South Korea fined a studio over $110,000 for hiding a loot box's real odds — most countries still have no such law at all
A country-by-country look at loot box regulation in 2026: who requires odds disclosure, who bans paid loot boxes outright, who just raises the age rating, and who has no rule at all.
Updated September 22, 2026
Key findings
- South Korea has the toughest enforcement regime: a combined $3,400 fine against KRAFTON and Com2uS in June 2025, then a much larger $110,000–$120,000 penalty against Webzen in November 2025.
- China has required loot box odds disclosure since 2017 — longer than any other major market — enforced through license suspension rather than fixed fines.
- The Netherlands treats loot boxes as a consumer-protection issue, not gambling; Belgium is the opposite, banning paid loot boxes outright since 2018 with fines up to €800,000.
- Australia's 2024 classification reform raises the age rating for games with loot boxes (M) or simulated gambling (R18+) but doesn't ban the mechanic or apply retroactively.
- Japan and the United States — two of the largest gaming markets in the world — still have no statutory loot box law at all, relying entirely on industry self-regulation or app-store policy.
Six years after Belgium first declared paid loot boxes a form of gambling, there is still no international consensus on how — or whether — to regulate them. Some governments require publishers to disclose the exact odds of every item; others ban the mechanic outright; others simply raise the minimum age rating and leave the mechanic itself untouched; and two of the largest gaming markets in the world, Japan and the United States, still have no statutory loot box law of any kind. This piece expands on the correlational research covered in our gaming-gambling connection analysis by mapping exactly what each major market actually requires — and enforces — as of 2026.
This page summarizes publicly reported laws, regulator actions, and industry self-regulation for informational purposes. It is not legal advice; studios should consult qualified counsel in each market before launching or changing a monetization feature.
South Korea has the toughest enforcement of any market
South Korea's Game Industry Promotion Act, amended March 22, 2024, requires statutory disclosure of the exact odds for every probability-based item. Violations can bring corrective orders, up to two years' imprisonment, or a fine of roughly $14,500 (20 million KRW) — and since a punitive damages regime took effect on August 1, 2025, courts can now award up to three times actual damages to affected players. Enforcement has followed quickly: the Korea Fair Trade Commission issued a combined fine of about $3,400 against KRAFTON and Com2uS on June 16, 2025, then a far larger penalty of roughly $110,000–$120,000 against Webzen on November 30, 2025, over allegedly hidden 0% drop rates.
Regulators think even that isn't enough of a deterrent. A pending amendment from lawmaker Kim Seong-hoi would add an administrative surcharge of up to 3% of revenue or roughly $760,000 (1 billion KRW), whichever framework applies, for false or missing probability disclosures — explicitly reasoning that "economic gains obtained through probability manipulation can exceed existing penalties." The proposal cleared a National Assembly committee review in February 2026; South Korea's own game industry association has raised concerns that "revenue" isn't clearly defined, which could make penalties disproportionate to the violation.
| Country | Regulatory approach | Maximum penalty |
|---|---|---|
| South Korea | Mandatory odds disclosure | ~2 yrs imprisonment / ~$14,500 fine; 3x damages; revenue-based surcharge proposed |
| China | Mandatory odds disclosure | License suspension or denial; no published fine cap |
| Netherlands | Consumer-protection disclosure duty | Regulatory order to comply (ACM) |
| Belgium | Paid loot boxes banned as gambling | Up to €800,000, possible imprisonment |
| Australia | Higher age rating (no ban) | N/A — classification requirement, not a fine regime |
| Japan | Only "kompu gacha" banned; rest self-regulated | No statutory penalty for standard gacha |
| United States | No federal or state law | N/A — app-store policy only |
China requires disclosure — but doesn't publish a fine schedule
China has required loot box disclosure the longest of any major market: a Ministry of Culture notice effective May 1, 2017 — now enforced by the National Press and Publication Administration — requires publishers to post the names, properties, quantities, and exact draw probabilities of every item, and to retain those records for at least 90 days. Non-compliance risks license suspension or denial rather than a fixed monetary fine, which in China's licensing-gated market can be a more severe commercial threat than a cash penalty would be.
The Netherlands treats it as a consumer-protection issue, not gambling
Unlike Belgium, the Netherlands does not classify loot boxes as gambling outright. Following a Council of State ruling on March 9, 2022, and guidelines the Authority for Consumers and Markets (ACM) published in 2023, Dutch regulators instead require adequate disclosure to consumers under existing consumer-protection law. That framework has real teeth: the ACM upheld a consumer complaint in April 2025 confirming publishers' disclosure duties under the guidelines, without requiring loot boxes to be removed from the market entirely.
Belgium still bans paid loot boxes outright
Belgium remains the strictest major market. Its Gaming Commission classified paid loot boxes as unlicensed gambling in April 2018, with penalties of up to €800,000 and potential imprisonment for non-compliant publishers. The practical effect, as covered in our earlier analysis, has been publishers removing real-money loot box purchases for Belgian users while keeping the same items obtainable through ordinary gameplay — a workaround the law does not currently reach.
