Europe cracks down on video games with new age, loot box rules

The European regulators are now set to target the video game industry, limiting children’s access to some video games under new age and loot rules.

At the core this crackdown lies the concerns of regulators who worried about the teens’ unrestricted access to games inappropriate for their age, especially the loot boxes, paid, random-item treasure chests, deemed as “an addictive form of gambling.”

The Pan-European Game Information (PEGI) body now considers games with loot boxes as inappropriate for children under 16. In the wake of growing concerns, the EU is planning an outright ban on loot boxes for minors under the upcoming "Digital Fairness Act" as it is expected to be passed in 2027.

In the UK, the gaming industry is already experiencing the tightened regulations, mandating age verification and potential social media bans for under 16s under the Online Safety Act, passed in 2023.

Moreover, Brazil has also banned the sale of loot boxes to minors, showing a broad-spectrum regulatory trend beyond Europe.

At this moment, regulators are intervening because they think the gaming industry’s self-regulation has proven futile. As per the estimates, none of the top 100 highest-grossing iPhone games in the UK sought parental consent for loot boxes, and very few disclosed their presence.

However,these regulations have ignited concerns among the actors of the gaming industry. For instance, loot boxes generated $23 billion globally in 2025. The experts suggest that new regulations could cost the industry billions annually.

In Europe, consumers spend around US$12 billion a year on in-game content, as reported by Video Games Europe, a video game lobbying group.

“Significant regulatory intervention could threaten a large proportion of that revenue. Disproportionate legislative measures would disrupt legitimate business models, undermine global competitiveness in the video games sector and affect European consumer choice,” the group wrote in an October 2025 letter.

For some companies, the age-verification restrictions and parental consent requirement are responsible for affecting revenue as Roblox shares plunged 18 percent in May 2025.

Stan McCoy, the general counsel for US video game lobbying group Entertainment Software Association, said in an interview, “If regulation puts its thumb on the scales in favour of one business model or another that can be a worse experience both for consumers and small businesses.”