A 22-month consultation has found evidence that links loot boxes in video games with problem gambling, but the UK government have decided against a ban.
The UK Department for Digital, Culture, Media and Sport (DCMS) made the call for evidence on loot boxes in video games in September 2020, and after posting their findings on Sunday, they have called for companies to bring in measures to keep young players safe. This outcome means that loot boxes won't fall under review of the UK's sweeping Gambling Act, but the government have called for loot box purchases to be made unavailable to all children and young people unless enabled by a guardian and for all players to have access to spending controls.
Loot boxes are a feature within video games that involve the opening a mystery box or pack, that can be obtained through the use of in-game currency or real-life money. When opened in a game like FIFA 22, in the popular Ultimate Team mode, the loot boxes or packs contain a random collection of in-game player items. Depending on the type of pack or loot box opened within FIFA Ultimate Team, the percentage chance of obtaining rare player items can change dramatically, which has seen the mechanic being compared to gambling.
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In 2018 Belgium banned loot boxes after the Belgium Gaming Commission found that they are "in violation of gambling legislation".
DCMS Secretary of State, Nadine Dorries, has opted against banning loot boxes in the UK at this time but has threatened that the UK won't hesitate to consider legislation if proper measures aren't put in place, putting the onus on game developers to act.
Dorries said: "As the evidence base on loot boxes is still emerging, and direct government intervention may risk unintended consequences, our view is that it would be premature to take legislative action without first pursuing enhanced industry-led measures to deliver protections for children and young people and all players.
"As a result, the government does not intend to make changes to the Gambling Act or to other statutory consumer protections with regards to loot boxes at this time.
"It is particularly important that children and young people are protected. In response to our findings, our view is that children and young people should not be able to purchase loot boxes without parental approval. In addition, all players should have access to spending controls and transparent information to support their gaming.
“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.”
The consultation identified a "stable and consistent association between loot box use and problem gambling", with evidence showing that "greater loot box spending is related to greater problem gambling severity harms". It was concluded by the government that while there was “a stable and consistent” link between the loot boxes and gambling addictions but "research has not established whether a causal relationship exists".
According to the government's consultation outcome, most loot boxes do not meet the definition of gambling under the Gambling Act 2005, as the prize is confined for use within the game and cannot be converted into real-world money.
Dr Jo Twist OBE, CEO of Ukie 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."
EA previously told Mirror Football that they disagree that there is a gambling element in FIFA.
"We also firmly disagree that FIFA or any of our games involve gambling. Regulators in multiple countries around the world have stated publicly that where there is no cashout method, loot boxes do not constitute gambling."
Daily Mirror has contacted EA Sports for comment regarding the UK Government's consultation outcome from the call for evidence on loot boxes in video games.
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