Are lootboxes gambling? It seems like such a simple question, but it really isn’t simple from a legal or ethical standpoint, and the answer has a pretty big impact. According to the New Zealand Department of Internal Affairs, following reviews, lootboxes do not meet the legal requirements of gambling, thus freeing them from the scrutiny of agencies designed to look more closely into gambling-related issues.
In short, the argument hinges upon the fact that lootbox items cannot be exchanged for cash and thus do not qualify as gambling under the law. That having been said, it’s not an ironclad ruling which cannot be changed; indeed, it’s something likely to be debated extensively as more and more lawmakers turn a critical eye toward the practice. For the moment, though, New Zealand considers them perfectly acceptable and has picked a side in the ongoing battle.