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The Digital, Culture, Media and Sport Committee has concluded that loot boxes should be regulated under UK gambling law, as reported by GamesIndustry.biz.
Collecting evidence over a nine month period, the DCMS produced an 84 page report into immersive and addictive technologies, and among its recommendations were that loot boxes should be contained within gambling regulations. Previously, Gambling Commission chief executive Neil McArthur stated that video game loot boxes are not classified as gambling, although they pose ‘significant concerns’. Now, DCMS chair Damian Collins MP has challenged that stance with this report.
‘Gaming contributes to a global industry that generates billions in revenue,’ said Collins. ‘It is unacceptable that some companies with millions of users and children among them should be so ill-equipped to talk to us about the potential harm of their products.’ The DCMS suggested that if the Gambling Commission wishes to defend its perspective that loot boxes are not gambling, it should create its own paper with its own evidence to support its conclusion.
Moreover, the DCMS report stated that there should be a ban on loot box sales to children. Citing examples of children and teenagers spending huge amounts of money on Clash of Clans, Fortnite and FIFA, the report said that ‘gaming is several years behind gambling in relation to protecting the vulnerable.’ The industry is blamed for using inconsistencies around age-rating systems to permit children to access loot boxes and casino-style features, and considered there to be a ‘lack of honesty and transparency’ among social media and game company representatives.
Dr Jo Twist, CEO of the UK’s trade body for the games industry Ukie, responded to the report recommendations. ‘We are pleased the Committee acknowledges that the majority of people play video games in a positive, safe and responsible way. The industry does not dispute that, for a minority, finding balance is a problem,’ she said. ‘This is why we are vocal in supporting efforts to increase digital literacy and work with schools and carers on education programmes.’
In Belgium, loot boxes violate the country’s gambling laws and must be removed. The Netherlands gaming authority Kansspelautoriteit requires loot boxes to be ‘addiction sensitive’ by removing aesthetics and preventing players from opening one loot box after another in quick succession.
