The same mechanic, a paid random item, may be unlawful gambling in Belgium, fall under a separate regime in France when items can be monetised, and face no federal ban in the US, where the FTC (US Federal Trade Commission) and the states are nonetheless acting. The deciding question is whether the item can be turned into money. We go through how to test a mechanic against the elements of gambling and why a secondary market changes the assessment.
Checked on 21 October 2026. Rules and sources are current as of this date.
Three elements and the secondary market
Gambling law in many countries (in the US mainly at state level) rests on three elements: consideration, chance and a prize. For paid loot boxes the first two are usually obvious, so the dispute is about the prize: does the item have monetary value.
Consideration
The player pays real money or purchased in-game currency.
Chance
The content is set by a random number generator that the player cannot influence.
Prize
If the item is locked in the game and cannot be sold, the argument is weak. If it is traded for money, the risk is real even where the developer never offered cash-out.
Valve built a cosmetic system and the Steam Community Market, while third-party sites used skins as stakes in roulette games. New York’s complaint alleges that players can link accounts to third-party marketplaces and sell items for money. A mechanic’s status depends not only on design but on a liquid secondary market.
European Union: no single law
National gambling laws and consumer law apply, and approaches diverge.
Belgium
In 2018 the Gaming Commission held that loot boxes in FIFA 18, Overwatch and CS:GO were unlawful gambling. Criminal liability is possible: up to five years in prison and a fine of up to €800,000. EA stopped selling FIFA Points in Belgium in January 2019. On 16 January 2025 the Antwerp Enterprise Court (LS v Apple) held paid loot boxes in Top War to be unlawful gambling and pointed to the App Store’s role in facilitating access. The platform immunity question has been referred to the CJEU (Court of Justice of the EU), so distributor liability is not final yet.
Netherlands
The regulator required EA to remove loot boxes from FIFA Ultimate Team on pain of fines up to €10 million. In March 2022 the Council of State set the sanction aside: in that case loot boxes were not a standalone game of chance. The underlying question remains open.
France
The SREN Act of 21 May 2024 (Arts 40–41) created an experimental JONUM regime for online games with monetisable digital items. It has applied since 7 February 2026 (Decree No 2026-60), with ANJ (French national gambling authority) as regulator. There is no licence, only a prior declaration; adults only, limits, AML (anti-money laundering), and cash prizes are banned. Ordinary loot boxes without monetisable items are outside the regime.
Austria and Germany
In 2023 lower Austrian courts held FIFA packs to be gambling, but on 18 December 2025 the Supreme Court (6 Ob 228/24h) ruled otherwise: the game is assessed as a whole and the outcome also depends on skill. German practice is fragmented.
PEGI
From 1 June 2026 new games with paid random items are rated PEGI (Pan European Game Information, the European game age rating system) 16 at least, sometimes PEGI 18. From October 2026 ratings of released digital games are being reviewed. This restricts the audience rather than banning the mechanic.
Digital Fairness Act
The European Commission’s proposal is scheduled for Q4 2026. The European Parliament’s internal market committee has called for a ban on loot boxes in games accessible to children.
We will review your situation and propose a solution for your project.
United States: no statute, growing enforcement
FTC and Cognosphere
In January 2025 the Genshin Impact developer agreed to pay $20 million and not to sell loot boxes to players under 16 without parental consent. The grounds were COPPA (US Children’s Online Privacy Protection Act) violations and misleading players about odds and the real price of the currency. The regulator does not need to prove the mechanic is gambling.
New York v. Valve
On 25 February 2026 the state attorney general sued, treating loot boxes in Valve’s games (including Counter-Strike) as gambling under state law. The key argument is the secondary market, valued at over $4.3 billion (a March 2025 report). The relief sought is an injunction, disgorgement and fines. Valve contests the claim and the case is ongoing.
Case analysis
A mobile game studio adds chests with items that can be won using in-game currency bought for money and then sold to other players on a third-party marketplace. A sensible order of action is to test the mechanic against the three gambling elements, assess the secondary market separately, disclose the odds and the real price, and consider switching the mechanic off in markets with strict rules.
What to do about loot boxes
Establish whether the item can be sold
Through an official market, third-party sites or player-to-player trading.
Start hereDisclose odds and the real price
Drop probabilities and the cost in real money, without a confusing intermediate currency.
Restrict children
Age ratings, parental consent under 16, spending limits.
UrgentSplit regimes by country
For Belgium, switch off paid random mechanics or make items non-transferable. For France, assess the JONUM regime.
Get an opinion before launch
Counsel reviews the mechanic and the secondary market in every target jurisdiction.
“Cosmetic only” and “no cash-out” no longer protect on their own: regulators and courts look at economic reality.
A regulator does not look at what you call the mechanic. It asks whether the win can be turned into money.The LegalBit team
Frequently asked questions
Are all loot boxes treated as gambling?
No. It depends on the country and on whether the item has monetary value. Belgium is the strictest; the US has no federal ban.
Does banning cash-out help?
Not always. If the item sells on an official or third-party market, a regulator may find a prize exists, as in New York’s claim against Valve.
Do I have to disclose drop odds?
Yes. This is the main pressure point for the FTC and European regulators, regardless of any secondary market.
See also: Play-to-Earn (P2E) or Gambling in Disguise? Key Legal Risks for Developers; Legal Support for Token Sales Procedure; Online casino licence: Curaçao, Malta, Estonia, Anjouan or Tobique. Services: legal support for GameDev and GameFi.
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