From the Oxford English Dictionary:
loot
Pronunciation: /lu?t/
noun
[mass noun]
private property taken from an enemy in war:
the rooms were stuffed with the loot from Francis’s expeditions into Italy
stolen money or valuables:
the gang escaped with their loot
informal money:
ten thousand quid is a lot of loot
verb
[with object]
steal goods from (a place), typically during a war or riot:
police confronted the protestors who were looting shops
steal (goods) in a war, riot, etc.:
tonnes of food aid awaiting distribution had been looted
Indian steal (something) from someone:
a gang looted Rs. 1.5 lakh from a passenger
If you take an item from a person or creature you killed in combat, that item is loot. If you find an item in a chest after killing people and/or creatures in a dungeon, that item is also loot. If you have to craft the item yourself, that item is not loot.
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