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Loot box (gaming)

A loot box, also known as a loot crate or treasure box, is a feature in video games that allows players to purchase randomized packs of virtual items, often using real money. The allure of loot boxes lies in the chance of obtaining rare or valuable items, but this practice has raised concerns about its similarities to gambling, particularly among young players. The origins of loot boxes can be traced back to collectible card games from the 1990s, where players bought sealed packs in hopes of finding valuable cards. The first video game to implement loot boxes was ZT Online in 2006, a move that quickly gained popularity among developers. While some games offer loot boxes that include items players can also earn through gameplay, the time investment required to obtain these items without purchasing loot boxes can be significant. As loot boxes became prevalent in both single-player and multiplayer games, backlash emerged, leading to legislative scrutiny and bans in certain countries, such as Belgium. The debate continues over whether loot boxes contribute to gambling addiction, particularly in children, highlighting the need for a balanced discourse on their impact in the gaming community.

Full Article

A loot box, also sometimes called a loot crate or treasure box, is a method by which virtual items are commonly distributed in video games. They refer to blindly purchasing packs of virtual items, hoping to secure rare or valuable pieces. In most cases, players purchase loot boxes with real money. The practice has been declared gambling and banned in some countries.

Overview

Though loot boxes are a recent phenomenon in the gaming world, the concept of randomly buying packs of game-related items of variable value can be traced back to collectible card games. In the 1990s, collectible card games like Magic: The Gathering and the Pokémon Trading Card Game rapidly grew in popularity. Part of the games' appeal was that cards were primarily purchased through sealed packs, each of which contained random cards of varying monetary value. This encouraged buyers to purchase numerous packs in hopes of finding rare cards.

As video games became a worldwide sensation, game developers quickly introduced random item drops into the games. Like card packs, the items dropped would be of various in-game values, encouraging users to play more to secure valuable items. In 2006, the Chinese Massively Multiplayer Online (MMO) game ZT Online was the first game to release virtual treasure boxes. Players could purchase these boxes, and the contents of the boxes were hidden before purchasing. In some cases, players were able to get in-game items cheaper than if they had been individually purchased. When opening a chest, players were shown all the valuable items the pack could contain. However, the odds of securing any of these high-value items were extremely low.

Once other game companies realized that the practice was extremely profitable, loot boxes quickly spread. Developers began to include them in mobile games, allowing users to directly purchase loot boxes from their phones. Puzzle & Dragons, one such mobile game, earned more than a billion dollars from such purchases. However, in Japan, lawmakers decided that loot boxes violated anti-gambling laws.

In 2010, game developer Valve made its highly successful shooting game Team Fortress 2 free to play. However, at the same time, they became the first Western developer to incorporate loot boxes into their product. Players earned loot boxes in this game through regular playing but were required to purchase keys to open them. Many sports games also added loot boxes, allowing players to unlock various athletes, coaches, and cosmetics from them.

By 2015 and onward, loot boxes were a common feature in both single-player and multiplayer games. In many cases, they only offered items that could theoretically be earned through playing the game alone. However, the items would commonly take tens of hours of game time to earn, making it impractical to play the game without paying additional money for boxes. In 2018, game developer EA decided to remove loot boxes from its game Star Wars Battlefront 2 after a massive outcry from the games' players. EA was also forced to remove loot boxes from its other titles in Belgium when the nation declared that the boxes were a form of gambling. 

Soon afterward, legislators in the United States pledged to look into loot boxes, threatening to make the practice illegal. Some accused the boxes of playing a role in an increased rate of gambling among young people. By 2023, Epic Games had settled claims in the United States and Canada but did not have to admit liability. According to Games Industry Biz in 2023, some countries were trying to ban loot boxes by enforcing consumer protection laws, requiring that specific information be disclosed, and demanding action from age-rating organizations. 