Australia raises the age rating instead of banning the mechanic
Australia took a third approach entirely. Classification reforms announced in September 2023 and in effect since September 2024 require any game containing loot boxes to carry a minimum M (Mature) rating, flagged as not recommended for players under 15; games with simulated gambling mechanics, such as social casino features, must carry the more restrictive R18+ rating. The Australian Government cited research from the Australian Gambling Research Centre linking loot box engagement to problem gambling as the basis for the change. Crucially, the new rules apply only to new content going forward, not retroactively to games already classified — and research examining mobile games marketed to children, published in September 2025, found loot box mechanics remained common even after the rule took effect, since a higher age rating restricts marketing and storefront placement rather than removing the mechanic itself.
Japan and the US still have no loot box law at all
Two of the largest gaming markets in the world remain almost entirely unregulated on this specific issue. Japan's 1962 Premiums Act bans only "kompu gacha" — mechanics that require completing a full set to unlock a bonus item — a narrow prohibition dating to May 2012. Standard gacha and loot box mechanics remain fully legal, governed only by voluntary guidelines from the Computer Entertainment Supplier's Association (2016) and the Japan Online Game Association, with no statutory penalty attached to non-compliance.
The United States has no federal or state law mandating loot box or gacha odds disclosure as of September 2026. Every state bill introduced since Hawaii's original 2018 attempt (HB 2686, SB 3024, HB 2727, and SB 3025) has died in committee. The closest thing to a disclosure requirement in the US market is platform policy rather than law: Apple's App Store has required loot box odds disclosure since December 2017, and Google Play since May 2019 — rules a storefront can enforce through app removal, but that carry no government penalty behind them.
Tracking fast-moving regulatory stories across multiple countries — and turning them into a single clear comparison — is exactly the kind of research Beacon Digital PR builds into press-ready campaigns for gaming and gambling clients. See how we approach campaigns in this niche, or book a free consultation.
Frequently asked questions
Which countries require loot box odds disclosure?
South Korea, China, and the Netherlands all require some form of probability or odds disclosure, though through different legal mechanisms — South Korea and China through statute, the Netherlands through consumer-protection guidance.
Which countries have banned loot boxes outright?
Belgium is the clearest example, classifying paid loot boxes as unlicensed gambling since April 2018, with fines up to €800,000. In practice, affected items typically remain available through ordinary gameplay rather than disappearing entirely.
What penalty did South Korea issue against Webzen?
The Korea Fair Trade Commission fined Webzen roughly $110,000–$120,000 on November 30, 2025, over allegations that the studio hid a loot box item's true 0% drop probability.
Does Australia ban loot boxes?
No. Since September 2024, Australia requires games containing loot boxes to carry a minimum M (Mature) rating and games with simulated gambling to carry an R18+ rating — a classification change, not a ban, and it doesn't apply retroactively to already-classified games.
Do Japan and the US regulate loot boxes?
Not by statute. Japan bans only the narrower "kompu gacha" mechanic (since 2012) and relies on industry self-regulation for everything else. The US has no federal or state law at all; every state bill since 2018 has died in committee, leaving only voluntary Apple and Google app-store disclosure policies.
Is South Korea increasing penalties for loot box violations?
A pending amendment reviewed by South Korea's National Assembly in February 2026 would add a revenue-based administrative surcharge — up to 3% of revenue or roughly $760,000 — on top of existing criminal penalties and the punitive damages regime that took effect in August 2025.
Methodology
Country-level legal and enforcement details were compiled from publicly reported legal analysis and news coverage current to their publication dates in 2025 and 2026, cited individually below. Penalty figures denominated in foreign currency (Korean won, euros) are converted to approximate US dollars as reported by the cited sources at the time of publication and have not been independently re-converted or verified against current exchange rates. This page does not independently verify each regulator's enforcement record beyond what the cited sources report, and several details — particularly proposed but not-yet-enacted amendments in South Korea — describe pending legislation that may change before final passage.
References
- Shattered.io. (2026). Loot Box Odds Laws 2026: Korea 3x Damages, US Zero. https://shattered.io/loot-box-odds-disclosure-laws-2026/
- Inven Global. (2026). Loot Box Crackdown? South Korea Eyes Revenue Penalties for Probability Disclosure Breaches. https://www.invenglobal.com/articles/20244/loot-box-crackdown-south-korea-eyes-revenue-penalties-for-probability-disclosure-breaches
- GamesHub. (2023, September). Australia sets new classification standards for video games with gambling and loot boxes. https://www.gameshub.com/news/news/australia-classification-law-loot-boxes-gambling-video-games-2629954/
- Senet Group. (2025). New Classification Rules for Video Games in Australia (2025). https://www.senetgroup.com/news-and-insights/new-classification-rules-for-video-games-in-australia-2025
- The Conversation. (2025, September). Loot boxes are still rife in kids' mobile games, despite ban on 'gambling-like' features. https://theconversation.com/loot-boxes-are-still-rife-in-kids-mobile-games-despite-ban-on-gambling-like-features-266226
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