Meta suspected of promoting illegal “loot boxes” ads in Belgium

Meta, who is responsible for Facebook and Instagram, has received payments from 172 mobile gaming companies to advertise game features that Belgium considers a form of gambling.

These features, widely known as “loot boxes,” provide players with random virtual rewards to improve their gaming experience. The revelation was made by beClaws researcher Leon Y. Xiao earlier this week.

Concerns about the effect on young gamers

Loot boxes in video games are virtual “boxes” containing random rewards. Players can purchase them with real money or in-game currency. The gambling aspect comes from not knowing what you will get, and some items are much rarer than others. This can lead to addictive behavior, where players spend more money in hopes of getting valuable rewards. In some countries, loot boxes are considered a form of gambling and are subject to the same regulations. They have generated controversy for their resemblance to gambling.

The disclosure came from Leon Y. Xiao, a researcher with the beClaws group, who revealed the findings. A 2022 beClaws study found that 80% of mobile games contained loot boxes, raising concerns about the exposure of young players to gambling-like mechanics. Many of these games are specifically aimed at children and teenagers, making them particularly vulnerable.

As a result, the potential for these games to encourage gambling behaviors at a young age has come under scrutiny. Researchers have raised concerns about the connection between early exposure to gambling through video games and an increased risk of developing problematic gambling habits later in life.

Continued violations and growing concerns loot box advertising

Under Belgian law, game developers are required to obtain a license to include loot boxes in their games. However, the Gambling Commission rarely grants these licenses, rendering the practice illegal in the country.

A new investigation by the beClaws group has revealed that the issue persists, with 82% of mobile game developers continuing to implement loot boxes and using platforms like Meta to promote them.

An extensive review of 1,574 advertisements showed that these in-game purchases were displayed to Belgian users a staggering 4.5 million times.

Worryingly, 1.26 million of those views were from individuals under the age of 21, a group particularly at risk of developing gambling problems.

Beclaws researcher Leon Y. Xiao:

“Popular games like ‘Genshin Impact’ and ‘Brawl Stars,’ which are especially popular among young children, are involved”

Among the most frequently viewed advertisements was one for Harry Potter: Puzzles & Spells which reached nearly 400,000 views in Belgium alone.

The report also highlights that, in addition to violating Belgium’s gambling laws, advertising loot boxes is itself illegal.

Xiao emphasized:

“This illegal advertising of prohibited gambling games is a separate offense from offering illegal gambling games”

In a related development, Blizzard Entertainment recently announced that Overwatch 3 will reintroduce the controversial loot boxes, a mechanic that was not included in the second installment of the popular series.

Furthermore, a study published in February in the monthly journal Computers in Human Behavior explored the effects of loot boxes on the mental health of gamers, suggesting a link between gambling-related issues and loot boxes.

One of the first countries to take a position against “loot boxes”

In a related development, a Belgian couple recently lodged a complaint against Riot Games, the developer of League of Legends, accusing the company of offering paid loot boxes in violation of Belgium’s stringent regulations.

Belgium has taken a strong position against loot boxes, becoming one of the first countries to regulate their use.