Loot Box Gambling in Video Games Front and Center of new UK Legislative Efforts

Casino Watch Focus has reported on the ongoing efforts to classify loot boxes as gambling.  Most recently, the Netherlands issues huge fines against video game publisher EA over this gambling type mechanic in their game Fifa and Spain has shifted focus to regulating these loot boxes as gambling to help protect the children who play these video games.  The UK has been examining the issue for a while, and a new effort being pushed by a local legislator is placing loot boxes front and center.  An online source reports:

Midlothian MP Owen Thompson called for the updating of gambling laws to include tougher action to prevent children and young people being encouraged into gambling-like behaviours while using video games. After the Digital, Culture, Media and Sport Minister Nigel Huddleston outlined plans for a forthcoming gambling review, the Midlothian MP called for it to include measures to regulate the use of “loot boxes” in video games. Academic research has linked loot box spending to problem gambling in adolescents.

Mr Thompson called for an extension of the Gambling Act 2005 to include loot boxes and action to prevent video game companies from profiteering on the back of young people who develop gambling-like addictions.

Mr Thompson said: “It is well past time the UK’s gambling laws were made fit for the digital age. Of particular concern is the rise in gambling in children under 16. One important step would be to close the loopholes that allow gambling-like tools to be excessively used in children’s video games. “Parents don’t care about the legal definitions of gambling – they want to know their children are safe when playing popular video games and that means tighter regulations to protect from online harms.

When describing the nature of loot boxes, Mr. Thompson points out that academic research has explained the link to problem gambling and that these video game companies are operating in a legal loophole that needs to be addressed.  The online source continues:

“The presence of loot boxes can encourage young people who are enjoying a video game to spend money they can’t afford in order to keep going, and academic research shows this is linked to problem gambling. It is a very short step between that and addictions to other forms of gambling games like slot machines.

“This is a loophole in the law that needs to be closed down so that tougher regulatory measures can be taken. The Vice Chair of EA Games described loot boxes as ethical and fun, but as a gamer myself I find they can be a costly distraction at best, and capable of encouraging online harm at worst. I find it highly unethical to profit from excessive spend from teenagers on games of chance.

“We cannot wait for the industry to take tougher action – the UK Government needs to tighten the laws and ensure everything possible is done to ensure children and young people are protected when online.”

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