Video gaming or betting? Revealing the truth about in-game treasure chests

The virtual chests of rewards and other casino-style bonuses within your kids’ games might carry dangers you must not underestimate

13 Feb 2025
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5 mins. read

Traditionally, numerous video games adhered to a simple payment model: pay once, play indefinitely. However, nowadays, acquiring a game is merely the start. Simultaneously, contemporary gaming has increasingly adopted free-to-play systems, where gamers acquire the base game at no charge, but are consistently encouraged to spend on in-game items with the expectation that these extras will hasten their progress, offer competitive advantages, or enrich their gaming involvement.

Introducing loot boxes, skin betting, and other microtransactions that have turned into a contentious element of numerous video games. While the distinction between amusement and betting has blurred, the aftermath is becoming clearer. Previously disregarded as a specialized issue, sealed surprise boxes and other chance-based, casino-like rewards are now acknowledged as potential contributors to gambling addiction among adolescents and youngsters, a large portion of whom are oblivious to the fact they are engaging in gambling.

Meanwhile, the regulatory processes unfold at a leisurely pace. Numerous guardians, in turn, are frequently surprised and encounter difficulties in shielding their children and families from harm.

Gaming industry tactics

Loot boxes – somewhat akin to lottery scratch cards or digital Easter eggs concealing random toys – are arguably the most contentious form of in-game rewards. Prominent gaming franchises such as Candy Crush, Fortnite, FIFA, League of Legends, and Final Fantasy have likewise depended on earnings from these “mystery bags” and other microtransactions to offset development expenses. Estimates suggest that by the conclusion of 2025, loot boxes will yield over US$20 billion in revenue.

For those unfamiliar, here’s how loot boxes operate:

• a player uses actual currency to purchase a loot box, or receives it as a reward, without knowing the contents
• the content is randomized, turning the purchase into a gamble
• rare and highly coveted rewards are deliberately scarce, fostering repeated expenditures

At this juncture, the similarities to slot machines and roulette wheels become glaringly evident. Consequently, the blend of anticipation, reward, and sporadic reinforcement entice players to return, possibly fueling compulsive spending, particularly among young individuals. The situation is further exacerbated by the ubiquity of mobile devices and the absence of age verification mechanisms on numerous platforms.

Indeed, as casinos adhere to regulations and licensing protocols, multiple video games operate within a legal haze. For young participants, the threat of impulsive spending is particularly tangible. The repercussions can be substantial, including the cultivation of gambling habits and substantial financial losses, often without parental knowledge.

External gambling platforms and influencers: The current scenario

Loot boxes are not solely a concern within games – they have fostered a complete ancillary betting market. Third-party websites enable players to exchange or wager their in-game items, like weapon skins for certain immensely popular games, for real currency.

These platforms frequently function within a regulatory gray zone with minimal oversight. A significant number of them do not actively restrict minors from betting, even as the players who suffer monetary losses frequently have no course for complaint.

The linkage between gaming and betting is often further reinforced by social media figures who wield considerable influence over young viewers. Several may channel followers into wagering platforms, potentially garnering commissions based on user losses – occasionally without divulging that they were the proprietors of the platform.

Game continuation? Far from it

With the distinction between gaming and betting more indistinct than ever, regulators are taking heed, and the gaming sector may confront a reckoning down the line. At present, though, legislative measures and enforcement efforts remain largely out of reach, as gaming companies persist in refining their engagement and revenue-generation strategies.

Here’s a glance at legislative measures implemented by certain nations regarding loot boxes and other in-game additions:

How can guardians intervene?

The issue with loot boxes and other contentious in-game transactions is far from diminishing. What can you do as a parent to help reduce the underlying vulnerabilities?

• Engage in conversations with your children about betting mechanisms in games, considering that they likely do not realize they are participating in gambling-like conduct. They should comprehend the disparity between earning rewards within a game and using real funds to acquire random items.
• Monitor the games your child plays and their interaction with loot boxes or other microtransactions.
• Certain platforms enable you to establish spending limits and block or disable in-game transactions. Utilize these functionalities to avert unplanned or excessive expenditure on loot boxes or other microtransactions.
• Activate parental controls that can bar access to specific games or in-app purchases and/or permit you to set spending thresholds or approve any purchases.
• Contemplate surveillance of all their online activities, including the social media influencers they monitor.
• Set a positive example – divert your attention from screens and encourage offline pastimes to diminish your children’s screen time.

Loot boxes and gambling-like dynamics in video games are not merely fleeting trends, so remain cognizant of the threats. For youngsters, gaming should represent an exploration and learning opportunity, not a hazard endangering the well-being of their entire household.