxes are banned (e.g. Belgium).
- In Brazil, a new law banning loot box sales to minors (under 18) has been signed, to take effect in March 2026.
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