In April 2018, Belgium has declare a Ban on lootbox on certain games with UK follow thru shortly. Now US and Australia is looking into this matter of loot box as well.
What is Loot box / Crate?
Loot boxes which gave random items or reward is seen as a norm in recent Online and mobile games. These loot box /crates would give you some advantage in your experience of your gaming experience.
Why game developer create Loot box?
The answer is the simple. To get more income and not just more income like one time purchase of DLC but more constant income as loot box can be anytime as long the gamer "invest" in that game.
Because it is random (although I highly doubt it is as the success rate already written into the development like placing the percentage of getting a rare item or characters), players would try and try again to get what they want.
By the time the player realized the game is not that fun after all, he/she may have paid a certain amount of money he actually intended. Then the game level increase and more new releases to tempt the player to get the more rare "reward".
As they are real money involved, this random loot box is like gambling such as buying lottery.
Is Loot box Micro Transaction?
To clarify that Loot box is not equal to micro transaction as micro transaction is straight forward that you know what you are buying and will get what you spent with your money.
Why Loot box is Illegal?
Loot box on the other hand is an uncertainly of what you are getting even you paid for that amount. On that basis, that is consider as gambling which is against the law depending on which country you are in.
As games are open to younger players, some of them are below legal age to expose to gambling. Having such exposure is not good for them as they may spent money which likely are not theirs and cultivate the gambling habits in a way.
Gacha is the same as Loot box
For Japanese game company, they call loot box with another name as "Gacha". Some of such games would give you daily ticket or let you play to earn points and over a period of time you can get to try one time of the "Gacha". If you cannot wait or actually grind in the game, then you pay money to get chances to go for Gacha.
Most Loot box only work if you are playing with a community as not to lose out and want to stand out with a different rare item, players would pay more to TRY to get what they want.
As a gamer, I have some experience with such games. While it certainly did not stop me from playing the game, it certainly enhance my experience with the game if I go for the reward in the loot box. Nonetheless because it cost real money, I do feel the temptation of making the emotional decision is high to get the rare items or characters in the game.
If I play the game long enough to know I have to spend more money to have a happier experience, it would likely I drop the game as it lost it meaning.
End of the day I think it is good that there are regulation especially there are young kids playing the game.
As to the game developers, you need to make more quality game rather than depending loot box sales and lazy DLC.