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What are loot boxes and are they considered gambling?

Loot boxes have been around for quite some time and more and more people are raising concern whether the offering of loot boxes and the act of buying them should be considered gambling and be regulated like other gambling activities.

Some countries have made efforts to propose laws that aim to control the use of loot boxes in video games. While some argue that they are no different from betting apps and services you can find on Efirbet, it is better to understand what loot boxes are and how they work.

What are loot boxes?

Loot boxes are in-game items that a player can purchase. This offer is often used by most video games regardless of genre and platform: you can see them in mobile games, console games, PC games, shooters, and even the most casual of games.

Loot boxes offer special in-game items that the players can get for every purchase they make. While they may not get the said major reward in every draw, each purchase will grant them basic and uncommon game items.

How do loot boxes work?

Loot boxes are controlled by an algorithm called the random number generator or RNG. RNG is responsible for making sure that the prize’s distribution for each draw is random and according to the set percentage of probability for the loot box.

RNG is also responsible for making sure that a player cannot discern a pattern in the manner of giving rewards from loot boxes, as all results and awards are given in a random sequence.

However, there is still a set percent chance that the player can get the advertised rewards. For example, the jackpot item from the loot box may only be at a 0.05% chance of acquiring, while common items and rewards may be at a 70% chance draw rate.

By understanding this, a player would realize that loot boxes are not meant to give them the time or in-game rewards that they want, but to further tempt them to draw more and more loot boxes. 

Are loot boxes gambling?

In principle, one could say that the concept of loot boxes is greatly similar to the most basic forms of gambling. After all, it meets all the requirements of an activity to be categorized as gambling.

For an activity to be considered as gambling, there must be three elements present: a consideration, a chance, and a prize.

Consideration refers to a wager, or in other terms, a bet. This is an amount that a person places on the table in the hope of getting the promised prize or reward of the game or activity.

In loot boxes, this can refer to the real money needed to purchase them from the game, or the in-game credits that must be used. Players essentially wager their money or in-game credits to get loot boxes and draw from them.

Chance refers to the risk involved. In gambling, there is no certainty that people may land the win in every wager they make. In loot boxes, the same thing can be said.

There is only a certain percentage that the player can gain the “big reward” from the loot box. More often than not, the player will end up with basic rewards that are far from the jackpot item or prize.

As for the prize, loot boxes have a “big” item or reward that players can get. This is similar to a jackpot prize in gambling, such as the big win from a slot machine game, or the winnings from table games. Players wager their resources with the chance or risk involved in an attempt to obtain the prize.

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