MPs have learned from the UK gambling regulatory body that video game developers could face prosecution should they fail to prevent children from reaching gambling services by using special features in games such as Counter-Strike and Call of Duty.
In an evidence session with the select Committee of the Department for Culture, Media and Sport, which has been empowered to examine the links between gaming and gambling, the UK Gambling Commission (UKGC) revealed that it has been greatly concerned about some video games features such as skins and loot boxes. So-called skins are special in-game items that can be won in the game, while loot boxes are “mystery” awards that players must pay for in order to see what is inside the box.
Lately, there have been concerns that loot boxes were a form of gambling because players were actually paying with real money for an object or an award they see only when they open the “box”. However, despite increasing criticism, such products are still not constituted as gambling under the existing gambling law in the UK because games do not allow players to exchange the in-game items for cash within the game, no matter that they can be actually purchased with real money.
Brad Enright, the programme director of the UKGC, explained that the actions which the watchdog could take against controversial loot boxes and in-game items were highly limited by the existing legislation. He, however, assured MPs that the watchdog was ready to regulate such products in case the UK gambling laws were changed.
Video Game Loot Boxes and In-Play Items Are Not a Form of Gambling in the UK
As mentioned above, video game loot boxes, including Fifa player packs, have been called a form of gambling. However, the UK gambling regulator has told MPs that it is not currently empowered to purchase such in-game content because there is no official way to give legal value to what is inside them.
In order to be subject to gambling legislation, a prize needs to be either money or have a monetary value. However, there are currently some third-party websites which buy and sell in-game content or provides players with the chance to use such items as virtual currency.
As explained by UKGC’s programme director, action could be taken against video gaming companies which were not found to be engaged in preventing their players from selling the items for real money, or gamble with them on third-party websites.
The concern of parents, anti-gambling campaigners and competent authorities, however, has been rising, as many players have reported that their children are spending hundreds of pounds purchasing in-game items. They have openly called the option a form of gambling because there is an element of chance when the outcome is revealed, and children are usually tempted to make another purchase again to try to get the prize they want.
Some Countries Ban Loot Boxes and Third-Party Websites
On a global scale, there has also been criticism against loot boxes and in-play items. Last year, Belgium even banned loot boxes as it found that they violated the country’s gambling legislation.
Several countries have been dealing with so-called “skin betting”, which is usually offered by third-party websites. The latter enable players to gamble the virtual content they acquire in video games, including weapons, clothing and special items, on casino or slot machine type games.
According to Mr Enright, the largest number of inquiries have been filed in terms of the popular game Counter-Strike: Global Offensive. He also shared that despite the UKGC does not have any powers to deal with these services, gaming companies could take action against third-party websites by having them closed for a breach of copyright. Most firms, however, were waiting for the gambling regulatory body to take action against such cases, rather than acting themselves.
- Author
Olivia Cole
