HomeInsightsGovernment launches call for evidence on video game loot boxes

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The Government has launched a call for evidence on the impact of loot boxes in video games, to examine concerns they may encourage or lead to problem gambling. Video games are played by over half of the population and the sector is a key part of the UK’s world-leading creative industries. It contributed £2.6 billion to the economy in 2018, employed 27,000 people in 2019 and has grown more than 16 times faster than the wider UK economy since 2010.

Loot boxes are in-game containers purchased with either virtual or real-world currency that awards players with randomised virtual items. They can use these items to improve their playing experience or for cosmetic upgrades to their character’s appearance. Players do not know which item they will get until after they have opened the loot box and this chance element has raised concerns they could encourage gambling-like behaviour, particularly among young people.

With people spending increasing amounts of time online and as the industry, gaming habits, and the technology that supports it continues to evolve, the Government says that its call for evidence will help it understand people’s positive and negative experiences of loot boxes in video games. It will seek the experiences of players and their parents or guardians as well as rigorous, high quality data and research from video games companies, academia, civil society as well as any other organisations with an interest in this issue.

The findings will also give the Government a clearer understanding of the size of the loot box and in-game purchases market in the UK, how it operates, and the impact of current protections such as parental controls and consumer regulations.

The Government says that it stands ready to take action should the outcomes of the call for evidence support taking a new approach to ensure users, and particularly young people, are better protected. Loot boxes will be considered alongside a review of the Gambling Act 2005.

The Government will also undertake further research into the wider impact of video games on behaviour. The DCMS will set a framework for a programme of research informed by workshops with academia and industry. The Government says that it is taking these steps to address issues highlighted by the DCMS Select Committee’s report on Immersive and Addictive Technologies and to protect audiences across the UK.

The call for evidence closes on 22 November 2020. To access the call for evidence, click here.