Loot boxes give players randomized in-game rewards: you pay, use virtual currency, or earn access through play, then discover what is inside only after opening. That uncertainty matters because a player may spend repeatedly while trying for a particular item, and a virtual-currency price can make the real-money cost harder to judge. Loot boxes do not make every player overspend, and current evidence does not establish that they cause gambling problems. The practical risk is that the combination of an unknown reward, repeated purchase opportunities, and less-visible prices can make it harder to decide how much to spend.
What is a loot box, and how does it work?
A loot box is a game feature that awards an unknown item or set of items when opened. Games may call the same basic mechanic a pack, chest, crate, or another name. The player does not choose each reward in advance: the contents are randomized, and the possible outcomes can differ in usefulness or desirability. As the US Federal Trade Commission put it in its 2019 consumer guidance, “And you won’t know what you’re getting until you open it.”
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Access can be free, earned through gameplay, purchased directly, or obtained with virtual currency. Some currency is earned in the game; some can be bought with real money. A game may offer several of these routes at once. This means an open may have a real cost even when no money changes hands at the moment the player taps the button: the currency might have been bought earlier, or the player may have spent time earning it.
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Rewards range from cosmetic items—such as a different appearance for a character—to items that help progression or affect competition. That distinction matters when deciding whether a purchase is purely optional customization or could influence a player’s ability to advance or compete. Not every game uses loot boxes in the same way, and a game can combine them with other in-game purchases.
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Follow the purchase path, not just the “open” button
To understand what an opening costs, trace the full route from payment to reward. A player might buy a bundle of virtual currency, use part of that balance to open a box, and receive an item that cannot be selected in advance. If the currency bundle contains more than the amount needed for one opening, the leftover balance can also make it less obvious how much has been spent on a particular box. The relevant question is not only “How many tokens does this cost?” but “How much real money did those tokens cost, and how many openings does the balance buy?”
Why can loot boxes make spending harder to track?
A direct purchase exchanges a stated price for a known item. A loot box instead exchanges money or currency for a chance at one of several outcomes. If the player wants a specific item, one opening may not provide it. Further openings offer additional chances, but the player still does not control which reward arrives. That can make repeated spending feel like a continuation of the same attempt rather than a series of separate purchases.
Virtual currency adds another step between spending and opening. A player may see a token price in the game rather than a cash price, while the money was spent earlier on a currency bundle. The FTC has cautioned that children may find it difficult to keep track of spending after money is converted to game currency and may not understand their chances of getting desired items. This is a concern about how the transaction is presented and understood, not evidence that every child—or every adult—will lose track of spending.
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Uncertainty and repeated purchase prompts can encourage a player to keep trying for a desired reward. That is a possible decision-making risk, not a guaranteed effect or proof that a particular psychological mechanism operates in every game. The UK government’s 2022 response also discussed games’ retention strategies and analytics alongside random rewards, while noting how difficult it is to isolate loot boxes from other in-game purchase features. It would therefore be too strong to attribute every player’s spending pattern, or every reported harm, to loot boxes alone.
A useful check before opening
- Find the real-money price of the currency bundle, not just the token price shown beside the box.
- Check whether the game publishes the probability of receiving each item or item category.
- Ask whether the desired item can be bought directly, rather than obtained only through random openings.
- Consider whether the reward is cosmetic or could affect progression or competition.
- Decide on a spending limit before opening anything, and check whether an account or platform control can enforce it.
What do the UK figures say about how young people pay?
The UK Gambling Commission’s Young People and Gambling 2024 report asked surveyed young people who had paid to open loot boxes, packs, or chests how they had paid. The results show several routes, including both money and virtual currency:
| Payment route reported | Share of surveyed young purchasers |
|---|---|
| Virtual currency obtained without spending money | 58% |
| Virtual currency bought with money | 54% |
| Money from the young person’s own bank account | 51% |
| A gift card | 50% |
| Money from someone else’s bank account | 36% |
These are multiple-response results: a respondent could report more than one payment route, so the percentages are not mutually exclusive and do not add up to 100%. They describe the payment methods of surveyed young people who had paid to open such items. They do not say what the average person spent, how much any one purchase cost, or what share of all young people bought loot boxes. In particular, the 58% who reported using currency obtained without spending money should not be read as evidence that their openings had no other payment route or that all openings were free.
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Older UK estimates are not current spending measures
The UK government’s 2022 response recounted an industry association-commissioned survey in which 7% of video-game players said they had paid for a loot box during the 12 months to December 2020. The same response reported that paid loot boxes accounted for 10% of overall monthly player spending on games in that survey. It also cited PEGI’s finding that 2.5% of games rated from August 2020 to May 2022 received a loot-box descriptor. Those figures come from different measures and time periods; none is a current estimate of average spending or a direct comparison with the Gambling Commission’s 2024 survey of young people’s payment routes.
