Gaming the system: legally-required loot box probability disclosures in video games in China are implemented sub-optimally
Paid loot boxes provide randomised rewards in video games; their use is linked to disordered gambling and they are present in approximately half of UK video games. The relative novelty of loot boxes means that regulators and policymakers in various jurisdictions are still deciding how to regulate them. The People’s Republic of China (PRC) is the first and only jurisdiction to legally require video game companies to disclose the probabilities of obtaining randomised loot box rewards—an approach that is also favoured by the video games industry as self-regulation. This study is the first to assess loot box prevalence in the PRC and video game companies’ discretionary interpretations of the probability disclosure regulation. Loot boxes were found in 91 of the 100 most-popular PRC iPhone games, and 90.5% of games deemed suitable for children aged 12+ contained loot boxes. For games containing loot boxes, disclosure statements could not be found for 4.4% of games. Loot box probability disclosures were implemented through various means, but only five games used the most prominent disclosure format. Legal regulation and/or self-regulation of loot box probability disclosures should require uniform and prominent disclosures to best help inform consumers.