Are loot boxes a form of gambling?

Abstract

Gaming – a word that brings to mind two different concepts. The first is the age-old idea of gambling. A look through history shows us that even as far back as the first millennium BC, gambling houses in China were widespread and betting on animal fights were common. The other concept which might come to mind is that of video gaming. This is a far more recent development, emerging in the 1950s when the first video game was developed. While considered as separate and distinct industries, the two have overlapped somewhat in the past few years. The trending topic in relation to both of these topics is that of Loot Boxes. Ever since the release of the Electronic Arts Game Star Wars Battlefront II, parents have been concerned with the concept of the loot box. The items contained within are randomised and a player would not know if the contents is something which he already owns, something which is common or something which is rare. These can be classified as a type of microtransaction and are today, a staple in most games. Around the world, many parents have growing concerns regarding these loot boxes, many seeing them as a gateway to problem gambling. Mental health “setting kids up for addiction by teaching them to gamble on the content of these loot boxes.” This concern has been reflected by many governments such as the ones in Belgium and the Netherlands. This is contrasted by France whose government said that video games are exempt from gambling regulations as gain can rarely be monetised, should the winnings be monetised, it is then that regulations on gambling may apply. This dissertation aims to clarify some issues which have not been discussed before. Through a comparative legal analysis and of past judgements on the subject, the goal is to answer this dissertation’s research question: are loot boxes a form of gambling?