{"id":7306,"date":"2026-10-20T20:55:00","date_gmt":"2026-10-20T17:55:00","guid":{"rendered":"https:\/\/legalbit.top\/en\/loot-boxes-secondary-market\/"},"modified":"2026-10-23T15:59:47","modified_gmt":"2026-10-23T12:59:47","slug":"loot-boxes-secondary-market","status":"publish","type":"post","link":"https:\/\/legalbit.top\/en\/loot-boxes-secondary-market\/","title":{"rendered":"Loot Boxes and Secondary Markets: When a Game Mechanic Becomes Gambling Under EU and US Law"},"content":{"rendered":"\n<div class=\"lbm\"><svg width=\"0\" height=\"0\" style=\"position:absolute\" aria-hidden=\"true\"><symbol id=\"i-list\" viewBox=\"0 0 24 24\"><path d=\"M9 6h11M9 12h11M9 18h11\"\/><path d=\"M4 6h.01M4 12h.01M4 18h.01\"\/><\/symbol><symbol id=\"i-user\" viewBox=\"0 0 24 24\"><circle cx=\"12\" cy=\"8\" r=\"4\"\/><path d=\"M4 21c0-4 3.6-7 8-7s8 3 8 7\"\/><\/symbol><symbol id=\"i-ban\" viewBox=\"0 0 24 24\"><circle cx=\"12\" cy=\"12\" r=\"9\"\/><path d=\"M5.6 5.6l12.8 12.8\"\/><\/symbol><symbol id=\"i-layers\" viewBox=\"0 0 24 24\"><path d=\"M12 3l9 5-9 5-9-5z\"\/><path d=\"M3 13l9 5 9-5\"\/><\/symbol><symbol id=\"i-eye\" viewBox=\"0 0 24 24\"><path d=\"M2 12s4-7 10-7 10 7 10 7-4 7-10 7S2 12 2 12z\"\/><circle cx=\"12\" cy=\"12\" r=\"3\"\/><\/symbol><symbol id=\"i-doc\" viewBox=\"0 0 24 24\"><path d=\"M7 3h8l4 4v14H7z\"\/><path d=\"M15 3v4h4M10 12h6M10 16h6\"\/><\/symbol><symbol id=\"i-pen\" viewBox=\"0 0 24 24\"><path d=\"M4 20l4-1 11-11-3-3L5 16z\"\/><path d=\"M14 6l3 3\"\/><\/symbol><symbol id=\"i-book\" viewBox=\"0 0 24 24\"><path d=\"M4 5a2 2 0 0 1 2-2h13v16H6a2 2 0 0 0-2 2z\"\/><path d=\"M4 19V5\"\/><\/symbol><symbol id=\"i-alert\" viewBox=\"0 0 24 24\"><path d=\"M12 3l10 18H2z\"\/><path d=\"M12 10v4M12 17.5h.01\"\/><\/symbol><symbol id=\"i-bulb\" viewBox=\"0 0 24 24\"><path d=\"M9 18h6M10 21h4\"\/><path d=\"M12 3a6 6 0 0 0-3.5 10.9c.6.5 1 1.2 1 2.1h5c0-.9.4-1.6 1-2.1A6 6 0 0 0 12 3z\"\/><\/symbol><symbol id=\"i-info\" viewBox=\"0 0 24 24\"><circle cx=\"12\" cy=\"12\" r=\"9\"\/><path d=\"M12 11v5M12 8h.01\"\/><\/symbol><\/svg><section class=\"lbm-intro\"><div class=\"lbm-intro-main\"><p class=\"lbm-lead\">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.<\/p><p class=\"lbm-verified\">Checked on 21 October 2026. Rules and sources are current as of this date.<\/p><ul class=\"lbm-toc\"><li><a href=\"#test\">Three elements<\/a><\/li><li><a href=\"#eu\">European Union<\/a><\/li><li><a href=\"#us\">United States<\/a><\/li><li><a href=\"#case\">Case analysis<\/a><\/li><li><a href=\"#fix\">What to do<\/a><\/li><li><a href=\"#faq\">FAQ<\/a><\/li><\/ul><\/div><\/section><section id=\"test\"><h2>Three elements and the secondary market<\/h2><p style=\"max-width:70ch\">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.<\/p><div class=\"lbm-roles\"><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-pen\"\/><\/svg><\/span><h3>Consideration<\/h3><p>The player pays real money or purchased in-game currency.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-layers\"\/><\/svg><\/span><h3>Chance<\/h3><p>The content is set by a random number generator that the player cannot influence.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-doc\"\/><\/svg><\/span><h3>Prize<\/h3><p>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.<\/p><\/div><\/div><div class=\"lbm-co soft\"><span class=\"lbm-ico\"><svg><use href=\"#i-bulb\"\/><\/svg><\/span><div><b>Example: CS2<\/b><p>Valve built a cosmetic system and the Steam Community Market, while third-party sites used skins as stakes in roulette games. New York\u2019s complaint alleges that players can link accounts to third-party marketplaces and sell items for money. A mechanic\u2019s status depends not only on design but on a liquid secondary market.<\/p><\/div><\/div><\/section><section id=\"eu\"><h2>European Union: no single law<\/h2><p style=\"max-width:70ch\">National gambling laws and consumer law apply, and approaches diverge.<\/p><div class=\"lbm-roles\"><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-ban\"\/><\/svg><\/span><h3>Belgium<\/h3><p>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 \u20ac800,000. 