Often vilified for their pay-to-win mechanics and predatory behavior, loot boxes have long provoked the ire of gamers. In recent years, the anger has spread. Now, with incredible fervor, politicians have joined the fray as they actively call for the regulation, or outright banning, of loot boxes. Loot boxes are more than a gaming nuisance: they are damaging to consumers and potentially dangerous for children.

While microtransactions are generally disliked, loot boxes stand out as especially heinous because of their randomness. Loot boxes contain no guaranteed items, meaning gamers are spending money on the chance they will get the desired item. This structure parallels gambling and has made loot boxes a special source of contention. In January of 2020, the U.K.'s National Health Service (NHS) declared that loot boxes contribute to youth gambling addiction. In a release on the NHS website, Claire Murdoch, mental health director, wrote that the randomized, risk vs reward structure of loot boxes sets "kids up for addiction by teaching them to gamble." The U.K. is not alone in pointing out the predatory dangers of microtransactions and loot boxes, with some countries passing laws to combat the problem.

Related: Video Game Loot Boxes Contribute to Rise In Child Gambling Problems

Even in the United States, lawmakers have proposed legislation to severely limit the use of microtransactions. In 2019, Senator Josh Hawley introduced a bill to congress that would ban loot boxes, and other micro-transactions, in games played by minors, but the bill has not progressed any further. Even so, action is being taken in the United States with the ESRB, an American rating's board, adding descriptors in their ratings to warn parents about loot boxes. Political resistance to microtransactions is growing around the world, and some countries have aggressively gone after them. Here is every country that has laws against loot boxes.

Japan's Laws About Loot Boxes

Japan was the first country to take regulatory action against loot boxes. In 2012, Japan's Consumer Affairs Agency declared complete gacha to be illegal. In their ruling, via Venturebeat, the agency said that complete gacha violated laws against “unjustifiable premiums and misleading representation.” Complete gacha, a monetization mechanic, is basically a loot box variant in which individuals pay to get some random reward. The contrast, and what makes it especially predatory, is that in order to progress in the game a set of rewards must be obtained, meaning players must continue to buy boxes, or whatever the package of rewards is called, until they acquire the proper set. Japan still allows for other types of microtransactions, but this particular model, once very popular in social games, has been outlawed.

China's Laws About Loot Boxes

Command and Conquer Rivals Microtransactions

In 2016, China passed a law that changed how loot boxes could operate when used in games played in the country. According to the law, games with loot boxes have to reveal not just the name of all possible rewards but the probability of receiving said rewards. The intent of the law was to make loot boxes more fair and transparent. Since then, China has added further restrictions and intensified the older ones. Now companies must give an exact drop rate for loot boxes items, giving players an idea of the maxim number of boxes they would need to be buy in order to ensure they get a certain item. Also, China has introduced caps on the number of loot boxes that can be bought in a certain day.

Netherlands' Laws About Loot Boxes

Overwatch Loot Box

In April of 2018, the Netherlands Gaming Authority conducted a study of 10 unnamed games, and concluded that four of the games were in violation of Netherlands laws concerning gambling. To be exact, the study said (via PC Gamer), "that the content of these loot boxes is determined by chance and that the prizes to be won can be traded outside of the game: the prizes have a market value." In order to sell such items in the Netherlands a license is required but given the current laws, no license can be given to game companies, so "these loot boxes (were) prohibited." The loot boxes used in the other games were deemed legal because they lack "market value." According to the study, those loot boxes whose prizes wouldn't be traded constituted a low risk for gambling addiction, being akin to "small-scale bingo." The marketable loot boxes though, those which are banned in the country, "have integral elements that are similar to slot machines."

Belgium's Laws About Loot Boxes

Loot Box Warning Message

Shortly after the Netherlands banned certain types of loot boxes, Belgium followed suit with even stricter regulations, declaring loot boxes to be a form of illegal gambling. Looking at various games, such as FIFA 18 and Overwatch, Belgium determined that the randomized risk/reward system innate to loot boxes is tantamount to gambling.

Related: The Video Game Loot Box Problem Goes Deeper Than Star Wars: Battlefront II

The decision had wide ranging implications. Some developers, like Valve, altered their games to remove loot boxes while Nintendo outright removed two of their mobile games, Animal Crossing: Pocket Camp and Fire Emblem Heroes, from sale in Belgium.

Honorable Mention: United Kingdom's Loot Box Stance

Battlefront II loot boxes

The House of Lords Gambling Committee, a committee within the U.K.'s lower house of parliament, issued a statement in July 2020 calling for legislative action against the sale of loot boxes in video games. The committee concluded that microtransactions akin to loot boxes constitute gambling and fall under the legislative body's jurisdiction. As of yet, no laws have been made but given the committee's recent recommendation, it is probably only a matter of time.

To date, only four countries have active laws regulating or banning the sell of loot boxes, but more are surely on the way. More and more countries have put together reports examining the problem, and the United States and the United Kingdom both have lawmakers calling for laws to be put into place. However, even if laws are passed, developers and publishers will likely still find loopholes. For instance, Bungie removed their version of loot boxes from Destiny, only to replace them with more predatory microtransactions. Time will tell how the political battle plays out but microtransactions aren't going anywhere anytime soon.

Next: You've Already Been Paying $70 For Video Games, But That Doesn't Make It OK

Source: NHSPC Gamer