The UK Government has announced that it will not take action to prohibit the use of loot boxes in video games as part of the expected overhaul of the country’s gambling laws.
Research has linked loot boxes with excessive spending that could lead to problem gambling in minors
Campaigners have demanded that loot boxes, which are often marketed towards minors playing online games, encourage reckless behaviour that is linked to problem gambling. This is because those who purchase loot boxes do so without knowing what is inside, a practice which campaigners say is tantamount to gambling. However, the UK Government has revealed that it does not intend to restrict the sale of loot boxes in an update issued yesterday.
“The call for evidence has shown that loot box purchases may be linked to a variety of harms. In particular, there is robust evidence of an association with problem gambling. However, research has not established whether a causal relationship exists between loot box purchases and problem gambling and there are a range of plausible explanations that could underpin this association.”
The update went on to add:
“After careful consideration, the government does not intend to amend or extend the scope of gambling regulation to cover loot boxes at this time. In doing so, we have considered regulating loot boxes as gambling as one means of achieving some of our objectives to mitigate the risk of harms for children, young people and adults, and have concluded that it would come with significant limitations which make other policy solutions to achieve the same ends preferable.”
The government has suggested that a voluntary, industry-led approach would be preferable which would limit the availability of loot boxes to minors based on parental restrictions. However, game developers such as EA have previously likened loot boxes to Kinder Eggs where purchasers get a surprise inside.
Child Commissioner response
In response to the government’s update, The Children’s Commissioner has released a statement:
“The Children’s Commissioner’s Office has previously reported on how loot box features can encourage children to spend excessively online to advance to further stages of games. Children have told us that buying loot boxes feels like gambling, and they worry about the impact of loot boxes on encouraging compulsive spending.
The Children’s Commissioner believes that the Government should listen to children and parents to take firm action to prevent under-18s from buying loot boxes. Relying on voluntary industry action and on parental controls will leave many children exposed to the financial and psychological harms of loot boxes.”
Image credit: Sameboat / CC BY-SA 4.0
Olivia has worked as an editor and writer for major brands across multiple niches. She now focuses on the iGaming and sports betting industries.