Loot boxes and gambling: the blurred line between gaming and betting

Loot boxes are purchasable items in video games that contain randomised rewards. You pay real money, you don't know what you'll get, and the most valuable items are deliberately rare. If that sounds like gambling, you're not alone — researchers, regulators, and parents around the world are asking the same question. This guide explains what loot boxes are, how they relate to gambling, and why they're a growing concern for young people.

What are loot boxes?

A loot box is a virtual container in a video game that can be purchased with real money (or in-game currency, which itself is often bought with real money). When opened, it contains a random selection of items — character skins, weapons, power-ups, or cosmetic accessories.

The items vary in rarity. Common items are worth little. Rare items can be worth significant real-world money — some Counter-Strike weapon skins have sold for thousands of pounds on third-party marketplaces.

The mechanics are designed to be compelling: bright animations, suspenseful reveals, and "near-miss" effects that mirror slot machine psychology. You might not get the item you want, so you buy another box. And another.

Loot boxes appear in some of the world's most popular games, including FIFA/EA FC (player packs), Counter-Strike 2 (weapon cases), Overwatch 2, Fortnite, and many mobile games. Some of these games are rated suitable for children as young as 3.

Are loot boxes gambling?

This is the central debate — and the answer depends on who you ask and how narrowly you define gambling.

The case that they are

Loot boxes share three key features with gambling:

• You pay money. Real money is exchanged, even if it's laundered through in-game currency first.
• The outcome is random. You don't know what you'll get, and the odds of getting the best items are deliberately low.
• The prizes have value. In many games, items can be traded or sold for real money on secondary markets.

Research has consistently found a correlation between loot box spending and problem gambling behaviour, particularly among young people. A 2021 GambleAware-funded review found that the relationship is robust across multiple studies.

The case that they aren't

Under current UK law (the Gambling Act 2005), loot boxes are not classified as gambling because the prizes are not considered to have direct monetary value within the game's own system. The Gambling Commission's position is that where items obtained cannot be cashed out for real money through official channels, the activity falls outside their regulatory scope.

However, this ignores the thriving secondary markets where items are routinely traded for real money. It also ignores the psychological mechanisms — which are functionally identical to slot machines — regardless of the legal classification.

Where regulators stand

The regulatory landscape is fragmented. Belgium and the Netherlands have banned certain types of loot boxes. The UK government considered but ultimately declined to regulate them as gambling in its 2023 White Paper, instead recommending industry self-regulation and further research. Australia, Japan, and several other countries have implemented or are considering restrictions.

Loot boxes and young people

This is where the concern is most acute. The Gambling Commission's 2025 Young People and Gambling report found that 30% of 11-17 year olds gambled with their own money in the previous 12 months, and that unregulated gambling activities — which includes loot box purchasing and skin betting — rose from 15% to 18% in a single year.

Loot boxes are uniquely accessible to young people because they exist inside games that children already play, require no age verification (unlike regulated gambling), use in-game currency that obscures the real cost, and deploy psychological mechanisms specifically designed to encourage repeat purchasing.

The concern isn't just the money spent on loot boxes themselves — it's that loot boxes normalise the core mechanics of gambling (paying money for random outcomes) at an age when the brain's impulse control and risk assessment systems are still developing. Research suggests this may prime young people for gambling behaviour later in life, though the causal relationship is still being studied.

For the latest data on youth gambling in the UK, see our UK gambling statistics page.

Skin betting and secondary markets

Loot box items with real-world value have created an entire secondary gambling economy. "Skin betting" involves using virtual items (typically weapon skins from Counter-Strike 2) as currency on third-party gambling websites — roulette, coin flips, jackpot games — that operate almost entirely outside regulatory oversight.

These sites often have no age verification, no responsible gambling tools, and no regulatory accountability. They're particularly popular with younger players who may not have access to traditional gambling but do have game items worth real money.

The Gambling Commission has taken action against some skin betting operators, but the sites are typically offshore and difficult to enforce against.

What parents and carers can do

If you're concerned about a child's exposure to loot boxes or gambling-like mechanics in games:

• Check the game's monetisation model before allowing play. Websites like the PEGI ratings system and Common Sense Media list whether games contain in-app purchases and loot boxes.
• Disable in-app purchases on your child's device — both iOS and Android allow this through parental controls.
• Talk about it. Children who understand that loot boxes are designed to encourage spending are better equipped to resist the pull. Frame it as a fairness issue — "the game is designed to make you want to spend more."
• Monitor spending. Check app store purchase history and remove stored payment methods from accounts children can access.
• Set limits together. Rather than imposing a ban (which may backfire), agree on a spending limit for games and review it regularly.

The line between gaming and gambling is thinner than most people realise — and loot boxes sit right on it. Whether or not regulators classify them as gambling, the psychological mechanisms are the same. For more on the cognitive biases that make these mechanics effective, see our article on the gambler's fallacy, which explores how randomness tricks the brain.