Dangers of gaming 'loot boxes' outlined

An official House of Lords publication outlines the dangers of so-called 'loot boxes' in video games, which are thought to increase the risk of young people taking up gambling.

Loot boxes are items within computer games that are accessed either through game play or are purchased with in-game virtual currencies or with real-world money.

The contents of loot boxes can range from new characters to weapons, armour, or ‘skins’ that change the appearance of characters in a game, with rewards often randomised.

The Lords document, published last week, notes that: "Concerns have been raised about whether the purchase of loot boxes is like a ‘game of chance’ and therefore a form of gambling."

In 2016, the Gambling Commission identified loot boxes as a potential risk to children as part of a wider review of gaming and gambling supposed to inform policy-making.

Three years later, the House of Commons Digital, Culture, Media and Sport Committee published a major report ‘Immersive and addictive technologies’.

The report discussed financial harms associated with online gaming, including gambling-like behaviours and noted “structural and psychological similarities” between loot boxes and gambling.

In response, the UK government launched the call for evidence in September 2020. The Johnson government published a response to the loot box consultation in July 2022, concluding that:

• purchases of loot boxes should be unavailable to all children and young people unless and until they are enabled by a parent or guardian
• all players, including children, young people, and adults, should have access to, and be aware of, spending controls and transparent information to support safe and responsible gaming
• better evidence and research, enabled by improved access to data, should be developed to inform future policy making on loot boxes and video games more broadly

These changes were delayed amid leadership turmoil in the Tory Party. It remains to be seen whether loot boxes will be tackled by the current government as part of a wider review of gambling laws.

A spokesman for CARE, which campaigns for gambling reform, said:

"We note the evidence heard by parliament that loot boxes can be problematic and the previous government's commitment to regulate in this area, amid a wider overhaul of gambling laws.

"Children and young people are clearly considered to be a target market by betting companies and it is right that proportionate steps are taken to safeguard them from harm.

"A whitepaper on gambling reform is long overdue. We call on Liz Truss to accelerate this document so that parliament can get to grips with it, and bring positive change."