Games with loot boxes should carry a gambling warning and video game companies should take more responsibility for players' health, say lawmakers in the UK
Buying loot boxes isn't a requirement and you're guaranteed a few prizes, but they make unlocking rare items into a game of chance.
The UK Parliament's DCMS Committee said that games publishers should offer in-game currency as a reward instead of loot boxes, and games that offer microtransactions should be clear about what items will be unlocked prior to purchase.
The DCMS committee said that games should not offer microtransactions without revealing which items will be unlocked before purchase, and games that include loot boxes should be age-restricted and carry a content warning for gambling. The committee also recommends that new regulations be introduced to force video game companies to share player data for the purpose of safety and identifying unhealthy habits.
"We recommend that loot boxes that contain the element of chance should not be sold to children playing games, and instead in-game credits should be earned through rewards won through playing the games," the DCMS committee report reads.
Some games allow players to trade or bet what they find in loot boxes, creating a black market where rare items can be worth hundreds of dollars.
Some games allow players to exchange their in-game items for real-world cash, which leads to trades and bets between players. The DCMS said that the growing market around digital video game items represents a form of unlicensed gambling and further suggests that some games are designed to encourage gambling-like behavior.
"We agree with the Gambling Commission that games companies should be doing more to prevent in-game items from being traded for real-world money, or being used in unlicensed gambling," the report reads. "These uses are a direct result of how games are designed and monetized, and their prevalence of undermines the argument that loot boxes are not a form of gambling."
The DCMS report is the latest voice in a global conversation about video games and gambling. The U.S. is considering its own regulations, and China has strict rules in place.
Parliament will still need to decide whether turn these recommendations into policy and legislation, but the report marks a growing desire for more oversight in the video game industry.
Earlier this year Sen. Joe Hawley introduced a bill that would ban the use of loot boxes in games marketed towards children. The U.S. Federal Trade Commission held its own workshop to discuss loot boxes and microtransactions in August, with several hours of testimony from industry experts. The workshop came at the request of Sen. Maggie Hassan, who also expressed concerns that loot boxes were introducing children to gambling.
During the workshop the Electronic Software Association, the organization responsible for representing the political interests of video game companies in the U.S., said that Sony, Microsoft, and Nintendo will require all games on their consoles to disclose their odds for loot boxes by the end of 2020.
China has strict regulations on new video games released in the country, and has been implementing mandatory time limits for players under the age of 18. China also requires publishers to disclose the odds of items contained in loot boxes.
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