New York Moves to Restrict Loot Boxes On Youth Gaming Sites
New York has moved closer to reshaping how digital gaming platforms engage with minors, proposing legislation that would restrict loot boxes and strengthen online safety protections for children. The initiative places renewed scrutiny on platforms popular with younger audiences, including Roblox, and reflects a wider regulatory push to address gambling-like mechanics in digital entertainment.
The proposed measures are part of a broader child protection agenda led by Governor Kathy Hochul, focusing on financial risk, online exploitation, and data privacy. Loot boxes, which allow users to spend real money for randomised digital rewards, have drawn criticism for mirroring gambling behaviour, particularly among minors who may not fully understand odds or spending limits. While platforms argue that users always receive an in-game item, critics point to the chance-based structure and potential for repeated spending.
Under the new proposals, digital platforms would be required to implement robust parental controls, including spending limits, purchase approvals, and clearer notifications for account holders. Age verification systems would also become mandatory to prevent children from bypassing safeguards. In parallel, stricter privacy and communication rules would apply to under-18s, with default limits on messaging from strangers and location-sharing features.
Attorney General Letitia James has publicly criticised gaming platforms for failing to adequately protect minors, citing cases involving inappropriate contact and exploitation. Roblox, which operates using its virtual currency Robux, is already facing legal pressure through class action lawsuits alleging that its monetisation model promotes gambling-like behaviour among children. The outcomes of these cases could influence how similar platforms structure in-game economies.
The legislative push builds on earlier actions by the state, including smartphone bans in schools, expanded mental health initiatives, and tighter controls on how companies collect and sell children’s data. Lawmakers argue that digital platforms should be regulated with the same level of care as other products designed for children, such as toys or food.
iGaming Today News observes that while the proposals are state-led, their implications extend far beyond New York. US states have increasingly acted as regulatory bellwethers, setting standards that technology and gaming companies often adopt nationally to maintain consistency and manage risk.
As the legislation package is expected to be formally introduced when lawmakers reconvene, gaming operators, suppliers, and platform owners will be watching closely. If enacted, the measures could accelerate a wider rethink of youth-facing monetisation strategies across the global gaming industry.
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