Loot boxes in video games will not be banned in the UK, despite a government consultation finding evidence of a “consistent” link between the features and problem gambling.
Loot boxes have drawn comparisons to gambling because they allow players to spend money to unlock in-game rewards, such as special characters, weapons, or gear, without knowing what they will receive.
The features, popular in games such as Call of Duty and the Fifa soccer series, were effectively banned in Belgium in 2018, but Culture Secretary Nadine Dorries said the UK would not follow suit.
Instead, after a 22-month consultation, she said the government would discuss tougher “industry-led” protections with the UK’s £7bn gambling sector, drawing accusations from one expert that “the foxes are guarding the hen house”.
Legislation to restrict or ban loot boxes as part of an expected overhaul of UK gambling laws could have “unintended consequences”, Dorris said.
“For example, legislation to introduce an outright ban on the purchase of loot boxes by children could have the unintended effect of more children using adult accounts and thus having more limited parental supervision over their games and spending,” the government said in response to an advisory posted in the early hours of Sunday morning.
The government also concluded that although there was a “robust and consistent” link between loot boxes and problem gambling – identified in 15 peer-reviewed studies – it could not be certain that there was a causal link.
“It is our view that it would be premature to take legislative action without first taking enhanced industry-led measures to ensure protection for children and young people and all players,” it said.
Another factor in the decision is that loot box rewards cannot legally be exchanged for real money, meaning players cannot in theory “cash out” as they could when gambling.
However, the Gambling Commission has previously warned that third-party sites allow people to exchange the prizes for real money.
While the Department for Digital, Culture, Media and Sport (DCMS) stopped short of proposing legislation, Dorries said: “Children and young people should not be able to buy loot boxes without parental approval.
“In addition, all players must have access to cost controls and transparent information to support their games.”
Ministers are expected to pursue tougher restrictions through talks with the UK video games industry. This will be done through a working group that is scheduled to deliver its first update in the first three months of 2023.
“We expect gaming companies and platforms to improve protections for children, young people and adults and tangible results will start to be seen in the near future,” DCMS said. “If this does not happen, we will not hesitate to consider legislative options if we deem it necessary to protect children, youth and adults.”
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Dr David Zendl, a video games expert at the University of York, criticized the decision, saying: “Previous select committee investigations have shown unequivocally that certain bad actors in the video games industry cannot be trusted to self-regulate when it’s about protecting the players.
“By making these same industry bodies the ones responsible for regulating loot boxes, DCMS is essentially ensuring that the foxes are the ones guarding the hen house.”
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