I fully agree with this, loot boxes are a lottery and are gambling for children plain and simple.
However, it is complicated because this is a sales model that has been used for a long time by things such as the football stickers – you buy a sealed pack of stickers hoping to get the Maradona shiny to complete your book but get ten Teddy Sheringhams instead – so if this passes for gaming loot boxes in games then are football stickers etc. next? And what about those sealed Lego minifigures etc. – you’re paying a fiver for a random chance of getting the one you want. That sounds like a small gamble to me too.
The companies will no doubt argue about it not being as lottery as you do get goods worth the value you pay for every time adn that is what you buy, and therefore there is no monetary stake put down for the random chance of it being a lot better than what you pay for.
But yes, it’s good of The Lords to raise this issue.