The UK Government and Authorities Respond to New Loot Boxes Usage Legislation

The UK government has turned to gambling companies hoping to stress the importance of defending kids and young adolescents from the possible adverse consequences of using loot boxes. Those are gambling addiction and mental disorders. Nadine Dorries, the Culture Secretary, announced that gaming companies and services should provide parental control when it comes to online purchases and age restrictions so that children do not get access to harmful content. In particular, the control should be set for all users under 18. The idea is that only a parent or a guardian can confirm the purchase of a new item. Among all, Xbox’s parental restrictions on loot boxes served as a great example. The country’s government promises to take legal measures in case the gambling platforms ignore these warnings.

This announcement is not something new. The Department for Digital, Culture, Media, and Sport created an inquiry some time ago. Since 2020, they have investigated the field and possible legislative actions to follow.

This news was introduced once again after two years by GambleAware. That is a gambling authority from the United Kingdom that assists with preventing and coping with gambling addiction and associated issues. The authority completely supports the initiative of the government.

Warning Statistics That Show the Importance of a New Legislation

Interestingly, in two years, over 32,000 users responded to the inquiry. They also stick to the idea that loot boxes may lead to problems with mental conditions, financial issues, etc.

Currently, as many as 40 percent of kids who play games regularly are using loot boxes. It pushes some of them to gambling-related activities later. To make sure that more and more gaming organizations are involved, a special group of researchers is involved. They will have to unite the organizations, both land-based and online, to come up with market-led protocols to defend users, decreasing any risks. 

Except for parental control, they plan to use other things like spending control and ensuring easy-to-access and transparent info to all users. In addition, the new initiative known as the Video Game Research Framework will keep observing and exploring the impacts with government backing. This project has to determine the pros and cons of video games more clearly.

In fact, loot boxes make it possible for users to purchase a box with real cash. That is how users obtain a chance to take part in a competition at a higher level. Studies show that this way, such boxes are psychologically akin to gambling. Thus, some defense measures are a must to avoid further harm associated with gambling. Young people are especially sensitive to such consequences.

As of today, the National Audit Office claims roughly 55,000 users aged 11-16 are subject to gambling-related harm. At the same time, 85,000 users risk developing gambling harm. Those are statistics for the United Kingdom alone!

Particular Safety & Protection Measures to Consider

The UK’s gaming trade body Ukie was among the first ones to react. Being a responsible market representative, they promised to implement extra ways to protect both players and their families from the adverse consequences of loot boxes. One more organization that fully supports parental controls and other initiatives is the Independent Game Developers Association (TIGA). They even added that both children and grown-ups who are vulnerable should actually be protected from facing gambling-related harm. The Children’s Commissioner for England is sure that an expansion of the Gambling Act to include virtual items will help. Even Epic Risk Management stepped in, calling for the limited sale of loot boxes and games.

Yet, parental permission is not enough. The users should be able to retrieve and explore info associated with responsible gaming and remember the main rules of secure play. Last but not least, more in-depth research is required. New findings may assist with regulating loot boxes effectively. On the whole, the UK government, along with several gambling authorities, insists on 3 significant measures. First, a higher level of buyer protection. Second, they believe enhanced industry-led protections will do. Finally, the changes to the UK Gambling Act will most probably improve the overall situation.