Leon Y. Xiao

beClaws.org

Loot boxes provide randomized rewards in video games; their purchase is linked to disordered gambling and they are present in approximately half of UK video games. The relative novelty of loot boxes means that regulators and policymakers in various jurisdictions are still deciding how to regulate them. The People's Republic of China (PRC) is the fi...

Loot boxes in video games are gambling-like mechanics that players buy to obtain randomised rewards of varying value. Loot boxes are conceptually and psychologically similar to gambling, and loot box expenditure is positively correlated with self-reported problem gambling severity. Citing consumer protection concerns, the Belgian Gaming Commission...

Loot boxes in video games are a form of in-game transactions with randomized elements. Concerns have been raised about loot boxes' similarities with gambling and their potential harms (e.g. overspending). Recognizing players' and parents' concerns, in mid-2020, the Entertainment Software Rating Board (ESRB) and PEGI (Pan-European Game Information)...

Purpose of Review Loot boxes are gambling-like monetisation mechanics in video games that are purchased for opportunities to obtain randomised in-game rewards. Gambling regulation is increasingly being informed by insights from public health. Despite conceptual similarities between loot boxes and gambling, there is much less international consensus...

Loot boxes are gambling-like products inside video games that can be bought with real-world money to obtain random rewards. They are widely available to children, and stakeholders are concerned about potential harms, e. g., overspending. UK advertising must disclose, if relevant, that a game contains (i) any in-game purchases and (ii) loot boxes sp...

Safer gambling messages are often used as a population-based harm prevention measure, and independently-designed messages (e.g., “Chances are you’re about to lose”) are increasingly replacing industry-designed slogans (e.g., “Take time to think”). One common type of safer gambling message warns people that they should expect to lose money by gambli...

Loot boxes are products inside video games that consumers can buy to obtain random rewards. They are prevalently implemented in contemporary video games, including in those deemed suitable for young children. Stakeholders (parents and policymakers) are concerned about their gambling-like nature and potential harms. An established line of research h...

Investigating the impacts of addiction policymaking following implementation is important. Effective policies should be considered for emulation elsewhere, whilst ineffective policies should be repealed. Zhou et al. (2024) reported how Mainland Chinese under-18s responded to the 2021 restrictions on their online videogame playtime, which were inten...

Loot boxes and other similar products inside video games can be purchased by players with real-world money to obtain random rewards. These mechanics have been deemed as gambling-like because players are betting money on unknown outcomes. Concerns have been raised about players spending too much money and the normalization of gambling-like behaviors...

Card packs are physical products providing random content. Companies rely on them to monetise physical trading or collectible card games. Loot boxes are equivalent digital products inside video games that can similarly be bought to obtain randomised rewards. Both products are psychologically similar to gambling because the player can ‘win’ by obtai...

Loot boxes are gambling-like products inside video games that players can purchase with real-world money to obtain random rewards. Stakeholders (e.g., players, parents, and policymakers) are concerned about their potential harms, e.g., overspending and normalizing gambling. Recognizing that previous industry self-regulation has failed to solve the...

Loot boxes are gambling-like mechanics in video games that can be bought with real-world money to obtain random rewards. Regulators in many countries have considered whether different loot box implementations fall within the existing legal definition of 'gambling.' Most countries' regulators say that only loot boxes (i) players spent real-world mon...

Investigating the impacts of addiction policymaking following implementation is important. Effective policies should be considered for emulation elsewhere, whilst ineffective policies should be repealed. Zhou et al. (2024) reported how Mainland Chinese under-18s responded to the 2021 restrictions on their online videogame playtime. However, a major...

Loot boxes and gacha are gambling-like products inside video games that players buy with real-world money to obtain random rewards. Parents and policymakers are concerned about players, especially children, experiencing harm. Mainland China requires companies to disclose the probabilities of obtaining different rewards to promote consumer protectio...

This is a response to the consultation on the draft law for the protection of minors in digital environments. A representative of the Dirección General de Ordenación del Juego (DGOJ) has confirmed to me on 18 June 2024 by email that the draft Article 5 will indeed only regulate Embedded-Embedded loot boxes. I therefore raise two concerns. Firstly,...

Loot boxes in video games that provide random rewards in exchange for real-world money have been identified as gambling-like and potentially harmful. Many stakeholders are concerned. One regulatory approach is to label games with loot boxes with a presence warning. This has been adopted by the age rating organizations of Germany (the USK), North Am...

