Loot boxes provide randomized rewards in video games. The People’s Republic of China (PRC) is the first and only jurisdiction to require video game companies to include probability disclosure statements. A disclosure statement outlines the likelihood of obtaining certain rewards from a loot box. The researchers examined the prevalence of paid loot boxes in the PRC and how companies interpreted the probability disclosure regulations in the PRC. Loot boxes were found in 91 of the 100 highest-grossing iPhone games in the PRC. Loot boxes were also found in over 90% of games that were rated as suitable for children aged 12+. Probability disclosures were not found for 4.4% of games that had loot boxes. Companies included probability disclosures in different ways. Some companies included disclosures both in-game and on the games’ official website. But very few companies (5.5%) included the disclosures in the most visible way possible (i.e., automatically displayed on the in-game loot box purchase page).
