The U.K. Gambling Commission revealed its concerns that video game loot boxes might lead children to a life of gambling. As things stand now, with the law being the way it is, it’s hard to classify loot boxes as a form of gambling.
The UKGC CEO, Neil McArthur, told the Department of Digital, Culture, Media, and Sport that the in-game loot boxes could be construed as a type of gambling. However, as is often the case, the exact circumstances in which players receive them dictate whether it’s gambling or not.
In Great Britain, many experts have voiced their concern over video games being addictive, while the developers of them don’t have to take enough responsibility towards user protection, especially when it comes to younger players.
Presently, the British MPs are leading an investigation into how addictive technologies can be, particularly video games and their utilization of loot boxes. For those unfamiliar with the term, loot boxes are paid-for packs which provide you with in-game items, such as character skins, better weaponry, or more-quality AI. Many fear that this system (paying for a loot box of unknown contents) might prove to be a children’s gateway to gambling.
McArthur said that the Gambling Act defined gambling as participating in any game of chance for a prize, and there was solid ground for loot boxes to be within this definition under proper circumstances. The problem occurred, McArthur continued, with the definition of “prize.” The Act sees a prize as money or something of money’s worth. McArthur said that this signified that the prize had to be at least something financially equivalent to money.
EA’s Anti-Gambling System
When asked about EA’s system of offering randomized player packs in exchange for money, UKGC program director, Brad Enright, said the Commission was happy with how it was carried out. According to Enright, the developers have taken several measures to make sure players won’t be able to trade the packs for money in what is known as skin gambling.
Enright commented that they were in touch with EA, which gave an explanation as to how exactly the game mechanics worked. The player who’s actively playing will receive a pack, and the fact that the rewards are random (an RNG determines which playable characters you will receive) means there’s a chance involved, and the items can be seen as a prize.
But, Enright added, the commission believed EA took a lot of necessary steps to prevent any secondary markets which would involve real money from opening. Despite that, there are still worries over the system, simply due to the fact that it’s a chance-based mechanics which does involve expenditure. The main problem is that mainly children play these games.
Both McArthur and Enright have pointed out that the UKGC took action over many skin gambling websites in the last four years — over 20 of them.
A member of the U.K. Parliament, Margot James, weighed in on the issue. James, a recent resignee from the position of digital minister, said that the evidence was lacking for the government to be able to constitute video game loot boxes as a form of gambling. She said that she was against such an assumption and was adamant that the available evidence wouldn’t fully support the premise.