Probability disclosures are not enough: Reducing loot box reward complexity as a part of ethical video game design

Abstract

Loot boxes in video games provide randomised rewards that bear structural similarities to gambling. Current loot box consumer protection measures, such as requiring probability disclosures, have been inspired by similar approaches in gambling. However, current loot box rewards are too complex for consumers to be meaningfully protected by probability disclosures alone. But as digital goods, loot boxes can be redesigned in more ethical ways. Four reductions to loot box reward complexity are proposed: capping the maximum number of loot boxes per game and potential rewards per loot box, equalising ‘winning’ probabilities across rewards, and implementing ‘exhaustible’ loot boxes.