Loot boxes are a corner of the video game world that game producers love because they generate huge amounts of revenue but are equally hated by lawmakers because they are, well, a form of gambling that’s aimed at children. But no matter what anybody thinks of loot boxes, they’re on track to generate an astounding $20 billion in revenue by 2025. That’s the conclusion of a recent report from Juniper Research titled, In-game Gambling & Loot Boxes: Legislation, Market Evolution & Forecasts 2021-2025.

The report suggests that even though that number is going to be huge, the market for loot boxes and skins gambling will actually slow down a bit by 2025 as consumers grow tired of the gambling gimmick. It’s definitely worth noting that Juniper Research makes no bones about what loot boxes actually are, a form of gambling. Plenty of international gambling regulators, particularly those in the UK, would be in agreement with that statement. Video game manufacturers, who are the sole beneficiaries of loot boxes have a very different view and don’t consider them to be a form of gambling at all.

The report’s co-author, Nick Hunt, commented on the current state of loot boxes saying, “Loot boxes in their traditional form are often considered exploitative; leading to increased legislative scrutiny. We expect to see game publishers react to this in future by changing loot box formats, in order to keep them compelling and outside the legal realms of gambling.”

Hunt also said that he fully expects video game makers to continually modify their products in an effort to stay ahead of regulators.


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