Are Loot Crates a Form of Online Gambling?

Loot crates provide random in-game rewards. They can be exchanged and sold on in-game or on open markets. We discuss whether they are a form of online gambling in the article below.

There are many games that rely on loot crates for their main source of revenue. This is not a new phenomenon, and in-game gifts have been around for some time. Yet the acquisition of random items in games has led to criticism that they encourage gambling. But how true is this, and where does the responsibility for it lie?

What are Loot Crates?

As a gamer, you will probably be well aware of loot crates. But to fully understand the situation, it pays to dig deeper into what they actually are. Essentially, a loot crate or box is a random deposit of an in-game asset. Generally, they contain skins and other bonuses to help you in the game or alter the appearance of items and avatars.

Loot boxes are found in the game itself. However, they can also be purchased. This is either with currency acquired within the game or for fiat currency outside. In fact, there are now many games that are free to play and make money solely from advertising and in-game purchases.

What is believed to link them to gambling is that the contents are random. It is this element of chance that many believe ties it to forms of gambling. As it also employs a type of in-game trade known as a microtransaction, people believe this is akin to paying for gambling services.

Self-Regulation From the Gambling Industry

Many believe this is an unfair burden to place on the US$510.19bn a yeargambling industry, particularly as they have worked hard to comply with laws and regulations provided by countries and states. In fact, within the gambling industry itself, there is a huge push to enforce safer gambling initiatives. This is both from the casinos themselves and others working around the industry, such as third parties.

One such party are Vegas Slots. They review and recommend online casinos to visitors. The best casinos are collected, then ranked based on several factors. One of these are Vegasslotsonline no deposit bonus websites, which allow people to play with making a transaction. All of this makes it easier for visitors to get the product that is right for them. However, it does not take long to scroll down the page and find lists of the safest casinos, as well as a responsible gambling section. By also providing education, the wider community is self-regulating.

This is endemic in the casino industry. Even many offshore operators, who do not have to comply with the rules and regulations set out by a country, choose to do so. They will often have a license or follow the Malta Gambling Authority, the Curacao Gaming Authority or the UK Gambling Commission. There are those that don’t, but in an environment so competitive, these are quickly left in the dust by those trying to operate at the top level.

What Are the Arguments for Loot Crates Encouraging Gambling?

One of the most in-depth studies into the link between gambling and loot crates came from the Spelinspektionen, which is the main gambling authority in Sweden. A study in 2023 saw that the number of those gambling in the 18 to 23 age category was rising. This also highlighted how boys of secondary school age were also starting to engage in problem gambling behaviours. The study then found a link between gambling and lottery-like elements, such as lootboxes, in video games.

Building on the report, further studies indicated that45% of young men who had sought problem gambling help had previously purchased lootboxes as teenagers. Around 62% of these bought their lootboxes before the age of 12, and a further 26% of these started gambling for money between the ages of 16.

In the United Kingdom, there have also been calls for age restrictions on loot boxes. This came from researchers from Bournemouth University. A study by Dr Ruijie Wang funded by GambleAware took 40,000 participants over a three eyar period. It showed that half of the loot box users displayed some level of gambling risk.

The Rise of Skin Gambling

One area in which this link is hard to ignore, and one that should probably bear the brunt of the blame, is skin gambling. For the uninitiated, a skin is a virtual cosmetic item that can change an appearance. For example, it may change the colour or texture of an outfit or weapon. They offer no advantages to the gameplay, but do allow for elements of customisation. As some are very rare, they also accrue a huge level of value. The most expensive one on the market at the moment, for example, is a case-hardened cover for a gun in CS:GO, worth over $1 million.

Skin gambling allows people to place a bet using their skins. They are handed in as a deposit, while an opponent also puts a skin forward. The winner of the bout would then take both skins. There is also the option to use skin gambling sites to bet on almost anything. Valuable skins are held as a credit, then their value can be wagered on the outcomes of eSports games.

It has nothing to do with the mainstream iGaming operators. There are a few tangible links between the main iGaming providers and skin gambling sites. Thus, lumping them in and asking them to deal with skin gambling is a futile effort. Legally, they have no affiliation with them, nor morally.

Oddly, the study mentioned above by Bournemouth University recommended stricter regulation for online casino games and gambling machines. Yet this should surely lie with the producers of videogames, who are placing this content in the titles themselves. It was recommended that age limits of 18 should be on these, but this is a warning that has been given for some time with little action.

It seems that a coordinated response from both the gaming and gambling sectors is required. While it is not the responsibility of gambling companies how developers choose to monetise titles, they could teach them a lot if legislation begins to tighten. These changes could come sooner than we think.