Illegal video game loot boxes with transferable content on steam: a longitudinal study on their presence and non-compliance with and non-enforcement of gambling law

Leon Y. Xiao and Laura L. Henderson

International Gambling Studies, 2024, vol. 24, issue 3, 498-524

Abstract: Loot boxes are gambling-like mechanics in video games that can be bought with real-world money to obtain random rewards. Regulators in many countries have considered whether different loot box implementations fall within the existing legal definition of ‘gambling.’ Most countries’ regulators say that only loot boxes (i) players spent real-world money to purchase and (ii) provide randomized content (iii) that possesses real-world monetary value (e.g. be transferable between players) legally constitute ‘gambling.’ A comprehensive review of Valve’s Steam platform for PC games identified 35 games, including some of the most popular games with hundreds of thousands of concurrent players, that implement paid loot boxes with transferable content worth real-world money. These would likely fall afoul of current gambling laws in many countries. Contrary to previous statements published by gambling regulators promising enforcement, consumers, policymakers, and other stakeholders should be aware of the existence and popularity of these presumably illegal loot boxes and how gambling law has not actually been enforced against them. The situation remained unchanged one year later. This longitudinal perspective demonstrates a continued state of noncompliance by game companies and non-enforcement by gambling regulators that leaves consumers unprotected and at risk of encountering illegal content and experiencing harm.

Date: 2024
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DOI: 10.1080/14459795.2024.2390827

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International Gambling Studies is currently edited by Katie Donnelly, David Marshall, Bronwyn Stuart, Alex Blaszczynski and Jan McMillen

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