May 11, 2025 5 min read

Mystery boxes have always appealed to the masses due to the element of the unknown associated with them. Naturally, with the rise of digital mystery boxes, it comes as no surprise that they are gaining immense popularity as well. Simply put, digital mystery boxes are similar to the traditional version except that all the items within the box are virtual.

For example, when purchasing an in-game mystery box, you could receive avatar skins for a character or even weapon upgrades. The main factor is that it is still a surprise. With this in mind, it becomes reminiscent of placing a bet and gambling on the outcome, which begs the question: Should mystery boxes adhere to U.S. gambling laws?

The Appeal and Mechanics of Digital Mystery Boxes

As eSports betting and gambling expert Viola D’Elia discusses, mystery boxes are appealing because buyers can win top-quality, unexpected prizes. Both traditional and digital mystery boxes can offer players prizes at a fraction of the retail price, making them even more appealing. With digital mystery boxes specifically, there are a few different types. In-game mystery boxes usually contain game-specific items that can range from rare to common.

On a psychological level, these can appeal to buyers for several reasons, including the thrill of the unknown. This creates the illusion of perceived value despite big wins being rare, which still encourages spending. Some boxes contain collectibles, or even digital assets like crypto tokens. Buyers might also be intrigued by the prospect of winning a high-value prize or the social aspect of trading or showing off.

However, the concept of winning a certain prize based on chance and luck is what has boosted these boxes to popularity. In turn, it is also the factor that sparked the debate on whether mystery boxes challenge U.S. gambling laws.

The Gambling Debate: Similarities and Differences

When compared to gambling, mystery boxes have many similarities and differences. If one were to classify mystery boxes as a form of gambling, one could look at how they are purchased. Ultimately, buyers are paying money for the chance (it is not guaranteed) of winning something valuable.

Here, the prize the buyer receives is based on chance and could either be valuable or useless. When comparing this to gambling, it alludes to the presence of a ‘house edge’. Of course, the operators (to an extent) know what items buyers receive, whereas buyers are solely guessing. This slightly sets mystery boxes apart from traditional gambling.

Another way digital mystery boxes differ is the lack of real-world value that many items have. This has been debated, however, as there are secondary markets where buyers can sell such items and gain money back. There is also the fact that regulatory frameworks may not apply to digital assets unless there is value tied to them (think sweepstake casinos, for example).

Lastly, digital mystery boxes have a wide audience they appeal to. However, it seems operators are targeting an audience that cannot legally gamble. Therefore, if digital mystery boxes had to adhere to gambling laws, those individuals would no longer be able to purchase them.

Navigating the Legal Landscape in the U.S.

Within the current U.S. gambling legal sphere, while federal laws establish the framework, gaming authority is granted to individual states. This means each state fully controls any form of gambling within its jurisdiction, including which type of gaming falls under a particular law.

The overall framework classifies gambling into three core elements: consideration, chance, and prize. Initially, this description perfectly aligns with what makes up a digital mystery box. The evolving digital economy and the intangible nature of mystery box prizes complicate things.

As it stands, no federal law specifically bans the trade and purchase of mystery boxes. Digital mystery boxes, specifically, usually fall in the category of ‘loot boxes’, which are usually purchased in-game. When looking at NFT mystery boxes, however, one could argue that these assets hold monetary value. In turn, this could warrant some form of regulation as it more accurately aligns with gambling elements.

The Role of Regulatory Bodies and Potential Future Directions

Ultimately, the best course of action is to vary approaches to regulations surrounding digital mystery boxes. Those wherein buyers win prizes that have no real-world value would remain unregulated. In comparison, digital mystery boxes that offer prizes with real-world value or could be traded for such should be regulated.

The concept of a digital mystery box is generally not categorized as gambling, except in certain situations. Therefore, a circumstantial approach with varying degrees of regulation would make sense. For example, NFT and crypto mystery boxes complicate this as the prizes would hold real-world value regardless of the size or amount.

Conclusion

Overall, there are many components to classifying mystery boxes as gambling. Does it challenge U.S. gambling laws? There is no clear-cut answer, considering some boxes do offer monetary prizes. However, this will remain a topic of debate due to the overlapping factors, including digital rewards and chance.