Loot Boxes May Still Be Random, But Games That Offer Loot Boxes Will Be Clearly Labelled

North America's video game rating organization, the Entertainment Software Ratings Board ("ESRB") and Europe's equivalent entity, Pan European Game Information ("PEGI") have issued new labeling requirements for video games containing randomized in-game purchases, more commonly known as "loot boxes".¹ Loot boxes are bundles of randomized video game content that can typically be purchased for in-game currency or real money. Once purchased, loot boxes reward the player with virtual items and/or other in-game content, based on chance.

The ESRB now requires games that include randomized in-game purchases or loot boxes to be labeled with "In-Game Purchases (Includes Random Items)". PEGI now requires these games to be labeled with "Includes Paid Random Items". Examples of these two labels are displayed below: