GGL calls for stricter rules to be applied to loot boxes
The German regulator has thrown its support behind moves to introduce comprehensive legal regulations in dealing with loot boxes and other forms of gambling-like activities
The German gambling regulator, the GGL, has called on the nation’s federal states to review the use of loot boxes in video games as it looks to comprehensively reform the legal framework and restrict access for children.
The regulator said that simply classifying loot boxes as gambling doesn’t go far enough to protect children and young people as it only represents part of the problem.
Primarily found in video games, including those aimed at children, loot boxes allow players to purchase randomly assigned in-game extras, but many have become concerned about their links to problem gambling.
Loot boxes can be purchased using either real money or in-game funds, with the randomised items within the boxes designed to enhance the gaming experience.
In order to assess what more can be done, the GGL held an expert workshop on loot boxes in February led by Professor Martin Maties from the University of Augsburg and head of the research centre for esports law, and his colleague Dr Lennart Brüggemann.
The regulator said the workshop had provided a “solid basis for further decision making” and confirmed further sessions will take place in partnership with the federal states.
It said it was appealing to authorities across Germany to “intensively examine” the products, in order to “counteract the potential addiction risks of loot boxes for target groups that are particularly worthy of protection”.
The GGL added: “The authority emphasises that the classification of loot boxes under gambling law only represents part of the overall discussion.
“It must also be assessed what options there are for action by the responsible child and youth protection authorities.
“The common goal of everyone involved is the effective regulation of loot boxes to protect children and young people.”
Globally, regulators are becoming increasingly concerned about the potential for video gaming to lead to gambling, particularly with children being a key target audience among games designers looking to include lucrative loot boxes in their games.
The Australian and Belgian governments have already made efforts to restrict the use of loot boxes while the UK government has called on the video games industry to self-regulate.