Loot Boxes and Gaming Regulation: Where the Law Stands in 2026

Loot boxes are virtual containers in video games that give players a random selection of items such as characters, weapons, cosmetic “skins” or player cards. When bought with real money, they combine payment, chance and reward, the same ingredients as gambling. Since around 2017 they have been one of the most contested questions at the edge of gambling law. This guide explains how different countries have answered it as of October 2026.

The legal question

Most gambling laws define gambling roughly as staking something of value on an uncertain outcome to win a prize of value. With paid loot boxes, the stake and the chance are clear. The argument centres on the prize:

• If in-game items cannot be cashed out or sold, many legal systems say there is no prize of “money or money’s worth”, so no gambling.
• If items can be traded or sold for real money, through official or unofficial marketplaces, regulators are more likely to find a prize of value.

That is why outcomes differ so much between countries with similar concerns.

Country-by-country

Jurisdiction	Approach	Key development
Belgium	Paid loot boxes treated as gambling	Gaming Commission finding in 2018; several publishers changed or withdrew features
Netherlands	Not automatically gambling	Council of State overturned a regulator penalty against a major publisher on 9 March 2022
United Kingdom	Not gambling under the 2005 Act unless items have money’s worth; industry-led protections	Ukie principles published July 2023
Australia	Classification-based	Since 22 September 2024: paid loot boxes rated at least M; simulated gambling R18+
Brazil	Child-protection law	“Digital ECA” (Law 15.211/2025) bans loot boxes in games aimed at children and adolescents, in force 17 March 2026
United States	No federal rule	Consumer litigation and FTC action on in-game purchases by children

Belgium

In 2018 the Belgian Gaming Commission examined several popular games and concluded that their paid loot boxes were games of chance under Belgian law, requiring a licence. Publishers responded by disabling paid loot boxes for Belgian players or removing them. Academic research has since suggested that enforcement has been patchy, with paid random items still found in many games available in Belgium.

The Netherlands

The Dutch regulator (Ksa) also took action in 2018 and later pursued a major football game’s player packs. A lower court upheld a penalty. On 9 March 2022, the Administrative Jurisdiction Division of the Council of State, the highest administrative court, overturned it. The court found that the packs were part of a broader game of skill and were not, in themselves, a separate game of chance. The decision means loot boxes are not automatically gambling in the Netherlands, although the Dutch government has said it wants European-level action.

United Kingdom

A 2020 House of Lords committee recommended bringing loot boxes under gambling law. In July 2022 the government decided against legislation, preferring industry measures. In July 2023, industry body Ukie published principles for paid loot boxes, including:

• Technical controls to stop under-18s buying loot boxes without a parent’s or guardian’s consent
• Better age assurance and wider use of parental controls
• Clear probability disclosures
• Fair refund policies where controls fail
• A public information campaign

The government said it would review the measures after 12 months of implementation and keep legislation under review. As of October 2026, no statutory restriction has been introduced, and campaigners continue to argue that self-regulation is insufficient.

Australia

Instead of redefining gambling, Australia used its classification system. From 22 September 2024, newly classified games with paid loot boxes receive a minimum M rating (not recommended for under-15s). Games with simulated gambling, meaning casino-style play without cash prizes, receive R18+, legally restricted to adults.

Brazil

Brazil’s “Digital ECA”, a broad law protecting children and adolescents online, took effect on 17 March 2026. Among other duties for digital providers, it prohibits loot boxes in games aimed at children and adolescents. It is one of the clearest statutory restrictions anywhere. How “aimed at” minors is interpreted and enforced will be watched closely.

What the research says

Studies across several countries consistently find an association between loot-box spending and problem gambling severity, particularly among adolescents and young adults. The direction of cause is still debated. Loot boxes may draw people into gambling, people predisposed to gambling problems may be drawn to loot boxes, or both. Many loot boxes also share psychological features with slot machines: variable rewards, near-miss presentations and celebratory effects. See near-misses and game design.

The European dimension

The European Parliament has called for action on loot boxes and consumer protection in video games, and the European Commission has signalled that consumer-law reforms under discussion may address in-game currencies and manipulative design. As of October 2026, no EU-wide loot-box rule is in force. Consumer authorities have, however, used existing law on unfair practices to challenge how virtual currencies are presented to children.

Practical advice for families

• Set spending limits or require approval for purchases on every console, phone and platform account.
• Do not store payment cards on children’s accounts.
• Look for the “in-game purchases” or “includes random items” labels on age ratings.
• Talk about how loot boxes work and how probability favours the seller.

If you are concerned about a young person’s gaming or gambling, our guide to young people and gambling and the help directory are good places to start. Related rules on gambling-like products are covered in sweepstakes and social casinos and age verification requirements.