UK government calls for stricter regulation on loot boxes in esports industry

DCMS in 2020 initiated a call for evidence on loot boxes, a feature in esports where players can buy virtual boxes containing random items such as power-ups and cosmetic items. Concerns have been raised about the similarity of loot boxes to gambling, as players take the risk of spending real money without knowing what they will receive in return. The call for evidence discovered that purchasing loot boxes can lead to gambling-related issues, mental health problems, financial harms, and problematic gaming behavior, with children and young people being more at risk. Some game developers and platforms have already taken steps to enhance player protection, like implementing options that require parental permission for under-18s to make in-game purchases. However, DCMS aims to strengthen these protections across the entire gaming industry and may consider new legislation if developers do not implement sufficient measures to ensure player safety. The government department will encourage games companies and platforms to provide spending controls and transparent information to all players, with a focus on protecting the minority of players who excessively spend money on loot boxes and are therefore more vulnerable. To achieve this, DCMS plans to establish a new working group consisting of game developers, platforms, and regulatory bodies to develop industry-led measures for player protection and risk reduction. Possible measures may involve parental controls and making transparent information readily available to all players. The call for evidence also highlighted the need to improve understanding of both the positive and negative impacts of video games. In response, DCMS will launch a Video Games Research Framework to support further research in this area. “We want to prevent children from engaging in online spending sprees without parental consent, driven by in-game purchases like loot boxes,” stated Culture Secretary Nadine Dorries. “Games companies and platforms need to do more to apply controls and age restrictions to safeguard players from gambling-related harms. We want children to enjoy gaming safely, while giving parents and guardians the peace of mind they need.” Jo Twist, CEO of the Association for UK Interactive Entertainment, welcomed the proposal and expressed eagerness to collaborate with the government in ensuring enhanced player protection. Richard Wilson, CEO of TIGA, emphasized the importance of games businesses prioritizing player safety. TIGA supports the idea that children and young people should not be able to purchase loot boxes without parental consent and advocates for the protection of vulnerable adults from potential harms associated with loot boxes. TIGA looks forward to contributing to DCMS’s working group to advance measures for player protection.