An article in the Fordham Intellectual Property, Media, & Entertainment Law Journal stated that, while loot boxes had remained legal in the United States by 2024, an Austrian court ruled in February 2024 that the FIFA pack, which is a kind of loot box within EA's FIFA games, is a form of illegal gambling. This prompted the filing of class action lawsuits across Austria. Some experts have contended that this was an important step in making loot boxes illegal throughout the world. However, in early 2026, the Austrian Supreme Court ruled that the FIFA packs were not considered gambling because of the skills the game requires for players to win matches. This ruling only applied to FIFA packs, with the court stating that the context of each game would be taken into account to determine whether its loot boxes would constitute gambling or not.

At the same time, in February 2026, New York's Attorney General Letitia James announced a lawsuit against Valve, arguing that their loot box model was a clear form of illegal gambling. The decision was made after an internal investigation into their games, namely Team Fortress 2, Dota 2, and Counter-Strike 2. James noted their loot box systems' visual similarities to traditional forms of gambling, like slot machines, as well as players' ability to resell their virtual items via Valve's Steam Community Market or other third-party sellers. The case could have major effects on loot box practices in the US.


Bibliography

Calvin-Forbes, Alex. "Austrian Supreme Court Rules That FIFA Loot Boxes Are Not Gambling." Games Industry Biz, 30 Jan. 2026, www.gamesindustry.biz/austrian-supreme-court-rules-that-fifa-loot-boxes-are-not-gambling. Accessed 3 Mar. 2026.

Freedman, Andrew. “What Are Loot Boxes? Gaming's Big New Problem, Explained.” Tom's Guide, 27 Feb. 2018, www.tomsguide.com/us/what-are-loot-boxes-microtransactions,news-26161.html. Accessed 3 Mar. 2026.

Gurwin, Gabe. “Electronic Arts Is in Legal Trouble Over Loot Boxes,” Digital Trends, 11 Sept. 2018, www.digitaltrends.com/gaming/electronic-arts-legal-trouble-loot-boxes/. Accessed 3 Mar. 2026.

Hoggins, Tom. “Video Game Loot Boxes to Be Investigated by US After Being Blamed for Rise in Young Gamblers,” The Telegraph, 28 Nov. 2018, www.telegraph.co.uk/gaming/news/loot-boxes-investigated-us-blamed-rise-young-gamblers/. Accessed 3 Mar. 2026.

Lanxon, Nate. “How 'Loot Boxes' Unlock Video Game Gambling Worries,” Bloomberg Businessweek, 15 Feb. 2019, www.bloomberg.com/news/articles/2019-02-15/how-loot-boxes-unlock-video-game-gambling-worries-quicktake. Accessed 3 Mar. 2026.

“'Loot Boxes' in Video Games Could Be Giving Kids a Gambling Problem,” The Conversation, thenextweb.com/syndication/2018/12/10/loot-boxes-in-video-games-could-be-giving-kids-a-gambling-problem. Accessed 3 Mar. 2026.

Orland, Kyle. “Fortnite Puts an End to Random Loot Box Purchases,” ArsTechnica, 28 Jan. 2019, arstechnica.com/gaming/2019/01/fortnite-puts-an-end-to-random-loot-boxes-purchases/. Accessed 3 Mar. 2026.

Pu, Benjamin. “What Are Loot Boxes? FTC Will Investigate $30B Video Game Industry,” NBC, 28 Nov. 2018, www.nbcnews.com/tech/tech-news/loot-boxes-gambling-video-games-ftc-look-it-n941256. Accessed 3 Mar. 2026.

Sobol, Jacob. "The Future of Loot Boxes in Video Games." Fordham Intellectual Property, Media, & Entertainment Law Journal, 16 Jan. 2024, www.fordhamiplj.org/2024/01/16/the-future-of-loot-boxes-in-video-games/. Accessed 3 Mar. 2026.

Valentine, Rebekah. "New York Attorney General Sues Valve, Alleging Its Loot Boxes Illegally Promote Gambling." IGN, 26 Feb. 2026, www.ign.com/articles/new-york-attorney-general-sues-valve-alleging-its-loot-boxes-illegally-promote-gambling. Accessed 3 Mar. 2026.

