Loot box State of Play 2022: Regulatory and policy research developments

1 year 4 months ago

Loot boxes and other in-game microtransactions involving randomisation have been controversial for at least the past five years.

The latest research has presented conflicting evidence as to whether loot box purchasing is practically harmful to players' wellbeing. Some have called these products gambling-like due to conceptual similarities. Indeed, regulators in many countries tried to see whether existing gambling law can be applied to regulate loot boxes. However, after a slew of legal interpretations were published between 2017 and 2018 by the UK, Denmark, Belgium and the Netherlands, etc., not many substantial developments have occurred with loot box regulation.

This changed in 2022. In the past year, we saw both pre-existing regulatory positions being overturned or proven to be ineffective and new regulatory positions being adopted or proposed in many countries.

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Author
Leon Y. Xiao