Loot boxes can be bought with real-world money inside video games to obtain random items of varying value. Although these mechanics are gambling-like, they are widely available for purchase, including in children's games. Many countries are considering better regulation. The rapid regulatory and policy developments and proposals across the world in...

Loot boxes are gambling-like products inside video games that players can buy with real-world money to obtain random rewards. Concerns have been raised about potential financial and social harms resulting from overspending. These mechanics are generally not regulable under gambling law and are thus widely available, including to young children, par...

Loot boxes in video games that provide random rewards in exchange for real-world money have been identified as gambling-like and potentially harmful. Many stakeholders are concerned. One regulatory approach is to label games with loot boxes with a presence warning. This has been adopted by the age rating organizations of Germany (the USK), North Am...

The results of companies' compliance with the aforementioned requirements will be assessed through fieldwork in five regions (China, South Korea, Taiwan, the UK, and the Netherlands) examining the 100 highest-grossing games in each of those regions. The highest-grossing games in each region will be analysed in detail to identify loot boxes and any...

As to conclusions, the present study found that the vast majority of video game ads on social media platforms failed to disclose that the game being advertised offered in-game purchases and loot boxes in particular. Companies need to better understand their legal obligations when advertising video games offering loot boxes. Players and parents need...

Loot boxes are gambling-like products inside video games that can be bought with real-world money to obtain random rewards. They are widely available to children, and stakeholders are concerned about potential harms, e.g., overspending. UK advertising must disclose, if relevant, that a game contains (i) any in-game purchases and (ii) loot boxes spe...

Loot boxes are gambling-like products in video games that can be purchased with real-world money to obtain random rewards. Regulations have been imposed in some jurisdictions to attempt to address potential harms. Two recent policy studies assessed companies’ compliance (but more often, non-compliance) with those regulations. The first study found...

Loot boxes are gambling-like products found in video games that players can buy with real-world money to obtain random rewards. A positive correlation between loot box spending and problem gambling severity has been well-replicated. Some researchers recently argued that this observed positive correlation may be due to participants incorrectly inter...

Loot boxes are gambling-like products in video games that players can buy with real-world money to obtain random prizes. Many countries are concerned by their potential harms and are considering regulation. Industry self-regulation of companies’ own behavior is an alternative approach to direct government intervention through legislation. The self-...

In March 2022, the highest administrative court in the Netherlands, the Administrative Jurisdiction Division of the Council of State, found that loot boxes in the Ultimate Team Mode of the FIFA video games (FUT) published by Electronic Arts (EA) did not contravene Dutch gambling law, contrary to the Netherlands Gambling Authority's (Kansspelautorit...

My research has found that many popular video games did not comply with this regulatory requirement and failed to disclose loot box presence on the Google Play Store and the Apple App Store[5]. I subsequently identified a UK-based video game company (Hutch Games Ltd.) that infringed advertising regulation and complained to the Advertising Standards...

The article synthesises what we learned from reviewing the player activism of the “Maple refugee” incident and applies the insights to the European video game industry and commercial context. The Maple Refugee incident was perhaps one of the most disruptive video game incidents that occurred in South Korea in recent years. It saw tens of thousands...

Loot boxes are purchased in video games to obtain randomised rewards of varying value and are thus psychologically akin to gambling. Disclosing the probabilities of obtaining loot box rewards may reduce overspending, in a similar vein to related disclosure approaches in gambling. Presently, this consumer protection measure has been adopted as law o...

viewed by many as gambling-like and are prevalently implemented globally. Previous Western and international studies have consistently found loot box spending to be positively correlated with problem gambling. Previous Western studies presented mixed results as to the correlations between loot box purchasing and gambling-related risk factors, menta...

Governments around the world are considering regulatory measures to reduce young people’s time spent on digital devices, particularly video games. This raises the question of whether proposed regulatory measures would be effective. Since the early 2000s, the Chinese government has been enacting regulations to directly restrict young people’s playti...

Loot boxes are gambling-like products in video games that can be purchased with real-world money to obtain random rewards. Regulation has already been imposed (as either law or industry self-regulation) in some jurisdictions to address potential harms. Two policy studies were recently conducted to assess whether those regulations have been complied...

