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Loot Boxes and Why Parents and Regulators Are Worried

It is more than a fun feature in the game.

childjustice.org.za781 words Reference piece — kept current, not tied to a news cycle

Loot Boxes and Why Parents and Regulators Are Worried — In-game spending has drawn regulators in a dozen countries, mostly on the question of whether it is gambling. **Tomer Gabel from Israel**, CC BY-SA 2.0 · via Wikimedia Commons

The South African positionSouth Africa has not classified loot boxes as gambling. Gambling here is regulated under the National Gambling Act 7 of 2004 and by provincial gambling boards; game content is age-classified by the Film and Publication Board, which rates for content rather than for spending mechanics. In practice that leaves the household controls described below as the only real limit.

Research has consistently linked the random rewards inside loot boxes – the virtual mystery prizes gamers can purchase in thousands of titles – to an increased risk of developing gambling-like harms, especially among children and adolescents.

A 2019 study of older adolescents found that those who spent money on loot boxes displayed more than twice the levels of problem gambling compared with their peers who did not.

Adolescent problem gamblers spent more than five times as much money on loot boxes as non-problem gamblers.[12]

The risks are highest when children are actually spending to buy or sell items from these virtual crates, rather than just opening the boxes in the game.

A 2020 national survey of adolescent gamers found a significant positive correlation between loot box purchasing or selling and problem gambling severity, even after accounting for other factors. The study also found that a higher proportion of at‑risk or problem gamblers among those who engaged with loot boxes in this way, compared with non‑engaged peers. [6]

These findings have led to concerns that loot boxes could be acting as a “gateway” to more serious gambling habits for young people. A 2022 evidence review by the Gambling Research Exchange Ontario (GREO) described loot boxes as a growing problem due to their potential for promoting gambling‑like behaviours in youth, citing risk–reward dynamics and uncertainty that mirror gambling

Regulators have so far stopped short of an outright ban on loot boxes, instead putting the onus on the industry to roll out self‑regulation alongside stronger age rating controls.

In 2023, the UK government opted to support industry‑led principles published by the UK Interactive Entertainment (UKie) trade body. These call on video game providers to “effectively restrict anyone under the age of 18 from acquiring a loot box, without the consent or knowledge of a parent, carer or guardian.”

But a 2025 study by the child online safety organisation 5Rights Foundation concluded that there had been “non‑existent” enforcement of these voluntary standards. The researchers could find no effective interventions that require explicit parental consent before a child can access loot boxes in the UK market. [11]

The situation is more advanced in some other jurisdictions.

Germany’s age rating board, the Unterhaltungssoftware Selbstkontrolle (USK), has already started factoring loot boxes into its assessment criteria for video games. Starting from 1 January 2023, the USK began considering loot boxes, other paid transactions, and online chat features in games as “possible online risks” when categorising titles by age rating. [9]

and much stricter proposals are in the pipeline.

In 2023, the Spanish government announced plans for a draft legislative package that would include a ban on minors accessing loot boxes, mandatory age verification (with biometric analysis possible), restrictions on loot box advertising, disclosures about win odds, and tools for gambling self‑exclusion. [9]

But even where real action looks likely, enforcement will remain a concern.

Which means the burden of protecting children from becoming problem gamblers through games will continue to fall to parents. Fortunately, there are effective settings available on major gaming platforms that parents can enable from home tonight.

On Apple devices, parents can use Screen Time to set iTunes and App Store purchase restrictions and configure Family Sharing to require prior approval for all App Store purchases. It's also possible to use the built-in access settings to restrict use at specific times of day.

Android devices offer parental control options through Google's Family Link service. Broad purchase and content restrictions can be combined with a PIN lock, plus it's possible to authorize or block in‑app purchases individually. Parents can also enable Family Link to keep an eye on what's being installed and used.

Consoles are not necessarily more straightforward: on PlayStation 4 or 5, each user has an independent wallet and spending limit, but these can be tied to a parent's credit card, or even a prepaid card, to avoid direct debit risks. Xbox Family Settings allow a family administrator to lock all spending or secure a spending pin.

Nintendo, for its part, offers a separate companion mobile app where parents can even lock individual game functions or video chat on their child's Switch.

These are practical tools that can be put into effect right away. All of which is important, as the most concrete protective recommendations from researchers and regulators focus on bolder action from industry and a better balance of default controls in games themselves. With most kids' exposure to loot boxes and loot box‑like mechanics still uncurtailed, parents are best advised to turn on what they can and expect gaps in the near term.