Wright, Steven. “The Evolution of Loot Boxes,” PC Gamer, 8 Dec. 2017, www.pcgamer.com/the-evolution-of-loot-boxes/. Accessed 3 Mar. 2026.

Xiao, Leon Y. "Loot Box State of Play 2023: A Global Update on Regulation." Games Industry Biz, 5 Dec. 2023, www.gamesindustry.biz/loot-box-state-of-play-2023-a-global-update-on-regulation. Accessed 3 Mar. 2026.

Full Article

A loot box, also sometimes called a loot crate or treasure box, is a method by which virtual items are commonly distributed in video games. They refer to blindly purchasing packs of virtual items, hoping to secure rare or valuable pieces. In most cases, players purchase loot boxes with real money. The practice has been declared gambling and banned in some countries.

Overview

Though loot boxes are a recent phenomenon in the gaming world, the concept of randomly buying packs of game-related items of variable value can be traced back to collectible card games. In the 1990s, collectible card games like Magic: The Gathering and the Pokémon Trading Card Game rapidly grew in popularity. Part of the games' appeal was that cards were primarily purchased through sealed packs, each of which contained random cards of varying monetary value. This encouraged buyers to purchase numerous packs in hopes of finding rare cards.

As video games became a worldwide sensation, game developers quickly introduced random item drops into the games. Like card packs, the items dropped would be of various in-game values, encouraging users to play more to secure valuable items. In 2006, the Chinese Massively Multiplayer Online (MMO) game ZT Online was the first game to release virtual treasure boxes. Players could purchase these boxes, and the contents of the boxes were hidden before purchasing. In some cases, players were able to get in-game items cheaper than if they had been individually purchased. When opening a chest, players were shown all the valuable items the pack could contain. However, the odds of securing any of these high-value items were extremely low.

Once other game companies realized that the practice was extremely profitable, loot boxes quickly spread. Developers began to include them in mobile games, allowing users to directly purchase loot boxes from their phones. Puzzle & Dragons, one such mobile game, earned more than a billion dollars from such purchases. However, in Japan, lawmakers decided that loot boxes violated anti-gambling laws.

In 2010, game developer Valve made its highly successful shooting game Team Fortress 2 free to play. However, at the same time, they became the first Western developer to incorporate loot boxes into their product. Players earned loot boxes in this game through regular playing but were required to purchase keys to open them. Many sports games also added loot boxes, allowing players to unlock various athletes, coaches, and cosmetics from them.

By 2015 and onward, loot boxes were a common feature in both single-player and multiplayer games. In many cases, they only offered items that could theoretically be earned through playing the game alone. However, the items would commonly take tens of hours of game time to earn, making it impractical to play the game without paying additional money for boxes. In 2018, game developer EA decided to remove loot boxes from its game Star Wars Battlefront 2 after a massive outcry from the games' players. EA was also forced to remove loot boxes from its other titles in Belgium when the nation declared that the boxes were a form of gambling. 

Soon afterward, legislators in the United States pledged to look into loot boxes, threatening to make the practice illegal. Some accused the boxes of playing a role in an increased rate of gambling among young people. By 2023, Epic Games had settled claims in the United States and Canada but did not have to admit liability. According to Games Industry Biz in 2023, some countries were trying to ban loot boxes by enforcing consumer protection laws, requiring that specific information be disclosed, and demanding action from age-rating organizations. 

An article in the Fordham Intellectual Property, Media, & Entertainment Law Journal stated that, while loot boxes had remained legal in the United States by 2024, an Austrian court ruled in February 2024 that the FIFA pack, which is a kind of loot box within EA's FIFA games, is a form of illegal gambling. This prompted the filing of class action lawsuits across Austria. Some experts have contended that this was an important step in making loot boxes illegal throughout the world. However, in early 2026, the Austrian Supreme Court ruled that the FIFA packs were not considered gambling because of the skills the game requires for players to win matches. This ruling only applied to FIFA packs, with the court stating that the context of each game would be taken into account to determine whether its loot boxes would constitute gambling or not.

