Are there laws that regulate loot boxes or other incentives in digital games?

Yes, there are laws that regulate loot boxes or other incentives in digital games, specifically in the state of Texas. In 2019, the Texas Legislature passed a law that prohibits businesses from allowing customers to pay money to purchase items in video-game loot boxes that are random and unpredictable. This law applies to video games that are rated “E for Everyone” by the Entertainment Software Rating Board or “T for Teen” in the United States. The law also prohibits businesses from offering any kind of incentive or reward to any person who pays money to purchase items in a video-game loot box. This includes offering rewards in the form of loyalty points, virtual currency, or other kinds of digital items that can be later exchanged for real money or virtual items. Additionally, the law calls for the inclusion of language in games that warns players about the potential risks of purchasing items in loot boxes. This language must be included in the game before a customer can pay for a loot box item. Although this law applies specifically to Texas, other states have proposed similar legislation that would regulate loot boxes or other incentives in digital games.

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