Are loot boxes illegal?

Are Loot Boxes Legal? Today, with a few exceptions, most forms of loot boxes remain legal and unregulated worldwide. However, proponents of loot box regulation argue that the chance and rarity mechanics make loot boxes akin to gambling and constitute predatory practices toward minors.
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In what countries are loot boxes illegal?

The Netherlands and Belgium have both issued regulations under their gaming and betting laws, imposing fines, sales bans, and even criminal charges. China so far has imposed the most significant loot box regulations.
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How are loot boxes not gambling?

The government believed that, although loot boxes had some similarities with gambling, an important distinction was the ability to 'cash out rewards'. The government said that a loot box prize 'does not normally have real world monetary value outside of the game'.”
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Why are loot boxes unethical?

The source of controversy here is that buying a loot box means paying for a randomized reward of variable value. This in turn results in loot boxes being likened to gambling, and to related claims, such as that loot boxes are addictive and, in a sense, similar to slot machines.
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Are loot boxes illegal in UK?

Concerns have been raised about the structural and psychological similarities between loot boxes and gambling and that they could encourage children to gamble. The Gambling Commission has said the Gambling Act 2005 doesn't cover loot boxes and it therefore cannot use any of its regulatory powers to take action.
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Are Loot Crates A Form Of Gambling - Will They Become Illegal?

Is loot box legal?

Are Loot Boxes Legal? Today, with a few exceptions, most forms of loot boxes remain legal and unregulated worldwide. However, proponents of loot box regulation argue that the chance and rarity mechanics make loot boxes akin to gambling and constitute predatory practices toward minors.
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Are loot boxes banned in China?

Furthermore games will be no longer allowed to offer probability-based lucky draw features to minors – ending the loot boxes and gacha monetisation seen in hundreds of games – and publishers will have to enforce limits on how much money can be spent in game and will be banned from enabling the auction or speculation of ...
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What's wrong with lootboxes?

Loot Box Spending May Lead To Problem Gambling

Emerging research suggests that loot box purchases and similar gambling behavior among children or teens can lead to problem gambling later in life. These activities seem fun and harmless, potentially normalizing risky behavior.
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Is Candy Crush considered gambling?

As politicians continue the battle against gambling addiction by regulating casinos and online poker, a new mobile gaming addiction has emerged through free-to-play games.
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Why are loot boxes addictive?

Loot Boxes are Designed to be Addictive

In this regard, they are similar to slot machines and other gambling products because players risk money for a chance of getting a reward. Loot boxes affect your brain similar to how slot machines do (Whyte, 2019): Prizes are distributed randomly.
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Are loot boxes predatory?

With the prevalence of the gaming industry, comes predatory practices designed to get as much money as possible. Some of these practices include loot boxes and gacha. Loot boxes and gacha both involve people spending money to get cosmetics, special abilities, or characters.
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Why do loot boxes exist?

Loot boxes are considered part of the compulsion loop of game design to keep players invested in a game. Such compulsion loops are known to contribute towards video game addiction and are frequently compared to gambling addiction.
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How do loot boxes make money?

Loot boxes that players have to purchase with real-world money to engage with are implemented by companies as monetisation methods in video games, known as 'microtransactions,' which represent an alternative, or complementary, business model to selling copies of the software or providing subscription-based services [10 ...
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Why are loot boxes not gambling?

Where in-game items obtained via loot boxes are confined for use within the game and cannot be cashed out it is unlikely to be caught as a licensable gambling activity. In those cases, our legal powers would not allow us to step in.
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Do games still use loot boxes?

Loot boxes are still here with us in 2023, and some countries are finally catching up with regulation.
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Why did the Netherlands ban loot boxes?

Sandra Molenaar, the CEO of Consumentenbond, the consumer association for the Netherlands, called loot boxes a “deceptive design” that “must be banned”. “Games for minors may not offer loot boxes for real money and may not contain 'pay-to-win mechanisms'.
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What is the Candy Crush controversy?

In part because of its simplicity, the game enjoys great popularity. Perhaps it's a bit too popular. Candy Crush has been criticized for having a high addiction potential—and maybe not just for its players.
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Is Candy Crush luck or skill?

Skill is hugely important. Candy Crush is a game of skill. The specific skills required of the user are relatively straightforward in principle, but difficult to implement in practice.
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How much money does Candy Crush make a day?

A strong continuation followed, with the game securing $1.19 billion in revenue in 2020, securing its position as the third highest-grossing mobile game that year. An astounding report from 2018 revealed that Candy Crush Saga was amassing an astonishing $4.2 million per day.
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Why did Blizzard remove Lootboxes?

The paid-for loot boxes were introduced to the game in 2016. The loot boxes, also found in games such as Fifa and Star Wars Battlefront, have faced criticism from fans and politicians around the world with some countries banning them saying they are a type of gambling.
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Who started Lootboxes?

Loot boxes are typically earned intermittently through in-game achievements, or can be bought through microtransactions. Loot boxes were first introduced in the Korean game MapleStory in 2003.
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How are loot boxes similar to gambling?

The prizes may be items such as virtual cosmetics, character skins, weapons, or other enhancements. The specific contents of a loot box are usually unknown until it is opened, adding an element of surprise and anticipation. These feelings are akin to those experienced when gambling.
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Why is China so strict on gaming?

Responding to public concern over the growing amount of time Chinese youth spent playing video games, the government imposed a slate of restrictions, including a rule requiring developers to limit minors' playing time.
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Is it illegal to buy stuff from China?

No, it is not illegal to order from China unless your country has some regulations against it. Authentic sources must be utilized to order from China.
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Is China banning gacha?

It looks like Chinese authorities have scrapped plans to further tighten the regulations around video games with in-game purchases and gacha elements, which were originally proposed in December 2023 and immediately caused the share prices of gaming giants like Tencent and NetEase to plunge.
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