At the same time, in February 2026, New York's Attorney General Letitia James announced a lawsuit against Valve, arguing that their loot box model was a clear form of illegal gambling. The decision was made after an internal investigation into their games, namely Team Fortress 2, Dota 2, and Counter-Strike 2. James noted their loot box systems' visual similarities to traditional forms of gambling, like slot machines, as well as players' ability to resell their virtual items via Valve's Steam Community Market or other third-party sellers. The case could have major effects on loot box practices in the US.


Bibliography

Calvin-Forbes, Alex. "Austrian Supreme Court Rules That FIFA Loot Boxes Are Not Gambling." Games Industry Biz, 30 Jan. 2026, www.gamesindustry.biz/austrian-supreme-court-rules-that-fifa-loot-boxes-are-not-gambling. Accessed 3 Mar. 2026.

Freedman, Andrew. “What Are Loot Boxes? Gaming's Big New Problem, Explained.” Tom's Guide, 27 Feb. 2018, www.tomsguide.com/us/what-are-loot-boxes-microtransactions,news-26161.html. Accessed 3 Mar. 2026.

Gurwin, Gabe. “Electronic Arts Is in Legal Trouble Over Loot Boxes,” Digital Trends, 11 Sept. 2018, www.digitaltrends.com/gaming/electronic-arts-legal-trouble-loot-boxes/. Accessed 3 Mar. 2026.

Hoggins, Tom. “Video Game Loot Boxes to Be Investigated by US After Being Blamed for Rise in Young Gamblers,” The Telegraph, 28 Nov. 2018, www.telegraph.co.uk/gaming/news/loot-boxes-investigated-us-blamed-rise-young-gamblers/. Accessed 3 Mar. 2026.

Lanxon, Nate. “How 'Loot Boxes' Unlock Video Game Gambling Worries,” Bloomberg Businessweek, 15 Feb. 2019, www.bloomberg.com/news/articles/2019-02-15/how-loot-boxes-unlock-video-game-gambling-worries-quicktake. Accessed 3 Mar. 2026.

“'Loot Boxes' in Video Games Could Be Giving Kids a Gambling Problem,” The Conversation, thenextweb.com/syndication/2018/12/10/loot-boxes-in-video-games-could-be-giving-kids-a-gambling-problem. Accessed 3 Mar. 2026.

Orland, Kyle. “Fortnite Puts an End to Random Loot Box Purchases,” ArsTechnica, 28 Jan. 2019, arstechnica.com/gaming/2019/01/fortnite-puts-an-end-to-random-loot-boxes-purchases/. Accessed 3 Mar. 2026.

Pu, Benjamin. “What Are Loot Boxes? FTC Will Investigate $30B Video Game Industry,” NBC, 28 Nov. 2018, www.nbcnews.com/tech/tech-news/loot-boxes-gambling-video-games-ftc-look-it-n941256. Accessed 3 Mar. 2026.

Sobol, Jacob. "The Future of Loot Boxes in Video Games." Fordham Intellectual Property, Media, & Entertainment Law Journal, 16 Jan. 2024, www.fordhamiplj.org/2024/01/16/the-future-of-loot-boxes-in-video-games/. Accessed 3 Mar. 2026.

Valentine, Rebekah. "New York Attorney General Sues Valve, Alleging Its Loot Boxes Illegally Promote Gambling." IGN, 26 Feb. 2026, www.ign.com/articles/new-york-attorney-general-sues-valve-alleging-its-loot-boxes-illegally-promote-gambling. Accessed 3 Mar. 2026.

Wright, Steven. “The Evolution of Loot Boxes,” PC Gamer, 8 Dec. 2017, www.pcgamer.com/the-evolution-of-loot-boxes/. Accessed 3 Mar. 2026.

Xiao, Leon Y. "Loot Box State of Play 2023: A Global Update on Regulation." Games Industry Biz, 5 Dec. 2023, www.gamesindustry.biz/loot-box-state-of-play-2023-a-global-update-on-regulation. Accessed 3 Mar. 2026.

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