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\u2019s 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.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-book\"\/><\/svg><\/span><h3>Netherlands<\/h3><p>The regulator required EA to remove loot boxes from FIFA Ultimate Team on pain of fines up to \u20ac10 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.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-layers\"\/><\/svg><\/span><h3>France<\/h3><p>The SREN Act of 21 May 2024 (Arts 40\u201341) 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.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-doc\"\/><\/svg><\/span><h3>Austria and Germany<\/h3><p>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.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-eye\"\/><\/svg><\/span><h3>PEGI<\/h3><p>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.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-alert\"\/><\/svg><\/span><h3>Digital Fairness Act<\/h3><p>The European Commission\u2019s proposal is scheduled for Q4 2026. The European Parliament\u2019s internal market committee has called for a ban on loot boxes in games accessible to children.<\/p><\/div><\/div><\/section><div class=\"lbm-svc\"><div><b>Need help with this topic?<\/b><p>We will review your situation and propose a solution for your project.<\/p><\/div><a class=\"lbm-svc-btn popmake-4929\" href=\"#\" role=\"button\">Contact us<\/a><\/div><section id=\"us\"><h2>United States: no statute, growing enforcement<\/h2><div class=\"lbm-roles\"><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-alert\"\/><\/svg><\/span><h3>FTC and Cognosphere<\/h3><p>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\u2019s 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.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-ban\"\/><\/svg><\/span><h3>New York v. Valve<\/h3><p>On 25 February 2026 the state attorney general sued, treating loot boxes in Valve\u2019s 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.<\/p><\/div><\/div><\/section><section id=\"case\"><h2>Case analysis<\/h2><div class=\"lbm-co soft\"><span class=\"lbm-ico\"><svg><use href=\"#i-bulb\"\/><\/svg><\/span><div><b>Hypothetical example, not a real case<\/b><p>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.<\/p><\/div><\/div><\/section><section id=\"fix\"><h2>What to do about loot boxes<\/h2><ol class=\"lbm-steps\"><li><span class=\"lbm-ico\"><svg><use href=\"#i-eye\"\/><\/svg><\/span><div><h3>Establish whether the item can be sold<\/h3><p>Through an official market, third-party sites or player-to-player trading.<\/p><span class=\"lbm-tag\">Start here<\/span><\/div><\/li><li><span class=\"lbm-ico\"><svg><use href=\"#i-doc\"\/><\/svg><\/span><div><h3>Disclose odds and the real price<\/h3><p>Drop probabilities and the cost in real money, without a confusing intermediate currency.<\/p><\/div><\/li><li><span class=\"lbm-ico\"><svg><use href=\"#i-user\"\/><\/svg><\/span><div><h3>Restrict children<\/h3><p>Age ratings, parental consent under 16, spending limits.<\/p><span class=\"lbm-tag must\">Urgent<\/span><\/div><\/li><li><span class=\"lbm-ico\"><svg><use href=\"#i-ban\"\/><\/svg><\/span><div><h3>Split regimes by country<\/h3><p>For Belgium, switch off paid random mechanics or make items non-transferable. For France, assess the JONUM regime.<\/p><\/div><\/li><li><span class=\"lbm-ico\"><svg><use href=\"#i-pen\"\/><\/svg><\/span><div><h3>Get an opinion before launch<\/h3><p>Counsel reviews the mechanic and the secondary market in every target jurisdiction.<\/p><\/div><\/li><\/ol><div class=\"lbm-co dark\"><span class=\"lbm-ico\"><svg><use href=\"#i-alert\"\/><\/svg><\/span><div><b>Takeaway<\/b><p>\u201cCosmetic only\u201d and \u201cno cash-out\u201d no longer protect on their own: regulators and courts look at economic reality.<\/p><\/div><\/div><\/section><figure class=\"lbm-pull\"><q>A regulator does not look at what you call the mechanic. It asks whether the win can be turned into money.<\/q><cite>The LegalBit team<\/cite><\/figure><section id=\"faq\"><h2>Frequently asked questions<\/h2><div class=\"lbm-faq\"><details><summary>Are all loot boxes treated as gambling?