UK government threatens games industry with new laws for loot boxes

metro.co.uk:

Game companies will need to start regulating themselves over loot boxes, says the UK government, or face legislation.

All the way back in 2017, a petition was sent to the UK government requesting it update gambling laws to include loot boxes. At the time, the government didn’t view loot boxes as a form of gambling, but it looks like its position is beginning to change.

Over the weekend, the government issued a statement to games companies telling them they need to take more direct action to protect children and young people from loot boxes.

While it currently has no plans to go so far as to ban them, as some countries have, it says it will consider legislation if companies don’t introduce sufficient methods of protection.

This has come about following the results of an investigation by the Department for Digital, Culture, Media and Sport. In 2020, it was requesting evidence that proved loot boxes are a form of gambling.

While the government’s statement on the matter doesn’t explicitly call them gambling, it does say that a link was found, with those who purchase loot boxes more likely to experience gambling problems as well as mental health and financial issues.

It also acknowledges that some measures, such as parental controls, have already been implemented by the likes of Microsoft, and that it ‘wants to build on this with strong protections for children across the entire games industry.’

‘We want to stop children going on spending sprees online without parental consent, spurred on by in-game purchases like loot boxes,’ says culture secretary Nadine Dorries.

‘Games companies and platforms need to do more to ensure that controls and age-restrictions are applied so that players are protected from the risk of gambling harms.