What are loot boxes? Gaming, gambling and the risks we need to know


Victoria McCann BA, MSc
Page Editorially Reviewed on
Last Updated

Loot boxes have become a part of many video games. You can buy them or earn them through play, and open them for a random reward. For most players, loot boxes are just a fun feature, but the pattern of buying and opening can become hard to stop.

The mechanics behind loot boxes borrow directly from gambling design. While most loot box purchases are harmless, the line between gaming and gambling isn’t as clear cut as we might like to believe. Most explanations cover how loot boxes make money for developers, or jump straight to warnings about gambling. 

Few explain why opening a loot crate feels so exciting in the first place.

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What is a loot box?

A loot box is a virtual item in a video game that you buy or earn through play. The contents are a mystery until you open it, but they include a random selection of in-game rewards, anything from a rare weapon to a cosmetic outfit.

Loot boxes go by other names too, including loot crates or mystery boxes, but the idea is the same. You pay with real money or in-game currency, and chance decides what you receive.


Are loot boxes gambling?

Loot boxes share several features with gambling. You pay for an outcome you can’t predict, and the reward is randomised by design.

Gambling-like features have increasingly appeared across different digital contexts in recent years. Video games are arguably the clearest example of that trend, particularly through the growth of loot boxes.

One study looked at young adults aged 16 to 24 and their gambling habits. People who bought loot boxes with their own money were four and a half times more likely to have a gambling problem. That held even after researchers allowed for other factors, like impulsivity and background.

In the UK, loot boxes are not currently classed as gambling under the law. But government reviewers have raised concerns about the blurred line between gaming and gambling.

Two committees, the Digital, Culture, Media and Sport Committee and a House of Lords committee, have called for loot boxes to be brought under the Gambling Act.

  • The psychology of loot boxes

    Loot boxes work the way they do because of something called ‘variable ratio reinforcement’. It’s the same principle that makes fruit machines so hard to walk away from.

    With a fixed reward, like a wage at the end of the month, you know when the payoff is coming. With a variable reward, you don’t. You might get something valuable on your first try, or your fiftieth. That uncertainty is what keeps you pulling the lever, or opening the next box.

    This kind of unpredictable reward changes how the brain responds. The same dopamine pathways involved in drug addiction are activated by the anticipation of a reward, not just by receiving one. Unpredictable rewards, like those inside loot boxes, trigger this response more strongly than predictable ones.

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Anonymous, Castle Craig patient (21/06/21)

What is skins betting, and why does it matter?

The same psychology often carries over elsewhere when a game drops loot boxes, and skins betting is one of the clearest examples.

Skins are cosmetic items, like a new look for a character or a weapon, that some games let you earn or buy. The problem starts when skins gain real money value and get traded on markets outside the game itself.

From there, some websites let people bet skins on match results or games of chance, much like betting real money. These sites usually sit outside gambling regulation entirely, so the usual safeguards, like age checks or spending limits, don’t apply. Most video gamers are young people, which makes this lack of oversight one of the more serious risks around gaming loot right now.


Who is most at risk from loot box spending?

Younger people are generally more vulnerable to loot box spending. Their brains are still developing the impulse control that helps adults resist reward-driven urges, and gaming is often a bigger part of daily life at that age.

But age isn’t the whole story. When researchers adjusted loot box spending against income rather than looking at money spent, a clearer pattern appeared. People on the lower incomes spent the larger share of what they earned. Once spending was measured this way, the pattern held most strongly for younger people and lower earners specifically.


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When does loot box spending become a problem?

It’s often harder to spot a problem in yourself than in someone else, but feeling unsure about your own spending is common.

Gambling charities describe a consistent set of warning signs, whether the money goes on a slot machine or a loot box.

  • Spending more money or time than you meant to
  • Feeling anxious, guilty, or irritable when you can’t access the game or make a purchase
  • Hiding how much you’ve spent from people close to you
  • Chasing a loss by spending more to try to make up for it
  • Struggling to concentrate on anything else because you’re thinking about the next purchase

The clinical criteria for gambling disorder describe a similar pattern. They cover a loss of control over the behaviour, and the behaviour taking priority over other parts of life. Both usually need to be present for at least 12 months before a diagnosis is made.


How to get help with video game addiction or gambling

If you think gaming, loot box purchasing, or other gambling-related behaviour has become a problem for you or someone else, there are several places to start.

Your GP can talk through what you’re experiencing and refer you on if needed. GamCare and the National Gambling Helpline offer free, confidential support for gambling problems, including ones that start with gaming. For more established patterns, residential treatment is another option.

Find out more about gambling addiction and gambling rehab treatment at Castle Craig.

Deciding to get help usually happens gradually, and it’s fine if it takes more than one conversation to get there. Castle Craig has treated gambling-related conditions for decades, and that clinical experience shapes our advice and every part of our treatment.

  • If someone in your life is spending too much on loot boxes

    If someone in your life is spending more than feels right on loot boxes, raising it can feel hard. It doesn’t look like traditional gambling, because there’s no casino, only a game they already play every day. That can make it easy for the person to dismiss your concern, even to themselves.

    Try to raise it without turning it into a confrontation. Talk about what you’ve noticed rather than what you’ve concluded, and pick a calm time to bring it up.

    Our approach to treatment includes family therapy sessions. They are for anyone affected by someone else’s gambling or gaming, not just the person in addiction treatment. If you’d like to talk to us before deciding anything, our team can answer all your questions.


Video Gaming – Lootboxes

Frequently asked questions about loot boxes

  • What are the loot box gambling laws in the UK?

    Loot boxes are not currently classed as gambling under the Gambling Act 2005. The government reviewed the evidence, and in its 2022 response, decided not to extend the Act to cover loot boxes. However, it did recommend stronger protections for children and young people. That position is under ongoing review, and pressure to reclassify loot boxes as a form of gambling hasn’t gone away.

  • Are loot boxes banned anywhere?

    Yes. Belgium and the Netherlands have taken regulatory action against loot boxes with real-money elements. China requires games to disclose the odds of receiving each item in a loot box. The UK has not taken either approach so far.

  • What should I do if loot box spending has caused serious harm?

    If spending on loot boxes or skins betting has led to serious financial or emotional harm, for you or someone in your life, GamCare’s helpline offers free, confidential support. If you’d like to talk through what treatment could look like, Castle Craig’s team is also here to help.



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