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Mystery boxes or loot boxes, as they are also known in gaming, can be the cause of much excitement or frustration for gamers. What started as fun has now become the subject of much controversy and legal debate worldwide.

Which term you use typically depends on the type of game, but essentially, they are the same thing: in-game items with supposedly randomized, surprise rewards. Mystery boxes can either be free or bought with real money. Mystery and loot boxes provide a core way for companies and independent developers to monetize gameplay, especially in free-to-play mobile games.

The appeal of mystery boxes 

Mystery and loot boxes are very popular in free-to-play mobile games. Just the animation – the locked chest being cracked open with an ethereal light shining from beyond the known, out of which your prize appears – is almost worth the money spent.

Mystery boxes can be either paid or free. Free mystery boxes are typically awarded to new players in mobile games. However, they have also become a standalone form of entertainment where players can participate at specialist mystery box sites, either through free drops or paid ones that generally come with major prizes for those lucky enough to draw them. 

The thrill of opening a box can be compared to that of game trading cards or scratch cards, and that is why players love it so much. Some games also have gifting systems where you can send boxes to fellow players and make friends or share box rewards with teammates.

For developers, including mystery boxes offers a way to earn an income from the games they create – a much better strategy than having gaming interrupted with annoying videos. Randomized rewards keep gamers hooked with the possibility that the next box will be that rare skin or extra lives they’re looking for.

The rise of mystery and loot boxes in mobile co-op games

The roots of loot boxes and mystery rewards in today’s mobile gaming lie in the prize mechanics and gacha (randomized reward) systems in early mobile gaming titles. Loot boxes were first used in Asian MMORPGs and F2P mobile games to guarantee income, as many players couldn’t afford full-priced games.

The name “gacha” comes from gachapon, referring to the Japanese toy machines dispensing random capsules with a toy inside when you insert money. Over time, these lottery-like mechanics evolved into complex algorithmic systems linked to the tailoring of rewards based on the level and preferences of the player.

Some of the rewards are purely aesthetic, like new skins for your city or exclusive outfits for your character. But in RPGs like Raid: Shadow Legends, the “shards” you use to summon heroes to your teams can give you a distinct advantage in battles.

Loot and mystery boxes are expected to generate over $20 billion from video games in 2025. But players are getting tired of having to pay, and the strategy has been widely criticized as a “gateway” to gambling, especially for children.

Why loot boxes are being regulated

Unfortunately, many boxes mimic gambling and provide uncertain outcomes, posing a real threat to kids and people vulnerable because of their addictive natures or susceptible to peer pressure. Many companies use gacha algorithms and intricate, hidden code to exploit these vulnerable groups. Becoming addicted to the thrill of the box can result in potentially catastrophic money loss, and “random” has become very relative, with the odds mostly against the one opening the box.

Regulation and legislation vary greatly in different countries, and no regulation of the practice has yet been implemented in the UK and the USA. Some countries, like Belgium, have implemented very severe regulations, in fact banning loot boxes completely, as it is seen as gambling. Other measures include forcing app stores to make drop rates public (Apple App Store in 2017, and Google following in 2019).

Current trends and the future of loot boxes

Three current trends in 2025 seem to be shaping the way forward for mystery and loot boxes. Developers are trying to avoid “pay-to-win” complaints, limiting mystery boxes to cosmetic items such as skins and avatar frames.

There is also a push towards increased transparency, where players can see loot boxes before buying them, or using blockchain technology to make rewards truly random and open to scrutiny.

Finally, the battle pass model, introduced by Fortnite in 2018, replaces randomness with challenge-based progression and visible rewards, creating a more ethical game.