Roblox Warns Loot Box Regulation is Spreading

Development platform targeted by gambling regulators that may ban children from purchasing digital goods.

August 13, 2022

Roblox (RBLX), a digital gaming development platform, is in the beginning stages of building an ad supported offering, which poses unique jurisdictional and age related challenges since the company caters to children. Even more important though— and largely ignored amid talk of an ad supported model— is the potential crackdown on loot boxes, or mystery items users purchase for a chance to enhance the gaming experience.

In its latest quarterly report, Roblox revealed that Spanish gambling regulators introduced a bill aimed at prohibiting minors from accessing loot boxes. If the bill becomes law, it may require Roblox to limit the availability of certain features in Spain. The company warned similar regulation may be adopted in other countries.

If civil litigation filed last year in Brazil is successful, it may lead to a nationwide ban on loot boxes.

Though the company did not mention Spain specifically in its latest annual report, Roblox disclosed 18% of sales were generated in Europe which includes Spain.

Related: U, META, NVDA, TTWO, ATVI, EA

Become a DuDil Insider

Get our due diligence alerts before they're published & be first to know.