Considering the topic is political in nature, Honey’s Anime by no means is endorsing any political figure, party, or policy. When it comes to such issues involving politics, we want to be as neutral as possible to keep you readers properly informed. With loot boxes and in-game purchases a controversy to the point that it’s now requiring government intervention, we feel it’s our duty to help you get a general understanding of the situation.

So, why is there a necessity to regulate loot boxes other than the fact that (especially older) gamers hate them? In the case of some regions, it’s because they’re considered as a form of gambling based on their laws. When it comes to video games in general, the argument can be made that they require skill, and not chance like playing the lottery or getting a royal flush in poker. However, with the concept of loot boxes that can give you some awesome weapon or other piece of equipment, it becomes more of a game of chance as opposed to skill, and that fits the category of pre-existing gambling laws of whatever nation, state, or territory.

Going back to why Senator Hawley wants to regulate loot boxes, he feels that video game companies shouldn’t encourage video game addiction and make further profits off of it, especially as it pertains to children.

Though the EU as a whole has determined that they don’t consider loot boxes as a form of gambling, just like in the US (where gambling is not definitively illegal as a whole), each state still has their own respective sovereignty in regulating gambling (for example, gambling is illegal in New York, but still legal in the neighboring state of New Jersey), each country in the EU still has the authority to sanction gambling within its own borders. So in turn, where is gambling banned in and out of the EU? Gambling is banned in Belgium and Holland, but tightly regulated in South Korea and China, all for gambling related reasons. South Korea is ok with loot boxes, but their industry wants companies to disclaim the probabilities of its in-game prizes to determine whether or not upon releasing it. As it pertains to China, Blizzard with Overwatch has found ways around the law by still allowing players to purchase in-game currency and with that currency, they can buy loot boxes since it is not bought with real life currency.

There have been rumors floating around on the net that loot boxes are banned in Japan, but it’s not true. While some nations view them as gambling, and while gambling is illegal in Japan, it’s illegal under the conditions that it’s for money or anything of monetary values such a car or house. Like in pachinko where you trade your pachinko balls for non-monetary prizes (such as cup ramen, soap, and shampoo), loot boxes are also not monetary in terms of rewards so in that sense, loot boxes are legal in Japan. Australia’s government has determined loot boxes to be psychologically similar to gambling under their studies and has encouraged the industry to put a warning label.