The Gambling Act 2005 and Loot Box Mechanics in Video Games

Abstract

This article analyses loot box mechanics in relation to the Gambling Act 2005. These mechanics provide ‘gamers’ with an opportunity to pay real money to open an in-game box and acquire in-game items such as weapons, armour and cosmetics. This practice can be caught as a licensable gambling activity under UK law and relevant stakeholders should note that it is a criminal offence to provide facilities for gambling without an operating licence. The dividing line between licensable and non-licensable mechanics is the element of convertibility, which in turn necessitates the distinction between ‘Closed Loop’ and ‘Cashing in’ Mechanics.