So, gambling is addictive, makes you spend more and more money, occasionally when you're lucky you get a big payout, though on average you lose. It is heavily regulated worldwide.
Gaming is also addictive, makes you spend more and more money, but there's no chance of a payout, ever. Completely unregulated.
Depends on the country and the type of lootboxes. In the Netherlands for example lootboxes with items that cannot be purchased or traded otherwise are legal. Lootboxes with items that may have monetary value are considered a form of slot machine gambling.
Overwatch Loot Box
In April of 2018, the Netherlands Gaming Authority conducted a study of 10 unnamed games, and concluded that four of the games were in violation of Netherlands laws concerning gambling. To be exact, the study said (via PC Gamer), "that the content of these loot boxes is determined by chance and that the prizes to be won can be traded outside of the game: the prizes have a market value." In order to sell such items in the Netherlands a license is required but given the current laws, no license can be given to game companies, so "these loot boxes (were) prohibited." The loot boxes used in the other games were deemed legal because they lack "market value." According to the study, those loot boxes whose prizes wouldn't be traded constituted a low risk for gambling addiction, being akin to "small-scale bingo." The marketable loot boxes though, those which are banned in the country, "have integral elements that are similar to slot machines."*
I can’t do games with micro transactions. I got hooked on one and it was hard to break out of it even after I recognized how stupid my spending was. I was drawn into the games community which made it hard to let go and easy to get carried away with spending. It was a team atmosphere and cutting back made it feel like I was hurting our group. Eventually I sold my account to get out. It was very hard to do though. This type of spending looks really stupid from the outside looking in but there’s a strong draw that’s tough to escape when you’re in the middle of it. I just have to avoid them entirely now because I’m afraid getting addicted again. I don’t really play mobile games anymore because of how common it is
Commenting here so I can read the article later, but I have to say I have NEVER in all my years of gaming, which reachs back to the Atari days, seen a game so manipulative as Royal Match.
This game seriously scares me in how it cleverly tries to manipulate the player. The graphics are stunning - cuties and bright and everything is whizzing around and things are flying across the screen. The frowny face of the king when you fail, the tease of just one more game. I play it once in a while and kind of step back and look at this as a master class in being able to manipulate users to do your bidding. I absolutely hate the game ans yet am drawn to it time and again.
To be clear,I haven't and I never will spend a dime on a game like this, but I'm still amazed by the tactics of this game.
These gaming companies have no moral bounds in what they'll do to manipulate people into giving them money. It really is criminal, but law is usually ten even twenty years behind tech.