Unpacking Loot Boxes: Gaming Or Gambling?

The gaming industry is growing and, in parallel with it, several legal issues arise. In addition to other concerns (see this article), one of the hottest and most debated topics in the gaming sector is related to so-called "Loot Boxes". Loot Boxes have become a major source of income in the videogame industry but many countries are currently setting up specific committees to establish whether, for instance, certain kinds of Loot Boxes should be qualified as gambling and need to be regulated appropriately.

The question mainly arises from the fact that gambling is often considered an illegal activity in many countries, due to its potential harmful consequences. For instance, from an Italian jurisdiction perspective, Article 110 (4) of the Decree June 18, 1931, No. 733 (Testo Unico delle Leggi di Sicurezza Pubblica, as further amended) provides that running gambling business is illegal, unless specifically authorized by the public authorities.