UK Officials Call for Loot Boxes to be Regulated as Gambling

13.09.2019, 15:55

Regulators in both the UK and the US have investigated loot boxes in video games after the link between loot boxes and gambling has emerged, and are asking the government to put measures that will regulate them. Just like any other gaming operations, loot boxes should be included in the gambling act to make it safe for kids. A press release from the UK government department of Media, Culture, Digital and Sports committee has condemned gaming industry representatives for lack of transparency and honesty concerning the potential harms of games like loot boxes. Further report recommends that all the games comprising loot boxes to be regulated like gambling, and children should be banned from buying them.

A report from 2018 Gambling Commission Survey reveals that 31% of minors aged 11-16 have used in-game items or paid money for opening loot boxes. An example of this is FIFA series, a franchise that makes about half of its money from loot box mechanics. FIFA has an enhanced system that ensures the rewards won in one game is not transferrable to the next series. This makes people use more money if they wish to continue with the game. Report shows that people spend a lot of money on these games, and an example of this is a gamer that spent £800 to £1000 in a year on these FIFA cycles.

Studies have shown that teenagers are vulnerable to developing gambling habits. Experts say that loot box mechanics can take advantage of one’s psychology and expose people to gambling.

Representatives from EA have responded to the UK parliament on the issue of loot boxes, and it did not end well. A response from the representative stated that they call loot boxes “surprise mechanics,” and they are “actually quite ethical and quite fun.” Even though one MP declared that loot boxes are not gambling, the rest of the committee was not convinced with the response, and they insist that loot boxes contain elements of chance that are not safe for children playing games. The committee still insists that loot boxes should be considered gambling, and the corresponding gambling laws should apply to them.

These recommendations from the committee are yet to be enacted to become laws, and the UK government is in the process of considering the proposals and apply gambling laws to loot boxes.