UK government wants the games industry to take action against loot boxes

The government is considering the ideas of the new law for the “protection of vulnerable players.”
Loot boxes from a number of games bunched together

After Belgium and the Netherlands, bans on loot boxes came to the fore in England. Government studies since 2020 have shown that “gambling-like” systems in games can cause “mental health and financial problems” for some players. In particular, children and young people were considered “vulnerable players.”

Games have become a part of everyday life. Gaming rates are increasing for all age groups, and people are turning to digital entertainment. Although this situation is generally harmless, some systems used in games can have adverse effects, especially on children. TUK’s Department for Digital, Culture, Media and Sport is researching this issue.

A new call came from the British government some time ago. It was requested that children and teenagers’ access to “loot boxes” and similar systems be restricted unless a parent or guardian approves. On the subject, British Culture Minister Nadine Dorries made the following statement:

“We want to stop children going on spending sprees online without parental consent, spurred on by in-game purchases like loot boxes. 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.”

No legal regulation has been made on the subject yet. On the other hand, the government’s demand is clear: “Game companies should do more to enforce age restrictions and child protection measures.” The fact that game companies do not listen to this request may cause some binding legal regulations to be made.

The British government plans to establish a working group to conduct research and studies on this issue. Jo Twist OBE, CEO of the UK Interactive Entertainment Association (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 organizations in the working group and on the Video Games Research Framework.”

Loot boxes and similar “gacha” systems are frequently used in games. Belgium and the Netherlands considered this system a gamble and imposed sanctions on the issue. For this reason, Diablo Immortal was not released in these countries. Still, the game quickly made huge profits.

If the UK follows a similar path, it may negatively affect new or existing games. Genshin Impact and similar games, which frequently top the list of games that generate the most revenue, often use gacha systems. The countries’ sanctions against gambling can directly or indirectly affect the revenues of these games.

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