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Abstract

Loot boxes are an increasingly widespread monetization model in video games that utilize random chance when dispensing items. Their implementation and use may result in significant harm to consumers. At the same time, loot boxes confer many benefits to game companies and gamers that should factor into their regulation. These harms and benefits may not be apparent at first glance, so it is necessary to consider loot boxes contextually within their game and the broader community to have a proper holistic analysis of their effects. Their unique and varying design makes them a challenge to place within a single established regulatory regime. And while effective regulation for them may exist, feasible implementation may not be possible, and difficulties will arise when attempting to do so. While loot boxes may present a unique problem to regulators, a discussion considering their traits and attributes will serve to advance their effective regulation.

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