I do, generally, think that banning (or legalizing) things in their entirety is often ineffective, and if you just make them entirely and equally illegal/legal you no longer have any levers to stop people making them as toxic as possible. (Look at how insanely pinpoint-targeted at addiction exploitation sports betting has become in the US, for example.)

In this specific case, it's because I don't think you can whack-a-mole things that tickle the addictive feedback loops in people's brains everywhere faster than people can engineer their ways around it or find new ways to exploit things that do those same things without being caught in the laws, so I think you need to both:

- raise the cost of making it too painful for people who aren't self-moderating enough and keep the most lethal edges off it (e.g. ceilings on how much you can spend, making you have to take active action that takes more than a few seconds so you can't impulse-click and blow a fortune on One More Hit, no feedback mechanisms that incentivize spending more when you already spent a lot...)

- limit how harmful it can be to people who are too young and haven't yet learned what it does to them and that they need to be careful (e.g. use something like having access to a credit card you can input on request as a proxy for verifying you're an adult, and try to ensure any of the foam padded Kid Slot Machines(tm) can't be traded in a useful fashion for cash or paid for with cash, even with verification)

In some sense, the original video games with this kind of feedback loop were arcade games - you got a variable amount of reward for your input token, and they had to give you enough to convince you to keep doing it. Microtransactions with lootboxes are just that feedback loop taken to the logical limit, but I don't necessarily think people who hate microtransactions would consider games like that as a similar evil, precisely because, like physical blind boxes, the quantization and scale is so much smaller, and it's so much higher friction to blow a fortune on it.