The UK Gambling Commission has long eyed loot boxes in video games as a regulatory concern, but has stopped short of calling them gambling unless items from the boxes can be traded for cash. Now, an official inquiry has found an association between the virtual rewards and real-world harm, leading to new calls for action.

21 September 2026

The Government Lays Out a Plan

In September 2020, the UK government launched a "call for evidence" to examine the impact of loot boxes, following reports of a potential link between the gaming feature and problem gambling, particularly among young people. The department of digital, culture, media and sport (DCMS) asked for submissions from a wide range of interested parties, setting a closing date of November 22, 2020.

A Common but Controversial Video Game Feature

Loot boxes are a common feature in many video games, defined by the Gambling Commission as an in-game element where players pay a set fee, either directly with cash or in-game tokens, to receive a random selection of virtual items. These can range from cosmetic changes to the appearance of game characters and environments to weapons, abilities, and upgrades that provide a competitive advantage in the on-screen action.

But critics say the random rewards generate feelings in the player similar to those triggered by betting and gambling machines. And there has been significant concern from regulators and lawmakers in the UK and Ireland and EU about the risks of exposure to problem gambling, particularly the targeting of children and young people.

Hundreds of thousands of responses reveal risks

The DCMS call for evidence collected over 32,000 responses from parents and gamers, as well as 50 submissions from industry representatives, academics and advocacy groups.

Analysis of the submissions found that loot boxes were viewed as causing harm, though no direct causal link could be established. Thirty-one percent of 11 to 16-year-olds had spent real money to open a loot box, according to a separate study cited in the report.

But DCMS also found that existing safeguards could protect most consumers. Loot boxes and their virtual contents cannot be traded for cash so do not fit the Gambling Commission’s definition of gambling. Parental controls can limit spending, and game publishers have made some progress to improve transparency.

Next Steps for the UK

Great Britain has no plans to completely ban loot boxes. But the DCMS report did recommend a number of actions to provide further protection. It called on major game platforms to introduce legally-binding age verification and approval of purchase by parents of minors before any credit card transaction. Spending controls, so players can set their own limits to how much they spend, and transparency of the odds involved in loot box rewards should also be standard.

The report also called for a group to be set up within a year to "consider and evaluate activity in this area, in order to inform potential future action, including legislative change." Little movement has been announced on that yet.

In the latest of a series of troubling findings related to gaming, The UK Gambling Commission revealed that over 93% of loot box-powered games are rated 'suitable for 12-year-olds or older' by game reviewers. With the global loot box market reaching $15 billion in 2020, the stakes for industry and society are extremely high. This story continues as regulators, lawmakers, researchers and developers grapple with an industry that thrives on consumer spending.