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Are Loot Boxes in Games a Violation of Gambling Laws?

Accepted submission by Bill Dimm http://www.cluster-text.com/ at 2018-01-06 16:55:20 from the legal dept.
Business

Loot boxes [wikipedia.org] in video games give the player a random item, perhaps a weapon or a skin, typically in exchange for payment. Should they be viewed as a legal sweepstakes or as an illegal lottery? This video [youtube.com] examines the legal issues and explains how loot boxes could be structured to avoid running afoul of gambling laws (which vary by state) in the U.S.. The video concludes that many current implementations of loot boxes are really illegal lotteries, and conjectures that major game companies use them anyway because the risk of being prosecuted isn't enough to dissuade them.


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