<\/summary><p>No. It depends on the country and on whether the item has monetary value. Belgium is the strictest; the US has no federal ban.<\/p><\/details><details><summary>Does banning cash-out help?<\/summary><p>Not always. If the item sells on an official or third-party market, a regulator may find a prize exists, as in New York\u2019s claim against Valve.<\/p><\/details><details><summary>Do I have to disclose drop odds?<\/summary><p>Yes. This is the main pressure point for the FTC and European regulators, regardless of any secondary market.<\/p><\/details><\/div><p class=\"lbm-more\"><b>See also: <\/b><a href=\"\/en\/play-to-earn-p2e\/\">Play-to-Earn (P2E) or Gambling in Disguise? Key Legal Risks for Developers<\/a>; <a href=\"\/en\/legal-support-for-token-sales-procedure\/\">Legal Support for Token Sales Procedure<\/a>; <a href=\"\/en\/online-casino-license\/\">Online casino licence: Cura\u00e7ao, Malta, Estonia, Anjouan or Tobique<\/a>. Services: <a href=\"\/en\/gamedev-gamefi-legal\/\">legal support for GameDev and GameFi<\/a>.<\/p><div class=\"lbm-src\"><b>Sources<\/b><ul><li><a href=\"https:\/\/ftc.gov\/business-guidance\/blog\/2025\/01\/level-tips-businesses-ftcs-settlement-genshin-impact-developer-hoyoverse\" rel=\"nofollow noopener\" target=\"_blank\">FTC: Genshin Impact \/ Cognosphere<\/a><\/li><li><a href=\"https:\/\/ag.ny.gov\/press-release\/2026\/attorney-general-james-sues-game-developer-promoting-illegal-gambling-through\" rel=\"nofollow noopener\" target=\"_blank\">New York Attorney General: lawsuit against Valve<\/a><\/li><li><a href=\"https:\/\/pegi.info\/news\/pegi-expands-age-rating-criteria-interactive-risk-categories\" rel=\"nofollow noopener\" target=\"_blank\">PEGI: PEGI expands age rating criteria with interactive risk categories<\/a><\/li><\/ul><\/div><\/section><\/div>\n\n\n\n<div class=\"lb-ac\"><h2>This is what we do<\/h2><p>How we help projects with this topic:<\/p><ul><li><a href=\"https:\/\/legalbit.top\/en\/gamedev-gamefi-legal\/\">Legal support for GameDev and GameFi<\/a><\/li><li><a href=\"https:\/\/legalbit.top\/en\/regulatory-and-compliance\/\">Licensing, compliance and AML\/KYC<\/a><\/li><\/ul><\/div>\n\n\n\n<script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"BlogPosting\",\"image\":\"https:\/\/legalbit.top\/wp-content\/uploads\/2026\/10\/loot-boxes-secondary-market-hero-scaled.webp\",\"headline\":\"Loot Boxes and Secondary Markets: When a Game Mechanic Becomes Gambling Under EU and US Law\",\"description\":\"When loot boxes become gambling: the secondary market, Belgian, French and Austrian practice, the FTC and New York v. 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The deciding question is whether the item can be [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":7308,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[71,69],"tags":[133,135,112,136,78,125,134,113,124],"post_folder":[],"class_list":["post-7306","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gamedev","category-igaming","tag-consumer-protection","tag-digital-fairness-act","tag-eu","tag-ftc","tag-gambling","tag-loot-boxes","tag-pegi","tag-us","tag-video-games"],"_links":{"self":[{"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/posts\/7306","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/comments?post=7306"}],"version-history":[{"count":30,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/posts\/7306\/revisions"}],"predecessor-version":[{"id":8150,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/posts\/7306\/revisions\/8150"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/media\/7308"}],"wp:attachment":[{"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/media?parent=7306"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/categories?post=7306"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/tags?post=7306"},{"taxonomy":"post_folder","embeddable":true,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/post_folder?post=7306"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}