Tuesday December 15th 2020
Midlothian MP Owen Thompson called for the updating of gambling laws to include tougher action to prevent children and young people being encouraged into gambling-like behaviours while using video games.
After the Digital, Culture, Media and Sport Minister Nigel Huddleston outlined plans for a forthcoming gambling review, the Midlothian MP called for it to include measures to regulate the use of “loot boxes” in video games. Academic research has linked loot box spending to problem gambling in adolescents.
The use of loot boxes is currently not defined as gambling and not covered by UK regulatory powers under the Gambling Act 2005. Yet a 2019 Children’s Commissioner for England report found hundreds of pounds were being spent in some instances, without knowledge of the reward and with children losing control and chasing their losses by spending more. The report concluded that the “monetisation of gaming brings children closer to gambling.”
Mr Thompson called for an extension of the Gambling Act 2005 to include loot boxes and action to prevent video game companies from profiteering on the back of young people who develop gambling-like addictions.
Mr Thompson said
“It is well past time the UK’s gambling laws were made fit for the digital age. Of particular concern is the rise in gambling in children under 16. One important step would be to close the loopholes that allow gambling-like tools to be excessively used in children’s video games.
“Parents don’t care about the legal definitions of gambling – they want to know their children are safe when playing popular video games and that means tighter regulations to protect from online harms.
“The presence of loot boxes can encourage young people who are enjoying a video game to spend money they can’t afford in order to keep going, and academic research shows this is linked to problem gambling. It is a very short step between that and addictions to other forms of gambling games like slot machines.
“This is a loophole in the law that needs to be closed down so that tougher regulatory measures can be taken. The Vice Chair of EA Games described loot boxes as ethical and fun, but as a gamer myself I find they can be a costly distraction at best, and capable of encouraging online harm at worst. I find it highly unethical to profit from excessive spend from teenagers on games of chance.
“We cannot wait for the industry to take tougher action – the UK Government needs to tighten the laws and ensure everything possible is done to ensure children and young people are protected when online.”
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