GambleAware urges legislative action over loot boxes – Legal & compliance

GambleAware has urged the UK government to take legislative action regarding loot boxes in video games, emphasizing the need for enhanced protections for children and young people.

Recently, the government released findings from an evidence-gathering call initiated in September 2020, aimed at exploring public opinion on how to effectively address these in-game mechanisms.

Loot boxes enable players to spend real money to acquire a box, which contains random rewards. These can range from functional power-ups that enhance gameplay to purely cosmetic items like virtual outfits.

The Department for Digital, Culture, Media and Sport (DCMS) did not implement an outright ban on loot boxes but urged game developers to enhance player protections. This reflects a growing acknowledgment of the potential risks associated with such features.

In its response to the white paper, GambleAware expressed encouragement at the government’s recognition of the risks posed by loot boxes. Notably, 40% of children who engage with video games utilize loot boxes, a trend that GambleAware believes normalizes gambling-like behaviors among youths.

The organization calls for the incoming government, expected to be announced soon after former Prime Minister Boris Johnson’s resignation, to consider legislative measures aimed at curbing access for minors. “Research indicates that loot boxes resemble gambling in psychological terms; thus, more robust protections are essential to mitigate future gambling-related harms,” the charity stated.

“Gambling is increasingly ingrained in the daily lives of children and young people, with heightened vulnerability to gambling-related issues stemming from both personal participation and exposure to others’ gambling behavior,” it further elaborated.

According to the National Audit Office, approximately 55,000 children aged 11 to 16 in the UK face gambling harms, with an additional 85,000 identified as at risk. GambleAware insists that more definitive actions are needed to safeguard this demographic.

“We are keenly awaiting the release of the Video Games Research Framework later this year, which we hope will provide a basis for legislation aimed at protecting children and young individuals from gambling-related harms linked to video games.”

This call for action is further amplified by Dame Rachel de Souza, the UK Children’s Commissioner, who recently labeled loot boxes in video games as “inappropriate,” advocating for their inclusion in the gambling definition under the UK Gambling Act.

De Souza argued that Clause Six of the Gambling Act should be expanded to encompass loot boxes, thus subjecting them to regulatory scrutiny and safeguarding measures.