UK study awarded funding to investigate how loot boxes affect children

Adam Roarty, Senior Editor

Last Updated: 15/09/2026

A study led by Edge Hill University has received £900,000 in funding to investigate how loot boxes affect children. The research will explore how the gambling-like features in games influence the development of primary school-aged children.

Dr. John Shaw, a Senior Lecturer in Psychology at Edge Hill, will lead the study. In a press release last week, Dr. Shaw said that “loot boxes share psychological similarities with gambling and are linked with mental health difficulties in young people.”

Previous research has yet to fully determine how engagement with loot boxes develops over time, how they impact broader psychological development, or which children are most at risk, said the researchers.

The project will run for three years, starting from January 2027. Edge Hill will collaborate with charities including YGam, Internet Matters, and ADHD UK on the study.

Children pressured into buying loot boxes

Edge Hill said that over 90% of UK children aged 5 to 11 play video games with one in three purchasing in-game items, spending an average of £26 per month.

“Coercive pressure is often exerted on children to engage with microtransactions through time-limited availability, rarity and the social desirability of virtual items,” said Dr. Shaw.

“The risks posed by these features may be particularly acute for neurodivergent children, including those with ADHD and autism, who often spend more time playing video games. Generating this knowledge is essential to safeguard children, protect vulnerable groups and promote digital literacy for families navigating increasingly commercialised gaming environments,” he added.

Gaming companies under fire over loot boxes

Gaming companies have come under fire in the US recently over the presence of loot boxes in its games. New York’s Attorney General Letitia James sued Valve in February claiming it promotes gambling to children.

James says that loot boxes in Counter-Strike 2, Team Fortress 2, and Dota 2 are similar to casino games and should be banned.

Valve and Riot Games were among a host of gaming companies that also had to pay around £45 million in compensation to settle a lawsuit in Brazil in June. The lawsuit alleged that the use of loot boxes is severely damaging to young gamers.

Critics claim the random rewards act as a kind of gateway drug, with purchasers more likely to develop gambling problems, including betting on esports, which is becoming increasingly available. GRID last week announced the launch of GRID Odds, an esports betting service for gambling operators.

Loot box games now rated 16 in UK

Researchers also claim that opening loot boxes is linked to a host of other problems, including substance abuse, mental health issues, gaming, and gambling addictions.

As a result, the Pan European Game Information (PEGI), announced an upgrade for games containing loot boxes. From June this year, games with the random purchase features must be rated PEGI 16 or 18.

The UK follows the PEGI rating system.It means games like EA FC, which have previously been rated PEGI 3, could carry a PEGI 16 rating in the next release. Dota 2 currently has a PEGI 12 rating, which is also likely to be upgraded.

The Edge Hill University study is likely to add further evidence against loot boxes, increasing the pressure on the UK government to make stricter rules against their presence in games.

Adam Roarty, Senior Editor

Adam has worked as a writer and editor for five years on sites such as CasinoBeats, OddsChecker, Esports.net, Esports Insider and Gambling Industry News. Adam uses his experience in the gambling and gaming adjacent industries to focus on emerging stories at the intersection of esports, culture and gambling.

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