Loot boxes can be bought with real-world money inside video games to obtain random items of varying value. Although these mechanics are gambling-like, they are widely available for purchase, including in children’s games. Many countries are considering better regulation. The rapid regulatory and policy developments and proposals across the world in...

Presentation slides for the keynote presentation at SNSUS2023. Cite as: Xiao, L.Y. (2023, May 31). Regulating gambling-like loot boxes in video games: what has failed and where to next?. 13th Nordic SNSUS (Stiftelsen Nordiska Sällskapet för Upplysning om Spelberoende [Nordic Society Foundation for Information about Problem Gambling]) Conference: Th...

Paid loot boxes are video game monetisation methods that provide randomised rewards of varying value. Loot boxes are prevalent internationally: approximately 60% of the highest-grossing mobile games in ‘Western’ countries contain loot boxes (Zendle et al., 2020a), as do approximately 90% in the People’s Republic of China (PRC) (Xiao et al., 2021).1...

Fishing ‘mini-games’ are common in many contemporary video games. But what makes certain fishing-related video gaming elements into a ‘fishing mini-game’ per se and not merely a ‘fishing mechanic’? I answer this by examining how fishing elements vary from one implementation to another. Through analysing eight recent games with fishing, I identify a...

Loot boxes are gambling-like products in video games that players can buy with real-world money to obtain random prizes. Many countries are concerned by their potential harms and are considering regulation. Industry self-regulation of companies’ own behavior is an alternative approach to direct government intervention through legislation. The self-...

Academic research collaborations with the technology industry should be complementary to and, importantly, must not replace noncollaborative research that is independent from the industry (and, in particular, ‘adversarial research’ whose negative findings will likely operate against industry interests). Reflecting on the author's own research proje...

Loot boxes are gambling-like mechanics in video games that can be bought with real-world money in exchange for random rewards. Regulators in many countries have considered whether various implementations of loot boxes fall within the existing legal definition of ‘gambling.’ In short, most countries’ regulators are of the view that only loot boxes t...

Arguing whether loot boxes are gambling is not a useful exercise by this point in time. Psychological research was justified (at least initially) in conceptualising loot box harms as similar to gambling harms. However, it does not follow that loot box regulation must be viewed through a gambling lens. This similarity should no longer distract us fr...

Loot boxes are bought by players with real-world money to obtain random content inside video games. Loot boxes are viewed by many as gambling-like and are prevalently implemented globally. Previous Western and international studies have consistently found loot box spending to be positively correlated with problem gambling. Previous Western studies...

Loot boxes are gambling-like products found in video games that players can buy with real-world money to obtain random rewards. A positive correlation between loot box spending and problem gambling severity has been well-replicated. Some researchers recently argued that this observed positive correlation may be due to participants incorrectly inter...

This is a written response to the All-Party Group (APG) on Reducing Harm Related to Gambling’s ‘Inquiry on Public Health Approaches to Gambling-Related Harms in Northern Ireland’ launched in December 2022.

Loot boxes in video games are a form of in-game transactions with randomised elements. Concerns have been raised about loot boxes’ similarities with gambling and their potential harms (e.g., overspending). Recognising players’ and parents’ concerns, in mid-2020, the Entertainment Software Rating Board (ESRB) and PEGI (Pan-European Game Information)...

Open science is a movement that is transcending disciplines. As a legal scholar engaged in empirical research, I have adopted many good practices from other fields that have engaged with the need to enhance transparency, reproducibility and credibility at an earlier stage. I believe that open science should be a continued dialogue between disciplin...

Academic research collaborations with the industry should be complementary to and, importantly, must not replace non-collaborative research that is independent from the industry (and ‘adversarial research’ whose negative findings will likely operate against industry interests). Reflecting on my own research projects concerning companies’ compliance...

Objective: Online gambling has increased the accessibility and range of gambling products available to people all over the world. This trend has been particularly noticeable in the United Kingdom. Cryptocurrency-based gambling is a new, largely unregulated, way to gamble online, which uses mostly anonymous blockchain-based technologies, such as Bi...

Further to Mr Kelvin Plomer’s (Jagex) question regarding the compliance rate with industry self-regulation by “UK” companies at the 16 September 2022 DCMS loot box technical working group meeting, I have conducted a secondary analysis of the data generated for the study on UK compliance with Apple’s loot box probability disclosure requirement: Xiao...

