Video game loot boxes are a very controversial issue, and the U.K.'s NHS says that they can cause harm and lead to youth gambling addiction.
Video game loot boxes are sometimes called loot crates, chests, or any of a plethora of names. By any name, they create a problem: loot boxes lead to youth gambling addiction, according to the U.K.'s National Health Service (NHS).
Loot boxes, which represented more than $30 billion in revenue in revenue in 2018, have proved to be controversial in recent years. Typically, they present a way for players to pay for cosmetic items. In effect, it's like pulling the handle on a slot machine - insert money, receive a random outfit, item, or set of items. But sometimes, they give gamers a way to gain an edge through powerful upgrades or gear that are not readily available to players who do not purchase them. These first appeared in the early 2000s (often in "free to play" games), and have been a subject of controversy since then. In recent years, gamers have criticized loot box systems overall - especially when they have a pay-to-win component as was seen with Electronic Arts' Star Wars Battlefront II and Forza Motorsport 7.
The NHS reports that video game loot boxes can cause an often-overlooked issue - youth gambling addiction. NHS mental health director Claire Murdoch calls for an end to loot boxes altogether because they are "setting kids up for addiction by teaching them to gamble" on loot box content. In response to this epidemic, the NHS has set up 14 gambling clinics across the country as well as a treatment center. While some might not consider it to be a big deal, U.K.'s Gambling Commission figures show that in that country alone, more than 400,000 people have a serious gambling problem and over 55,000 are children. But regulation is difficult, as those who sell loot boxes take advantage of a loophole that prevents them from being officially classified as gambling because there's no official way to monetize the items inside the boxes.
Make no mistake: video game loot boxes are a problem. One RuneScape player reportedly spent more than $62,000 on microtransactions in a single year, most likely tied to keys for treasure chests that provide players with items in exchange for hard-earned dollars - and in this case, those dollars belonged to his parents. Another player spent more than $13,000 on the aforementioned Star Wars Battlefront II loot boxes. The issue is so pervasive that United States Senator Josh Hawley(R) has proposed a blanket ban on video game loot boxes, which he says are "preying on user addiction." Some countries, like Belgium, have taken action against video game loot boxes. However, most remain complacent.
Video game loot boxes are a major issue. While the video game industry disagrees, lawmakers don't generally push legislation banning them if there isn't evidence that they are harmful. While some companies cap loot box spending - Jagex, for instance, caps monthly RuneScape purchases at an amount higher than most people's monthly income - this isn't enough to deal with the issue that they lead to youth gambling addiction. While selling expansion packs and other items for real-life money isn't a major issue, removing the gambling component found in loot box culture is imperative.
