What are Loot Boxes (and Are they Safe for Kids)?

Loot boxes are a controversial aspect of many modern video games, often likened to gambling due to their randomized rewards. As a parent, understanding the potential risks and implications of loot boxes is crucial before allowing your child to engage with them. 

What Are Loot Boxes?

Loot boxes are virtual mystery packages in video games that contain randomized in-game items. Players can purchase them with real or in-game currency, often without knowing what they will receive.

Some recent stats on loot boxes:

  • A recent report by UK Safer Internet Centre found that 70% of young people who play games online have made a purchase within a game, with 31% reporting that they do this at least once a week.

  • In 2021, a new label was added to gaming ratings to notify parents about ‘In-Game Purchases’. When the label says ‘Includes Random Paid Items’ this means the game has loot boxes.

  • Parent Zone’s report, ‘The Rip-Off Games’, found that more than three-quarters of children (76%) believe that online games try to make you spend as much money as possible – and almost half (49%) believe that online video games are only fun when you spend money.

Why Are loot boxes Controversial?

Many experts argue that loot boxes mirror gambling mechanics because they encourage spending money for uncertain rewards, and that children who play games with loot boxes are at risk for developing gambling related habits without knowing. This hypothesis is strengthened when you consider the addictive design of games, which means that the excitement of obtaining a rare item can lead to repeated purchases, creating compulsive spending habits. Finally, some games make loot boxes a core part of progression, tempting children to spend more money to stay competitive.

What Are the Potential Risks of loot boxes for Kids?

Loot boxes can lead to children developing unhealthy spending habits, by encouraging them to associate spending with pleasure, and supporting impulsive purchasing behaviors. Another risk is acclimatising your child to gambling-like systems, which build their expectation to react positively within a scenario where randomised risk can lead to the perception of rewards. None of these is behavior that is likely to support your child’s long-term well-being as they grow into an adult who wants to make healthy, sustainable decisions.

What Can Parents Do?

The first thing to think about doing to protect your children is to set their spending limits by using the parental controls to restrict in-game purchases. If they want to make in-game purchases they can do so after discussing it with you. Second, consider asking your child what they know about loot boxes from their friends or other games they’ve heard of. Let them explain what they’ve heard and ask them what they think about the idea of loot boxes that ask them for money even when they’re not getting something equal in return. Explain the risks associated with loot boxes and why they should be approached with caution.

In the long-term, sit with your child as they play and ask them to teach you why they’re doing what they’re doing in a game; after you’ve learned what they’re interested in, opt for games that further their interests (in sports, science, art, building things, or solving mysteries) that do not rely on loot boxes for progression or entertainment.


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