Loot boxes are quasi-gambling virtual products in video games that provide randomised rewards of varying value. Previous studies in Western contexts have identified a positive correlation between loot box purchasing and problem gambling severity. A preregistered survey of People’s Republic of China (PRC) video game players ( N = 879) failed to repl...

Loot boxes in video games are gambling-like mechanics that players buy to obtain randomised rewards of varying value. Loot boxes are conceptually and psychologically similar to gambling, and loot box expenditure is positively correlated with self-reported problem gambling severity. Citing consumer protection concerns, the Belgian Gaming Commission...

This is a written response to the Spanish Ministry of Consumer Affairs’ (Ministerio de Consumo’s) consultation on the Bill seeking to regulate random reward mechanisms (e.g., ‘loot boxes’) in video games (Anteproyecto de Ley por el que se regulan los mecanismos aleatorios de recompense asociados a productos de software interactivo de ocio; the ‘Con...

Loot boxes are gambling-like products in videogame offering randomised rewards. Previous research has highlighted their potential harms. This essay emphasises instead the economic ‘benefits’ that loot boxes provide to players: specifically, that the monetisation model enhances the financial accessibility of videogames by making them cheaper (and, o...

Loot boxes are virtual items in video games that players purchase to obtain randomised rewards of varying value. Such randomised monetisation methods are prevalently implemented globally. Loot boxes are conceptually and structurally akin to gambling, and their purchase is positively correlated with problem gambling in Western countries. Given the p...

Blind boxes are novel, gambling-like physical products that consumers can buy to obtain randomized content. In January 2022, non-binding, advisory compliance guidelines recommending certain best practices when marketing blind boxes for sale were published in Shanghai, China. The relevant provisions, which include consumer protection and harm minimi...

Online gambling has increased the accessibility and range of gambling products available to people all over the world. This trend has been particularly noticeable in the UK. Cryptocurrency-based gambling is a new, largely unregulated, way to gamble online, which uses mostly anonymous blockchain-based technologies, such as Bitcoin. The present resea...

China imposed strict restrictions on young people's participation in videogaming from September 2021. Colder Carras et al.'s commentary (2021) referred to this policy as ‘draconian,’ i.e. , ‘excessively harsh and severe.’ However, any opinion on whether this policy is ‘draconian’ is a value judgment, and any judgment on its ‘effectiveness’ ought to...

Loot boxes are virtual products in video games that provide randomized rewards, and accordingly share structural similarities with gambling. Policymakers around the world are presently considering how best to regulate loot boxes. Current loot box consumer protection measures, such as requiring probability disclosures, have been inspired by similar...

Purpose of review: Loot boxes are gambling-like monetisation mechanics in video games that are purchased for opportunities to obtain randomised in-game rewards. Gambling regulation is increasingly being informed by insights from public health. Despite conceptual similarities between loot boxes and gambling, there is much less international consensu...

In March 2022, the highest administrative court in the Netherlands, the Administrative Jurisdiction Division of the Council of State, found that loot boxes in the Ultimate Team Mode of the FIFA video games (FUT) published by Electronic Arts (EA) did not contravene Dutch gambling law, contrary to the Netherlands Gambling Authority’s (Kansspelautorit...

Blind boxes are novel, gambling-like physical products that consumers can buy to obtain randomised content. In January 2022, non-binding, advisory compliance guidelines recommending certain best practices when marketing blind boxes for sale were published in Shanghai, China. The relevant provisions, which include consumer protection and harm minimi...

Paid ‘loot boxes’ are products in computer games that consumers can purchase to obtain randomised rewards [1]. Loot boxes are structurally similar to gambling [2, 3], and loot box expenditure is correlated with problem gambling severity [4, 5]. Zendle et al. [6] influentially reported that loot boxes are prevalently implemented in United Kingdom (U...

Loot boxes are virtual items in video games that offer the player randomised in-game rewards of uncertain in-game and real-world value. Paid loot boxes represent a lucrative and prevalent contemporary monetisation method that encourages repeat purchase through randomisation. The psychology literature has consistently reported a relationship between...