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1Clear out junk files and repair common Windows errors2Fix the driver behind crashes, sound loss and screen glitches3Repair Windows errors before they cause bigger problemsCurrent market-wide evidence on actual or average loot-box spending remains limited in the UK material. The Gambling Commission’s Advisory Board for Safer Gambling noted a lack of empirical data on actual spend and annual customer spend by age. A percentage describing how a surveyed group paid cannot fill that gap, and an older market figure should not be treated as a present-day spending forecast.
Are loot boxes gambling?
There is no single answer that applies to every game and every jurisdiction. UK government sources say loot boxes generally have not been covered by gambling regulation when their prizes do not normally have real-world monetary value outside the game. That is a description of the UK legal context, not a universal rule, and it does not settle the status of every product or transaction.
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The details can matter. If an item can be transferred or exchanged for money, that may affect the legal analysis. The rules also differ by jurisdiction, and the legal treatment can depend on the product’s design and how the relevant law defines gambling and prizes. Players and parents outside the UK should check the rules that apply where they live rather than assuming the UK approach governs them.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What is known about possible harm—and what is not?
The UK government has reported an association between buying loot boxes and problem gambling. It has also discussed possible financial, mental-health, and problem-gaming harms, with concerns that risks may be higher for children and young people. But the government explicitly noted that the evidence has not established whether the relationship is causal. An association does not show that loot-box purchases caused problem gambling; other factors, including other forms of in-game spending, may be involved.
The scale of the risk for any particular player is not established by the payment figures above. Those figures document reported payment routes, not symptoms, losses, or diagnoses. Nor do they show that all players who open boxes spend beyond their means. The evidence supports paying attention to how a game presents uncertain rewards and spending—not labeling every player’s behavior as harmful.
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A 2025 UK rapid evidence review focused on skins gambling, a related but distinct subject. Its discussion of links between loot-box engagement and later skin gambling should not be treated as proof that loot boxes cause gambling disorders. The review also states that its findings and recommendations do not represent UK government policy.
What protections and spending controls are available in the UK?
The UK Department for Culture, Media and Sport describes an industry-led guidance framework developed through a technical working group. The guidance calls for paid loot boxes to be unavailable to under-18s unless a parent or guardian enables access with their consent or knowledge. It also calls for accessible spending controls, clear probability disclosures, and refunds that are fair and clearly communicated.
This is UK guidance and policy, not a global legal standard or a guarantee that every game complies. The government notes that the guidance does not reach the whole UK games sector. The precise settings and controls available to a player depend on the game, platform, account, and location.
Steps parents can take
- Review age and account settings. Check the child’s game and platform accounts for age settings and any controls that limit purchases.
- Require approval where available. Turn on purchase approval or parental consent for transactions if the account or platform offers it.
- Set a spending limit. Use the game’s or platform’s spending controls where possible, and agree on a limit before a purchase is made.
- Check what is being bought. Look at the real-money cost, the currency conversion, the published odds, and whether the item has a direct-purchase alternative.
- Read the refund rules before relying on them. Find out what the game or platform says about refunds; the UK guidance calls for fair, clearly communicated refunds, but the policy and process can vary.
For an adult player, the same basic controls can help make a spending decision more deliberate: decide the limit in cash terms before buying currency, keep a record of purchases if the game’s balance obscures the total, and stop at the limit rather than treating a desired item as something that must be won. These are practical safeguards, not a promise that a game’s design or every platform setting will prevent overspending.
How to judge a loot-box system before spending
Use the same questions across games rather than assuming that every box works alike. A system is easier to assess when its real-money cost, odds, and alternatives are visible. If one of these is unclear, treat that as a reason to pause and find the information before purchasing.
- Payment route: Is the opening free through play, bought directly, or paid for with virtual currency? Can that currency also be earned, and what did the purchased balance cost in cash?
- Odds: Does the game disclose the chance of each possible reward clearly enough to understand before opening?
- Reward impact: Is the item cosmetic, or could it affect progression or competitive play?
- Alternative: Can the desired item be purchased directly, or is the player choosing among random outcomes?
- Controls and refunds: Are parental approval, spending caps, and refund terms accessible and understandable for the account and region?
These questions do not rank particular games, and disclosure alone does not make a purchase suitable for every player. They help separate the chance of receiving a desired item from the cost and consequences of trying. If the total cash cost, odds, or stopping point cannot be determined, the safest decision is to wait rather than purchase more currency first.
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