Meta Accused of Running Illegal Loot Box Ads in Belgium

Meta, the tech giant behind Facebook and Instagram, has been paid by 172 mobile gaming companies to run advertisements promoting game features that Belgium classifies as gambling.

The respective features, commonly called “loot boxes,” give random virtual rewards to players for the purpose of enhancing their gameplay. The information was announced by beClaws research group member Leon Y. Xiao at the start of the week.

Last month, a couple in Belgium filed a complaint against Riot Games, the company behind League of Legends, accusing it of offering paid loot boxes despite Belgium’s strict rules.

80% of Mobile Games Feature Loot Boxes

Since they frequently require real money purchases, these in-game mechanics have sparked controversy due to their similarities to gambling. 

The revelation came from Leon Y. Xiao, a researcher with the beClaws group, who disclosed the findings on Monday.

According to a 2022 beClaws study, 80% of mobile games included loot boxes. This means young players are constantly exposed to gambling-like mechanics since many of these games specifically target children and teenagers.

Automatically, the potential for fostering gambling habits at an early age has been thrown in the spotlight, with researchers suggesting a link between exposure to gambling while playing video games and a heightened risk of developing problematic gambling behaviors later in life.

Belgium’s Firm Stance on Loot Boxes 

Belgium has strongly opposed these mechanisms and became one of the first countries to regulate them. 

Accordingly, under Belgian law, game developers must obtain a license to include loot boxes in their titles. Nonetheless, the Gambling Commission rarely issues these types of licenses, which means the practice is deemed illegal in the country.

A new investigation by beClaws has revealed that the problem has not vanished, with 82% of mobile game developers continuing to use loot boxes and leveraging platforms like Meta to promote them. 

An in-depth review of 1,574 advertisements found that these in-game purchases were displayed to Belgian users 4.5 million times. 

Alarmingly, 1.26 million of these views came from individuals under the age of 21, a demographic particularly vulnerable to gambling risks.

“Popular games like ‘Genshin Impact’ and ‘Brawl Stars,’ especially favored by young children, are involved,” noted beClaw’s Xiao. 

Among the most widely seen advertisements was one for “Harry Potter: Puzzles & Spells,” which reached nearly 400,000 views in Belgium alone.

In addition to violating Belgian gambling laws, the report underscores the fact that advertising these mechanics is also illegal. 

“This illegal advertising for illicit gambling games is a separate offense from offering illegal gambling games,” concluded Xiao.

Last month, Blizzard Entertainment announced Overwatch 3 would reintroduce the controversial loot boxes. The mechanic was not part of the second entry of the popular franchise. 

Also, in February, the monthly peer-reviewed academic journal Computers in Human Behavior published a study on the effects of loot boxes on the mental health of video gamers, suggesting links between gambling-related problems and loot boxes.