Paid loot boxes are now more commonly implemented in the highest-grossing UK iPhone games (which is reflective of other Western markets) than reported by Zendle et al. (2020). This is due to multiple reasons: games with loot boxes becoming more popular; some popular games subsequently introducing loot boxes; methodological factors around loot box i...

China imposed strict restrictions on young people’s participation in videogaming from September 2021. Colder Carras et al.’s commentary (2021) referred to this policy as ‘draconian,’ i.e., ‘excessively harsh and severe.’ However, any opinion on whether this policy is ‘draconian’ is a value judgment, and any judgment on its ‘effectiveness’ ought to...

Cite as: Xiao L.Y., Henderson L.L., Nielsen R.K.L., Grabarczyk P., & Newall P.W.S. (2021). Loot Boxes, Gambling-Like Mechanics in Video Games. In N. Lee (Ed.), Encyclopedia of Computer Graphics and Games. Springer. Loot boxes are mechanics often found in video games that provide the player with randomised virtual rewards. Some loot boxes can be pai...

Professional sports have in recent years become increasingly intertwined with gambling marketing, especially in countries such as Australia, Spain, and the UK. Even Formula 1 racing, which used to be closely associated with tobacco sponsorship, announced in 2021 an agreement to have an official betting sponsor. However, as happened previously with...

Professional sports have in recent years become increasingly intertwined with gambling marketing, especially in countries such as Australia, Spain, and the UK. Even Formula 1 racing, which used to be closely associated with tobacco sponsorship, announced in 2021 an agreement to have an official betting sponsor. However, as happened previously with...

Loot boxes are purchased to obtain randomised rewards in video games. These mechanics are frequently implemented, including in children’s games, and are psychologically akin to gambling. Emulating gambling harm reduction measures, disclosing the probabilities of obtaining loot box rewards is a consumer protection measure that may reduce overspendin...

Loot boxes are virtual items in video games that players purchase to obtain randomised rewards of varying value. Such randomised monetisation methods are prevalently implemented globally. Loot boxes are conceptually and structurally akin to gambling, and their purchase is positively correlated with problem gambling in Western countries. Given the p...

The National Press and Publication Administration (NPPA) of the People’s Republic of China published the Notice on Further Strictly Regulating and Effectively Preventing Online Video Gaming Addiction in Minors (the “2021 Notice”) on August 30, 2021. The 2021 Notice becomes effective on September 1, 2021. The 2021 Notice updates (and, where incompat...

Citation: Interactive Entertainment Law Review, 4(1), 27–47. Abstract: Loot boxes represent a popular and prevalent contemporary monetisation innovation in video games that offers the purchasing player-consumer, who always pays a set amount of money for each attempt, the opportunity to obtain randomised virtual rewards of uncertain in-game and real...

Loot boxes are quasi-gambling virtual products in video games that provide randomised rewards of varying value. Previous studies in Western contexts have identified a positive correlation between loot box purchasing and problem gambling. A preregistered survey of People’s Republic of China (PRC) video game players (N=879) largely failed to replicat...

Loot boxes in video games provide randomised rewards that bear structural similarities to gambling. Current loot box consumer protection measures, such as requiring probability disclosures, have been inspired by similar approaches in gambling. However, current loot box rewards are too complex for consumers to be meaningfully protected by probabilit...

King and Delfabbro (2019b) proposed the adoption of social responsibility measures to combat predatory monetisation in video games, such as loot boxes. This paper rectifies a game example mistakenly used by King and Delfabbro and provides further game examples to illustrate, critique and extend the proposed measures. This paper argues that the prop...

Paid loot boxes provide randomised rewards in video games; their use is linked to disordered gambling and they are present in approximately half of UK video games. The relative novelty of loot boxes means that regulators and policymakers in various jurisdictions are still deciding how to regulate them. The People’s Republic of China (PRC) is the fi...

The Supreme People’s Court (SPC) of the People’s Republic of China (PRC) promulgated its Guiding Opinion on Several Issues Concerning the Lawful and Proper Handling of Civil Cases Involving the Novel Coronavirus Pneumonia (COVID-19) Epidemic No. 2 (hereinafter, the ‘Guiding Opinion’) on 15 May 2020. Paragraph 9 of the Guiding Opinion declares that:...

A Letter to the Editor arguing that privateering is not legal under contemporary international law, in response to Cancian and Schwartz’s article ‘Unleash the Privateers!’ and Schwartz’s article ‘U.S. Privateering Is Legal,’ both published by the United States Naval Institute Proceedings in April 2020.

