UK Government won’t regulate loot boxes for now, but says the games industry must take action

UK Government won’t regulate loot boxes for now, but says the games industry must take action
Ben Borthwick Updated on by

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The UK Government won’t be changing the Gambling Act for loot boxes, but has said the games industry must take action or risk future legislation.

The warning comes following the publishing of a report from the Department for Culture, Media and Sport over the weekend. As reported by GamesIndustry.biz, the department’s report said that players who purchase loot boxes are “more likely to experience gambling, mental health, financial and problem gaming-related harms.” However, it stopped short of directly linking loot boxes to gambling.

The DCMS had previously asked for evidence on loot boxes and their effects back in September of 2020. This was to consider whether to bring them under the UK’s Gambling Act, which would put them under heavy regulation and stricter laws. However, after the review, the government has decided against taking this step. “Changing the Gambling Act with regards to loot boxes would have significant implementation challenges and risks of unintended consequences.”

However, the DCMS has called for support for those who’ve spent too much on loot boxes. This includes a working group made up of games companies and industry bodies, with their remit to develop ‘industry-led measures’. While specifics haven’t been given, these could include additional parental controls and making more information available.

The government has also admitted there is a need for better evidence to understand video games. In fact, it said the response to the player survey was “not representative of the UK gaming industry”. However, it has provided a “valuable insight” into the perspective of many players. With it noting that 98% of responders said that they’d opened a loot box.

You can read the full loot boxes report from the UK Government’s Department for Culture, Media and Sport here.