Analyst: Poland's crackdown on video game loot boxes only part of the solution

Poland has drafted new legislation to tighten oversight around loot box mechanics in video games.

Loot boxes can usually be bought with real or in-game currency and contain new characters, items, skins or decorations for that particular game.

As such, they contain no real-world value, but many games have started introducing more intense pressure tactics to get people to buy them; including making certain loot boxes only available for short periods of time, exclusive content linked to characters or items and the general fear of missing out (FOMO).

Several of the most popular video games in the market contain loot boxes, including Overwatch, Fortnite and FIFA - all of which have a significant percentage of minors as their audience.

Under the new proposals, games that featured loot box mechanics would be classed as gambling games and subject to different licensing procedures.

Additional youth-protection measures would also be introduced to protect minors from the mechanic.

Marek Plota, RM Legal Managing Partner and specialist in gambling regulation, exclusively told Global Gaming Insider: "It is positive that the legislator has finally recognised the problem, and regulating in-game loot boxes is a step in the right direction, especially given their reach among minors.

"But this captures only part of the phenomenon. The greatest risks stem from external third-party platforms where users pay to open loot-box-style cases and trade skins or items, often with the ability to monetise them on secondary markets.

"These sites operate de facto like unlicensed online casinos with no stake limits, no responsible-gaming safeguards, opaque algorithms and strong influencer-driven marketing. This is where minors unknowingly enter the world of hard gambling disguised as harmless play."

Many countries are cracking down on skin-gambling sites as a separate issue, especially considering their vulnerability to money laundering schemes.