The Supreme People’s Court (SPC) of the People’s Republic of China (PRC) promulgated its Guiding Opinion on Several Issues Concerning the Lawful and Proper Handling of Civil Cases Involving the Novel Coronavirus Pneumonia (COVID-19) Epidemic No. 2 (hereinafter, the ‘Guiding Opinion’) on 15 May 2020. Paragraph 9 of the Guiding Opinion declares that:...

The more inclusive conceptualisation of the loot box transaction as a gamble adheres more to and does not adapt Griffiths’ definitional framework for gambling (1995, pp. 1–2), and explicitly identifies the participating parties of the gamble as the player purchasing the loot box and the video game company offering it for sale. The player is risking...

The three flaws of the ESRB and PEGI's introduction of the 'Includes Random Items' label are identified. This self-regulatory measure fails to provide sufficient information about the randomised in-game purchase mechanics; does not appropriately identify gambling as gambling and fails to guarantee minimum age ratings to protect young children; and...

Loot boxes (LBs) are a contemporary monetisation method in video games that relies on randomisation to encourage repeat purchase by player-consumers. The psychology literature has drawn tentative conclusions on LBs’ connection with gambling. Academics and regulators have examined whether or not LBs constitute gambling in law based on two conditions...

Cite as: Xiao, L.Y. (2021). Regulating Loot Boxes as Gambling? Towards a Combined Legal and Self-Regulatory Consumer Protection Approach. Interactive Entertainment Law Review, 4(1), 27–47. https://doi.org/10.4337/ielr.2021.01.02 Loot boxes are virtual items in video games which represent a popular contemporary monetisation innovation that offers th...

The General Administration of Press and Publication of the People’s Republic of China published the Notice on the Prevention of Online Gaming Addiction in Juveniles (the ‘Notice’) on 25 October 2019. The Notice imposes new legal obligations on online gaming service providers in order to ensure the protection of juveniles from online gaming addictio...

The General Administration of Press and Publication of the People’s Republic of China published the Notice on the Prevention of Online Gaming Addiction in Juveniles (the ‘Notice’) on 25 October 2019. The Notice imposes new legal obligations on online gaming service providers in order to ensure the protection of juveniles from online gaming addictio...

Updated 14 December 2022: Cite as: Xiao, L.Y. (2021). Regulating Loot Boxes as Gambling? Towards a Combined Legal and Self-Regulatory Consumer Protection Approach. Interactive Entertainment Law Review, 4(1), 27–47. https://doi.org/10.4337/ielr.2021.01.02 Loot boxes represent a popular and prevalent contemporary monetisation innovation in video game...

King and Delfabbro (2019) proposed the adoption of social responsibility measures to combat predatory monetisation in video games, such as loot boxes. This paper rectifies a game example mistakenly used by King and Delfabbro and provides further game examples to illustrate, critique and extend the proposed measures. This paper argues that the propo...

Updated 14 December 2022: Cite as: Xiao, L.Y. (2021). Regulating Loot Boxes as Gambling? Towards a Combined Legal and Self-Regulatory Consumer Protection Approach. Interactive Entertainment Law Review, 4(1), 27–47. https://doi.org/10.4337/ielr.2021.01.02 Loot boxes represent a popular and prevalent contemporary monetisation innovation in video game...

In this paper, I will identify the three core mechanics of Magic: The Gathering (Magic) by applying the technique of close reading for games as propounded by Bizzocchi and Tanenbaum. I will first explain my interpretation and application of the close reading technique. Then, after briefly introducing Magic, I will establish the three core mechanics...

Citation: Interactive Entertainment Law Review, 4(1), 27–47. https://doi.org/10.4337/ielr.2021.01.02 Updated 1 March 2021: This preprint has been accepted for publication after peer-review and should be cited as: Xiao, L.Y. (2021). Regulating Loot Boxes as Gambling? Towards a Combined Legal and Self-Regulatory Consumer Protection Approach [Working...

Influential parties in the video game industry, such as the Entertainment Software Rating Board (ESRB), an American self-regulatory organisation that assigns age and content ratings to video games, have cited and compared loot boxes to booster packs of trading card games and argued that loot boxes do not constitute gambling because booster packs of...