Loot boxes are officially being investigated in Brazil as a form of gambling.
The Esports Observer reports that the enquiry has been launched after the National Association of Child Adolescent Defense Centers (ANCED) insisted loot boxes in Brazil should be banned.
In Brazil, gambling is illegal so if loot boxes would be so defined, they would also be banned.
A number of high profile companies are being questioned over the use of loot boxes, including Activision, Riot Games, Electronic Arts, Konami, Nintendo, Tencent and Ubisoft.
Meanwhile, as reported by The Enemy, mobile games specialist Garena has been asked to halt the commercialisation of loot boxes within its games.
Should the proposed ban be passed in Brazil, companies will face a daily fine of up to BRL $4 million (approximately $716,000).
Many countries have taken an issue with loot boxes. Currently, the UK is investigating the in-game purchase option to determine if it should be regularised as gambling.
Meanwhile, Belgium opted to require a gambling licence for companies operating loot boxes back in 2018, and games in Germany that feature the mechanic may be given an 18+ age rating.