Loot Box Legislation

According to the Parliament of Australia, since the Interactive Gambling Act 2001, "some government intervention" may be needed for in-game purchases and loot boxes. This issue is still up for debate and is determined on a case-by-case basis, but it seems to be gaining momentum. 

The key point seems to be about properly labeling loot boxes or in-app purchases, and making sure game rating reflects this. See Ratings for more information.

Brazil is considering banning loot boxes in the future. In June 2021, a group of NGOs and civilian organizations filed a lawsuit in Distrito Federal State to ban in-game loot boxes. In late 2022, the lawsuit was escalated to the federal level and is awaiting a ruling from the federal court — since gambling is prohibited in Brazil, the core question is if loot boxes can be considered a form of gambling.

The ban has support from the Public Ministry of Distrito Federal State, the court where the case was initially filed, as well as the Federal Psychology Council and other influential voices in academia and civil society.

On another front, there is a law proposal from 2019 to regulate loot boxes, demanding in-game disclosure of the drawing odds. The proposal has been on standby since 2019 due to the COVID-19 pandemic, but in March 2023, it was assigned to a technical congressional committee and is waiting for appraisal.

In 2020, the UK government launched an investigation into loot boxes and has yet to take a hard stance. However, this could indicate more regulation to come. The report with key findings here.

In May 2022, the Norwegian Consumer Counsel published a report severely criticizing loot boxes and pay-to-win schemes. Currently, 20 consumer groups from 18 European nations have backed the report and called for government action, which indicates that there may be regulations or more scrutiny in the years to come. Belgium and the Netherlands in particular have more regulations.The EU as a whole does not yet have unified regulations on loot boxes, however governmental bodies with the EU have been investigating it, with a comprehensive look in 2020.

According to legal research on Article 303, Para.1, Point 1 of the Indonesia Criminal Code (Electronic Information and Transaction), loot boxes can be considered a form of gambling. 

This is significant because Indonesia uses the Indonesian Game Rating System (IGRS) for its official video game content rating system, which has sweeping restrictions on gambling simulation (game mechanics that require real money or imitate real money), even for games rated 18+. There is still ongoing research, and the implementation of this law has remained a challenge. However, this may become a larger issue down the line.

Gacha mechanics are quite common in Japan, and there is no clear-cut legislation on loot box mechanics overall. However, in 2012, Japan banned multi-level loot box mechanics or "complete" loot boxes ( コンプリートガチャ（コンプガチャ ) in Japanese), which require players to keep making draws to acquire the proper set of equipment to progress.

Other forms of gacha or loot box mechanics are so far still accepted.

That being said, there are restrictions on card pools and drawing mechanics more broadly. For instance, Final Fantasy Brave Exvius Phantom War faced legal action for violating gacha rules, advertising pulls that were not available in the game. Square Enix had to release an apology following the incident.

The US currently does not have set regulations on loot boxes or in-game payment schemes. However, a bill was introduced to Congress in 2019 aiming to introduce restrictions on the practice. It is still in process, however, this indicates that there may be stricter regulations to come, or at the very least more debate. (Link to the bill here).

Canada currently does not have set regulations on loot boxes, but a class action lawsuit against EA regarding in-game payment schemes could create more stringent regulations down the line. (More info here).