Loot boxes could soon be classified as gambling by the UK government. The Department for Digital, Culture, Media, and Sport (DCMS) is seeking evidence because they fear that loot boxes teach children how to gamble.
Loot boxes have become a popular game mechanic in recent years due to the amount of revenue they bring in. Some games have loot boxes that use in-game currency and don’t require any real-world money to unlock. On the other hand, many new games are making a fortune off loot-boxes that are bought for real money. They even resort to the “pay-to-win” formula, which makes progress all-but-impossible without the items won from loot boxes. Since the boxes contain unspecified loot, players end up paying more and more until they get that rare item they are seeking.
Many children and even adults end up losing their hard-earned cash on loot boxes in the hope of finding what they need to progress. According to The Guardian, Labour MP Carolyn Harris said, “They are a virtually speculative commodity that only helps to normalize and encourage young people to take a chance." She goes on, “All too often, this will lead to youngsters developing an addiction to gambling.”
According to the current legislation, loot boxes aren’t considered gambling because the “prizes” don’t have a monetary value. This might change after the DCMS committee heard evidence concerning the sale of loot boxes through third-parties. Other countries like Belgium and the Netherlands already classify loot boxes as gambling and have forced publishers to change their ways.
The Belgian ruling led EA Games to reluctantly remove loot-boxes from FUT mode in the profitable FIFA franchise. The boxes were replaced with versions requiring in-game currency only. If the ruling goes through in the UK, it will be another lucrative market lost. To put things in perspective, loot boxes have become one of EA’s biggest earners, taking in $1,38 billion, or 28% of their net revenue. The company have been doing everything in its power to keep loot boxes and have multiple lawsuits pending.
If the ruling goes through, it could have drastic effects on the gaming industry. Titles with loot box mechanics may get an age restriction, which could hurt sales. Publishers may also have to adapt their games to the new classification, or risk penalties. While publishers may be upset by the decline in revenue, most gamers will rejoice the death of loot boxes.
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Source: The Guardian, FIFA-Infinity
