Most parents would never take their child into a casino and encourage them to gamble. Yet millions of children are being exposed to gambling-like activities through video games every day.
Many popular games now include “loot boxes” virtual packages purchased with real money that provide random rewards. Players pay first and discover later whether they received something valuable. The concept closely resembles lottery tickets and slot machines.
Researchers have found troubling connections between loot boxes and gambling behavior. One major study found that young people who purchased loot boxes were 11.4 times more likely to experience problem gambling than those who did not. Other studies have found significant links between loot box spending and gambling problems among adolescents.
Children are particularly vulnerable because their brains are still developing the ability to assess risk and control impulses. These systems are designed around the same “variable reward” principles used in casinos, encouraging players to keep spending money in pursuit of the next reward.
The issue has become serious enough to attract government scrutiny. In 2025, the Federal Trade Commission fined the developer of the popular game Genshin Impact $20 million and prohibited the sale of loot boxes to children under 16 without parental consent. Earlier this year, New York state sued Valve Corporation, alleging that its loot box system constituted illegal gambling and exposed minors to harmful gambling-like behavior.
Video games themselves are not the problem. Millions of families enjoy them responsibly. The concern is that gambling-style mechanics are increasingly being incorporated into products marketed directly to children.
Parents deserve transparency. Children deserve protection. And lawmakers should carefully examine whether current laws adequately protect young people from gambling-like systems disguised as entertainment.