British government puts gaming industry under pressure: regulate loot boxes or otherwise…

Nadine Dorries is the UK’s Minister for Digital, Culture, Media and Sport. In a statement on July 17, she commented on the topic of loot boxes in gaming. The government is particularly demanding the protection of children. If the games industry does not react, changes in the law should be considered.

What exactly is Dorries saying? In her statement, she was responding to a motion from the House of Lords tabled in 2020. The motion called for the regulation of loot boxes and even wanted to classify them as gambling.

However, Dorries doesn’t go that far for now. For now, she only calls for more protection for children and young people:

We want to prevent children from shopping online without parental permission and being inspired by in-game purchases such as loot boxes.

Gaming companies and platforms need to do more to ensure controls and age restrictions are in place to protect players from the risk of gambling harm. Children should have the freedom to enjoy games safely, while parents and guardians have the peace of mind they need.

The British government relies on the self-regulation of the game companies. However, if the measures taken by the companies are not enough, they do not hesitate to “consider legislation”.

The government has launched a new working group bringing together gaming companies, platforms and regulators.

Government gets encouragement for tougher regulation in reddit

How are the announced changes received? Very positive. Many gamers don’t think much of the loot box mechanics and wish for other ways of monetization. In addition, many hope that when loot boxes are part of a game, they will be viewed as gambling and regulated accordingly.

That’s what it’s called in the games reddit:

• “It’s a great relief that the loot box trend in bigger titles is finally dying down. Never in a million years did I expect Overwatch to do away with them. We owe that to legislation around the world that is making it increasingly difficult to hide the odds. Keep banging on them and take the gambling out of the purchases.”
• “It’s a start, I have to admit. It’s just hard for me to have any hope that predatory practices will really be eradicated when I keep seeing the lives they destroy.”
• “I would even be in favor of blocking not only loot boxes, but every form of predatory monetization. I’m glad it’s getting more recognition than a problem.”

However, there is also criticism. Some are calling for legislation to be put in place immediately instead of relying on companies to regulate themselves. That’s always a bad idea. The user KopazSolidus says something like:

Welcome to our government, where it is easier to suggest that people do or not do something than to enforce the necessary legislation. What a bunch of useless, lazy Tories [Name für die konservative Partei].

Ban on loot boxes in Belgium and probably soon in the Netherlands

How is it in other countries? In Belgium there has been a law since April 26, 2018 that classifies loot boxes as gambling. With consequences:

Loot boxes have also been discussed in the Netherlands for years. A classification for gambling is currently available as an application, but has not yet been officially adopted. However, this led to a very strange situation.

Because in 2020, the District Court of The Hague imposed a judgment on the packs in Ultimate Team and classified them as gambling. However, EA appealed and was right in March 2022:

Nevertheless, the ban or classification of loot boxes as gambling is discussed in many countries. Twitch streamer Asmongold, for example, sat down with a US politician to discuss a ban:

Twitch streamer wants to convince religious politicians to ban loot boxes – “This is brainwashing children”

What do you think about loot boxes? Should they be classified as gambling and games should be rated 18+, or should they be banned altogether? Or are you not that dissatisfied with loot boxes?