A report by the Norwegian Consumer Council (NCC) calling gaming loot boxes “exploitative” has received the support of consumer groups in 18 European countries.
Loot boxes are video game features involving mystery boxes – which are sometimes earned through playing the game, sometimes purchased with real money – which can be opened for a random collection of in-game items such as weapons or cosmetic costumes. Some tools and extras improve your experience, but others are entirely worthless.
The NCC says gamers are being “manipulated” into spending large sums of money on the chests.
Many critics believe the boxes are a form of gambling since players don’t know what they have purchased until they’ve paid to open the boxes. The game publisher EA has previously compared loot boxes with children’s toys Hatchimals or Kinder Surprise.
Finn Myrstad, director of digital policy at the NCC, said: “The sale and presentation of loot boxes often involve exploiting consumers through predatory mechanisms, fostering addiction, targeting vulnerable consumer groups and more.”
The report is backed by 20 consumer groups in the 18 countries, which are all calling for governments to take action through regulation. This includes the European Consumer Organisation, which represents consumers in Europe – including those in the UK.
The report says it “appears obvious” that the systems used to convince people to part with their money in games are “predatory, manipulative, and exceedingly aggressive”.
This report adds that some of these problems are exacerbated because some of the games containing loot boxes are marketed to children.
Loot boxes linked to problem gambling
In April, research commissioned by the GambleAware charity was released. They compiled existing research to examine the strength of links between the in-game random prizes and gambling behaviour. It found:
- Of the 93% of children who play video games, up to 40% opened loot boxes
- About 5% of gamers generate half the entire revenue from the boxes
- Twelve out of 13 studies on the topic have established “unambiguous” connections to problem gambling behaviour
- Young men are the most likely to use loot boxes – with young age and lower education correlating with increased uses
The report said that many games use a “psychological nudge” to encourage people to buy loot boxes – such as the fear of missing out on limited-time items or special deals.
“Many gamers do ascribe discrete financial values to loot box contents – based on purchase or resale price – suggesting that many loot boxes meet existing criteria for gambling regulation,” the authors wrote.
Belgium banned loot boxes
In 2018, the Belgium Gaming Commission ruled that loot boxes violated gambling legislation. This led to the popular series Fifa dropping its virtual currency in the region. That effectively means loot boxes can only be earned by playing the game’s Ultimate Team mode.
The Netherlands then came to the same conclusion in 2019, hitting Fifa’s publisher EA with a €10m (£8.5m) fine. The decision was overturned in March 2022 when a court found that EA had not broken the law and rescinded the fine.
It said loot boxes in Fifa – which contain digital versions of actual football players who can then play for Fifa gamers’ teams – add an element of chance to the Ultimate Team mode, but they only form part of a broader game of skill.
A vice president of EA games defended loot boxes in 2019 by telling MPs they’re just like Kinder Eggs.
Kerry Hopkins said: “We do think the way that we have implemented these kinds of mechanics – and Fifa, of course, is our big one, our Fifa Ultimate Team and our packs – is actually quite ethical and quite fun, quite enjoyable to people.”
But the same year, Fortnite-maker Epic Games decided to let players in its hit video game see what was inside its llama loot boxes before deciding whether to buy them.
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