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Video Game Loot Boxes to Generate over $20 Billion in Revenue by 2025, but Tightening Legislation Will Slow Growth
A new report from Juniper Research has found that revenue generated from loot boxes used in video games will exceed $20 billion by 2025, up from an estimated $15 billion in 2020. However, growth, averaging 5% per year, will be slower than previous years, as consumers become fatigued with loot boxes and legislative constraints limiting the market.
Loot Boxes Legislative Scrutiny Increasing
The report, In-game Gambling & Loot Boxes: Legislation, Market Evolution & Forecasts 2021-2025 Report, expects more than 230 million gamers will buy loot boxes in 2025. Mobile gamers will make up the majority of these, as alternative forms of in-game monetisation, like battle passes and downloadable content packs, are less common in mobile gaming. Overall, we expect approximately 5% of gamers will buy loot boxes that year.
Juniper Research notes that legislation restricting loot boxes, by either classifying them as a form of gambling or banning them outright, will become more prevalent, particularly in Europe. This is leading several publishers to develop new ways of using loot boxes, ranging from ‘transparent’ loot boxes to changing how they are purchased, in order to bypass legislation.
‘Loot boxes in their traditional form are often considered exploitative; leading to increased legislative scrutiny,’ remarked research co-author Nick Hunt. ‘We expect to see game publishers react to this in future by changing loot box formats, in order to keep them compelling and outside the legal realms of gambling.’
Skins Gambling an Ongoing Feature
The report also found that skins gambling, where in-game items are wagered on games of chance or the outcome of eSports matches, will have total wagers worth $321 million in 2025; $100 million more than in 2020, but down from a market high in 2016, due largely to the majority of skins gambling sites being blocked in many countries. Juniper Research expects that gambling will continue until trading platforms prohibit these practices outright, rather than merely limiting them.
Whitepaper download: https://www.juniperresearch.com/document-library/white-papers/loot-boxes-levelling-up-for-new-legislation
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Latest News
PG Soft releases uplifting Skylight Wonders title
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PG Soft, a world-class digital mobile games company, has released its uplifting game, Skylight Wonders.
Skylight Wonder welcomes players aboard a hot air balloon traversing across a dreamlike world high above the clouds. There are increasing multipliers and three reel frames that transform winning symbols into Wild symbols. The three reel frames are on the second row of the third column, the fourth row of the second column and the fourth row of the fourth column.
The 5×5 frame is woven into the balloon’s envelope and is populated with glistening gemstones to deliver a serene gaming experience. A calming soundtrack puts players at ease as they take on the adventure high above the ground.
In the main game, if a winning symbol appears on top of any reel frames, that winning symbol will be transformed into a Wild symbol for the next round. At the start of any main game spin, the multiplier is set at x1. If one or more winning combinations hit, the win is paid and the new symbols cascade down, the multiplier increases by one.
Free Games will trigger when three, four or five Free Spin symbols appear – awarding 10, 15 or 20 free spins respectively.
The feature begins with the multiplier set at x2, and it increases by +2 after each cascade that results in a win. Three or more Free Spin symbols landing anywhere during the feature will award an additional five free spins.
PG Soft’s spokesperson commented: “Skylight Wonders is a light, joyful, and fun game that invites players to join Hayrek aboard the Gemstone Balloon for one final mission. Favourable winds and courage will be the perfect companions on a journey to discover the treasures needed to craft a new future.”
The post PG Soft releases uplifting Skylight Wonders title appeared first on European Gaming Industry News.
Balkans
Bulgaria Plans to Increase Gambling Tax
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After banks helped the Ministry of Finance (MF) fill the budget gap this year, the ministry has chosen another sector to help patch up the deficit in 2026. This sector is gambling, which will pay higher license fees for organising games, according to Economic.bg in the Updated Medium-Term Budget Forecast for the period 2026 – 2028.
It states that with amendments to the Gambling Act, the variable part of the two-component state fee payable for maintaining a license for lotteries, raffles, toto, bingo, keno, and others will be increased as of January 1, 2026.
Currently, the two-part license maintenance fee consists of a one-time fee of BGN 300,000 and a variable part of 20% on the difference between the value of bets received and winnings paid out. For games for which participation fees and commissions are collected, this 20% is imposed on their value accordingly.
For online betting, the one-time fee is BGN 400,000, and the variable part is again 20% on the difference between the bets received and the winnings paid out.
Now, instead of 20%, gambling operators are being asked to pay 25% on the difference. The 5% point increase is expected to contribute an additional €32 million in revenue to the treasury.
“The planned increase in the fees payable by gambling operators is aimed at generating additional revenue for the state budget and thus providing additional funds for social and economic expenditure, which is in the public interest,” the Ministry of Finance said.
It is interesting, however, that the effect of the measure in 2027-2028 has not been calculated.
Temenuzhka Petkova’s idea is actually an old one, left over from the discussions on the 2025 state budget by the caretaker government of former Prime Minister Dimitar Glavchev.
The post Bulgaria Plans to Increase Gambling Tax appeared first on European Gaming Industry News.
Asia
FUN88 Launches AI Game Recommendations, Setting New iGaming Standard
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FUN88, a leading online gaming platform, has introduced its latest breakthrough in the iGaming industry: AI-powered recommendations for slot games. This new feature marks a significant step in enhancing user experience, offering tailored game suggestions based on individual preferences and gaming behaviour.
By analysing user data and local market trends, the AI system recommends popular games tailored to regions such as Thailand and Vietnam, ensuring a more personalised and engaging experience for every player.
Key Highlights of the AI Game Recommendations Feature:
• Personalised Recommendations – AI analyses gameplay history and preferences to suggest slot games that best fit each player.
• Enhanced User Experience – A seamless, customised journey that saves players time.
• Available for Vietnam and Thailand Players – The feature is available to registered FUN88 users in these markets, reinforcing the brand’s commitment to innovation.
• Responsible Gaming Focus – AI technology also supports FUN88’s dedication to safe and responsible play.
This launch marks another step forward for FUN88 in combining technology and entertainment to enhance user satisfaction. The new system not only makes gameplay more convenient and exciting but also aligns with FUN88’s long-term vision of offering safe, smart and enjoyable gaming.
Players can now explore the new AI-powered recommendations by registering on FUN88 or logging in to their accounts. Through the FUN88 app, users can easily access their favorite categories, manage their accounts and enjoy exclusive promotions.
The post FUN88 Launches AI Game Recommendations, Setting New iGaming Standard appeared first on European Gaming Industry News.
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