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Video Games and Gambling-Like Mechanics: Why Parents Should Watch Loot Boxes

Illustration of a video game loot box with slot-machine style rewards
Illustration: House of Wisdom Podcast — loot-box mechanics. Source image linked above.

Video games have become a normal part of childhood, but experts are increasingly drawing attention to a less obvious issue: some popular games use mechanics that resemble gambling.

Features such as loot boxes, gacha systems, blind rewards, virtual currencies and paid shortcuts can encourage players to spend money for uncertain or randomized rewards. For children and teenagers, these systems can be particularly difficult to understand and control.

A September 2026 report by Good Housekeeping highlighted concerns from psychologists and gambling researchers about how these mechanics can influence young players. The concern is not about video games as a whole, but about specific features that combine spending with unpredictable rewards.

How gambling-style mechanics work in video games

A loot box typically contains a random selection of virtual items. Players may spend real money—or convert real money into an in-game currency—to obtain the box without knowing exactly what they will receive.

The reward might be a character, card, skin, collectible or another digital item. The uncertainty is a key part of the experience. Research has examined the psychological similarities between loot boxes and gambling, while studies have also found associations between loot-box purchasing and problematic gaming or gambling behaviors.

Why virtual currency can make spending harder to understand

One major concern is the use of virtual currencies. Instead of directly paying $5 or $10 for an item, a player may first purchase virtual coins, gems or another digital currency and then spend it inside the game.

The Federal Trade Commission has warned that children may have difficulty keeping track of spending when real-world money is converted into in-game currency. The agency says parents can use available controls to turn off purchases, require a password or set spending limits.

A $1,000 gaming bill highlights the concern

The Good Housekeeping report cited psychiatrist Timothy Fong of the UCLA Gambling Studies Program, who described what happened when his son was 14. After encountering a feature in NBA 2K offering a chance to obtain virtual trading cards, his son spent ,000 in three hours, according to Fong.

The example illustrates why researchers are concerned about frictionless spending and randomized rewards. It does not mean that every child who buys a loot box has a gambling disorder; rather, it shows how quickly spending can escalate when payment is built into a highly engaging game.

Hands holding a game controller while a screen displays loot box rewards
Illustration: Prescott House — gaming and loot-box spending. Source image linked above.

Loot boxes are not the only concern

Randomized rewards are only one type of potentially problematic game mechanic. Some games use pay-to-skip or pay-to-progress systems, allowing players to spend money to move through a game faster.

Other games offer limited-time rewards, special passes or collectible systems designed to create urgency. When these features are combined with repeated opportunities to spend, some players may find it difficult to stop.

What parents should look for

  • Requests to buy virtual currency repeatedly.
  • Repeated purchases for random rewards.
  • Loot boxes or gacha-style systems.
  • Attempts to hide purchases or spending.
  • Increasing demands for money to continue playing.
  • Gaming interfering with sleep, school, friendships or daily life.
  • Strong emotional reactions after failing to receive a desired item.

Check ratings and purchase information

Parents can check a game’s rating and purchase disclosures before allowing children to play. The Entertainment Software Rating Board provides information about in-game purchases and interactive elements, including disclosures for randomized items.

Set spending limits before handing over the device

Parents can disable in-game purchases where possible, require authorization for every purchase, set a spending limit and avoid leaving unrestricted access to a stored credit card. Reviewing purchase histories can also help identify unexpected spending.

The FTC has also taken action involving loot boxes. In January 2025, the agency announced a settlement involving the developer of Genshin Impact that included a million payment and restrictions on loot-box purchases by children under 16 without parental consent, along with requirements concerning price and odds disclosures.

Talk to children instead of simply saying “no”

Parents can ask children what they enjoy about a game, why a particular item matters and how much a virtual purchase costs in real money. It can also help to explain probability and make clear that paying again does not guarantee the desired reward.

Where does gaming end and gambling begin?

Not every in-game purchase is gambling. Buying a fixed-price digital outfit is different from paying for a randomized reward. Similarly, purchasing an expansion is different from repeatedly paying for a chance to obtain a particular item.

The concern arises when money, uncertainty and repeated rewards are combined in ways that can encourage continued spending. For parents, the goal is therefore not simply to count gaming hours but also to understand how a game is designed to keep players engaged and spending.

Related NewsNationOnline coverage

Readers can also explore NewsNationOnline’s Gaming News section for more coverage of video games, gaming technology and industry developments, including our Astro Bot PS5 review.

Sources and further reading

NewsNationOnline reports on developments in gaming and digital technology. The article is independently written and uses the cited sources for attribution and additional context.

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