Brazil Bans Loot Boxes for Under-18s as Part of Sweeping Digital Protection Law

Brazil has officially banned loot boxes for anyone under 18, with the law set to take effect in March 2026. President Luiz Inácio Lula da Silva signed these measures as part of a broad digital protection package designed to safeguard young people from harmful online practices.

While loot boxes are the headline change for gamers, the law is much wider in scope, covering everything from age verification and privacy to parental controls and online safety measures.

What does the new law cover?

The law applies to any information technology product or service directed at or likely to be accessed by minors (under 18), regardless of where it's developed or operated. Key provisions include:

Age Verification & Access Control

• Suppliers must implement trusted age verification mechanisms (self-declaration is prohibited)

• Operating systems and app stores must assess users' ages and provide age signals to applications

• Content inappropriate for minors (pornography, etc.) must be blocked from their access

Privacy & Data Protection

• Products must use the most protective privacy settings by default

• Profiling for targeted advertising to minors is prohibited

• Personal data can only be used for its stated purpose

Parental Supervision

• Suppliers must provide accessible parental control tools

• Parents can view, configure, and manage children's accounts, restrict purchases, monitor usage time, and control content access

Content Restrictions

• Suppliers must prevent access to content involving: sexual exploitation/abuse, violence, bullying, self-harm promotion, gambling, drugs, alcohol, and pornography

• Loot boxes in video games for minors are prohibited

• Monetization of content portraying children in sexualized ways is banned

Social Networks

• Accounts of children up to 16 must be linked to a parent/guardian account

• Providers must remove accounts operated by underage users who don't meet minimum age requirements

Transparency & Reporting

• Providers with over 1 million registered minors must publish semi-annual reports in Portuguese

• Must provide mechanisms for reporting violations

• Must remove violating content when notified by victims, representatives, or authorities

An autonomous administrative authority will oversee compliance and can issue regulations. Violations can result in warnings, fines up to 10% of revenue (capped at 50 million reais), temporary suspension, or prohibition of activities.

How does this compare to other countries?

Loot boxes have been a controversial issue worldwide for over a decade. Belgium was among the first to take strong action, banning them outright in 2018 after its Gaming Commission determined they violated gambling laws. The move was celebrated at the time, though in practice enforcement has been inconsistent, with some publishers continuing to operate without major consequences.

In the Netherlands, lawmakers supported a ban in 2022, framing loot boxes as a form of gambling. However, attempts to enforce penalties against companies like EA for FIFA’s card packs were overturned in court. Spain has also studied regulation, while the UK has mostly focused on requiring companies to disclose loot box mechanics rather than outlaw them.

In the United States, loot boxes remain in a legal gray area; they are not outright banned at the federal level, but they are under growing scrutiny and regulation at the state level. States such as Washington and California have introduced bills that call for mandatory odds disclosure, age restrictions, and reporting systems to improve transparency. On the industry side, the ESRB requires any game featuring loot boxes to display the label “In-Game Purchases (Includes Random Items).” Meanwhile, the Federal Trade Commission (FTC) has taken a firm stance against deceptive practices. In one notable case, the agency settled with Genshin Impact publisher Cognosphere (HoYoverse), issuing a $20 million fine and ordering the company to prevent players under 16 from purchasing loot boxes without parental consent.

Asia also plays a big role: Japan banned the exploitative kompu gacha mechanic in 2012, South Korea passed its Loot Box Probability Disclosure Law in 2024, and regulators there have already fined Nexon for hidden odds in MapleStory.

Will enforcement make the difference?

The effectiveness of Brazil’s ban will likely hinge on enforcement. Belgium’s example shows how a law on paper may not translate into real change if oversight is lax. Many gamers also question whether underage players will be able to bypass restrictions through account manipulation or by purchasing from international marketplaces.

For publishers, compliance could mean removing loot boxes entirely from their Brazilian versions or restricting them to adult-rated games. That may be easier said than done, given how central loot boxes remain in some business models. Still, the law forces companies to rethink their approach in one of gaming’s fastest-growing markets.

The loot box ban comes alongside a striking policy shift: in 2025, Brazil legalized casinos, sports betting, and online gambling for adults after decades of prohibition. The government argued this move would generate billions in tax revenue, jobs, and tourism.

The contrast is hard to ignore. On one hand, loot boxes in gaming are deemed harmful enough to ban for minors. On the other hand, traditional gambling is being normalized and expanded for adults.