Loot boxes need to be regulated says GambleAware

Loot boxes are a hot-button topic for GambleAware, which is struggling to understand how these digital goods may be allowed to operate without any additional layer of protection for consumers. In fact, the non-for-profit organization wants to see more done by the UK Gambling Commission and lawmakers in setting clear-cut laws that would protect children in the United Kingdom and ensure that loot boxes are not causing gambling addiction and other harm.

In a new statement, GambleAware urged for more action on loot boxes. The organization said that more than 40% of children who participate in video gaming (out of 93% of all children in the UK) use loot boxes. While there have been a lot of back-and-forths about whether loot boxes are an actual form of gambling, many industry observers have argued that these digital goods should come under more scrutiny by the government.

The government has hinted that it will not put loot boxes on the same legislation as gambling, as the industry expects a re-regulation in an upcoming White Paper. But then again, the Children’s Commissioner of England argued that loot boxes must be regulated, and perhaps as part of the gambling laws of the country.

Right now, the DCMS which leads the review, argues that a better way to regulate loot boxes would be to introduce a system of parental and guardian consent. This measure is not entirely without its merits, as it will effectively make it harder for children to spend without their parents agreeing.

Awareness among parents and guardians about loot boxes is similarly important and necessary. GambleAware hopes that by making some adjustments to the existing laws, though, any future gambling-related harms can be nipped in the bud, making children less vulnerable to quasi-gambling.

The urgency by GambleAware is not surprising. Loot boxes are in fact a serious threat, some researchers argue. GambleAware released a massive study in 2020 analyzing loot boxes, too. Presently, 55,000 children in the United Kingdom between 11 and 16 are experiencing gambling harm. Another 85,000 are actually at risk and need help and a regulatory framework that will make it easier for them to cope.

Meanwhile, the Netherlands is still unsure about what loot boxes are and how they should be regulated. A recent court ruling sided with the video gaming industry, arguing that these goods are not in fact gambling. The debates about loot boxes across the European Union and the rest of the world continue.

Image source: BeGambleAware