Europe discusses loot boxes

GREF, a gaming forum in Europe has decided to opt against making specific recommendations against loot boxes in video games.

UK.- Europe has been debating loot boxes in video games for quite a while. However, the Gaming Regulators’ European Forum (GREF) decided not to make any specific recommendations against them. The group has just completed its study into gambling-like microtransactions.

GREF members decided they shouldn’t introduce gambling regulation in Europe regarding loot boxes. They felt each country should regulate according to its own definition of the segment.

“It is recognised that whether these activities ultimately trigger the implementation of gambling regulation, would depend on each national gambling definition,” states the report.

“Consumer protection associations are encouraged to make recommendations in this direction,” they added. “For example, the communication before the purchase of the loot-box content and the probabilities of obtaining a particular virtual item.”

UK report

A new report from the Department for Digital, Culture, Media & Sport committee (DCMS) has detailed a number of recommendations for the UK government to take into consideration. Among those recommendations, it says that loot boxes should be regulated and that children should be banned from purchasing them.

The report on immersive technologies launched after months of parliamentary hearings with gaming and technology companies. The committee argues that loot boxes should not be regulated if they’re only for in-game success. However, it says that if you have to pay real money for them, they should. It also recommended the government classify loot boxes as a game of chance under the Gambling Act 2005.

Damian Collins, chair of the committee, explained that loot boxes are particularly lucrative for gaming companies. However, he said they “come at a high cost,” particularly for problem gamblers, while exposing children to potential harm. He said that purchasing loot boxes equals playing a game of chance and that gambling laws should be present. “We challenge the government to explain why loot boxes should be exempt from the Gambling Act,” he said.