Loot boxes do not fall under gambling law where the in-game items acquired are confined for use within the game and cannot be cashed out. The Government has no plans to ban loot boxes, or to amend Gambling Commission’s powers in relation to loot boxes. However, the Government is aware of concerns that entertainment products, such as some video games, could encourage gambling-like behaviour, and will continue to look closely at any evidence around this issue.
The Gambling Commission, as the regulator for gambling in Great Britain, has strong powers and can take action where it needs to address emerging risks.
In September 2018, the Gambling Commission, along with 15 other regulators from Europe and the USA, agreed to work together to monitor the characteristics of video games and social gaming and where there is potential cross-over into gambling. They will also work to raise parental and consumer awareness.
We welcome the introduction last year by the VSC Ratings Board and PEGI of a new label for video games to warn parents where they include the opportunity to make in-game purchases.