Cashing out is the dividing line
Most countries don't treat loot boxes or gacha games as gambling, mainly because you can't cash out the items or characters you win. Counter-Strike skins are the big exception, since they sell for real money on the Steam market.
Packdraw goes further. You can swap the item you pull for site balance and withdraw it in crypto, which is what most gambling laws look for, even though no court or regulator has ruled on it yet. Pokémon cards sit in between. Buying packs in a shop isn't gambling, and a US court threw out a gambling lawsuit against Pokémon in 2002, but online pack-opening sites that buy cards back instantly are now being tested in court.
How countries handle it
Belgium is the strictest, treating paid loot boxes as illegal gambling. The UK and the US don't, and most countries regulate gacha games through rules on odds and spending instead. Japan, China and the US have all done this. The odds can be steep. In Genshin Impact the base chance of a 5-star character is 0.6% per pull.
Why parents should pay attention
The research is clear on one point. People who spend more on loot boxes are more likely to have gambling problems, and the link is stronger in teenagers. Whatever the legal label, spending limits are worth setting on any game that sells random rewards.
Every topic in this group
- Are gacha games gambling? Grey area
Is gacha gambling? Legally it's a grey area in most countries. Here's how pulls and pity work, what Japan, China and the FTC have done, and what the research says.
- Are loot boxes gambling? Depends where you live
Are loot boxes gambling? Belgium says yes, most countries say no. Here's where the law stands in 2026, what the FTC and New York are doing, and what the research says about loot boxes and problem gambling.
- Is Packdraw gambling? Yes, it's gambling
Is Packdraw gambling? It meets all three parts of the legal test, because you can cash out what you win in crypto. Here's how the site works, who runs it, and what regulators say about mystery boxes.
- Is opening Pokémon cards gambling? Grey area
Is opening Pokémon packs gambling? Not legally, but online rip sites with instant buybacks and card breaks are a grey area. Here's what the courts and the research say.