The DCMS hopes to set the framework for the UK to take the lead globally in regulating this multi-billion dollar industry

Video game stakeholders have been advised by DCMS that minors and children should not be able to purchase loot boxes without their parents’ permission with the UK government threatening to draft legislation that will regulate loot boxes if the UK games sector does not act.

Following responses from a 2020 consultation that? “unveiled a link between loot boxes and gambling harms, as well as wider mental health, financial and problem-gaming harms”, new laws and standards regarding video game prizes and incentives will be implemented.

In order to protect the minority of players who spend an excessive amount of money on loot boxes and may thus be more vulnerable, the government department will urge gaming businesses and platforms to offer spending restrictions and transparent information to all players.

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

The government wants to lay the groundwork for the UK to become the global leader in regulating the multi-billion dollar video game industry by creating the safest environment possible for kids to play games. To that end, standards are being raised and new protections are being implemented, according to DCMS.

This isn’t the first time a British government committee has requested information on loot boxes; in January 2019, the DCMS Committee had also requested testimony from people and the general public as part of its initial investigation into issues with gambling and addiction in video games.

As a result of this evidence-gathering, the DCMS Committee recommended that the UK Government regulates loot boxes under the Gambling Act, with all the additional laws and restrictions that entail.

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