Loot boxes set to avoid ban in the Gambling Act 2005 review
Decision comes despite the government finding evidence linking loot boxes and problem gambling as working and research groups set to be established
The forthcoming white paper on the Gambling Act 2005 review will not ban loot boxes in video games, despite government research recognising a link between users and gambling-related harms.
Instead, Culture Secretary Nadine Dorries has urged game developers and platforms to take more action regarding loot boxes in video games, shifting responsibility away from the government and to the industry.
The decision comes following a call for evidence on loot boxes launched by the DCMS in 2020, which found that gamers who have purchased loot boxes may be more likely to suffer problems linked to gambling, mental health, finances, and problem gaming, with children and young people at a higher risk than adults.
The DCMS said it was calling for the purchase of loot boxes to be made unavailable to children and young people unless they are approved by a parent or guardian, but stopped short of proposing legislation.
The DCMS said: “Games companies and platforms should provide spending controls and transparent information to all players. Protections should support the minority of players who spend a disproportionate amount of money on loot boxes, and who may be at a greater risk of harm.”
However, the DCMS did not entirely rule out future legislation.
The statement continued: “The government wants to build on this with strong protections for children across the entire games industry and will not hesitate to consider legislation if companies do not bring in sufficient measures to keep players safe.”
The DCMS revealed a new working group, convened by the department would bring together games companies, platforms and regulatory bodies to develop industry-led measures to protect players and reduce the risk of harm.
A new call for evidence to improve understanding of the positive and negative impacts of video games will also be launched in the shape of the Video Games Research Framework.
Dorries said: “We want to stop children going on spending sprees online without parental consent, spurred on by in-game purchases like loot boxes.
“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. Children should be free to enjoy gaming safely, whilst giving parents and guardians the peace of mind they need.”
Jo Twist, UK Interactive Entertainment CEO, said she welcomed this new group, saying that she is keen to work with the government on the issue of loot boxes.
She said: “As a responsible industry, we have committed to exploring additional ways to support players and parents to build on our existing work developing and raising awareness of parental controls.”
“We look forward to engaging closely with the government and other organisations in the working group and on the Video Games Research Framework,” she added.
This revelation comes after the news that the release of the white paper into the Gambling Act 2005 review has been delayed for the fourth time.
This most recent delay is apparently because outgoing Prime Minister Boris Johnson has been advised he cannot pass any new policies or legislation as his time at Number 10 draws to a close.