Christopher Dring
Head of Games B2B
Monday 18th July 2022
So, after all the interviews and surveys and research and committee hearings, all the 'surprise mechanics' memes and hyperbolic tweets full of false equivalence ("They're just like football stickers"... "They're basically casinos")... After all that, the UK Government has done what any parent would when faced with two squabbling children: shout "just sort it out would you?" and close the door.
The UK Government was always unlikely to legislate against loot boxes. For one, the video games industry contributes nearly £3bn to the UK economy, which is more than double the fishing industry (and if Brexit has taught us anything, fishing must be one of the most important industries in the world). It understandably doesn't want to meddle in one of the UK's fastest growing sectors.
Legislating against loot boxes is also going to be expensive. If the Government did decide that loot boxes are a form of gambling, then it would require a massive expansion of the Gambling Commission. The NERA Economic Consulting 2021 Report estimated that it would almost double the Commission's annual costs. Meanwhile, the communications regulator Ofcom, which could help here, have their hands tied by the ongoing farce that is the Online Safety Bill.
So people are too busy and it's too costly... let's just forget about it, yeah?
I am being facetious. But amongst all those bad reasons for not legislating loot boxes, there are real reasons, too.
The loot box research that keeps getting quoted doesn't go deep or far enough
For one, the loot box research that keeps getting quoted doesn't go deep or far enough. Are all loot boxes as bad as one another? There's evidence that loot box customers are more
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