UK Rules Loot Boxes in Video Games Are Not Legally Gambling

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Speaking of the heated debate on loot boxes in video games, one of the points of contention is whether they can be considered gambling.

At least from the United Kingdom, the answer is no, from a legal standpoint. The local Gambling Commission posted a ruling yesterday mentioned that what is considered gambling is set by Parliament, and not by the commission itself.

According to the line set by UK gambling law, loot boxes in video games are not considered gambling, as they are combined for use within the game and cannot be cashed out.

A key factor in deciding if that line has been crossed is whether in-game items acquired ‘via a game of chance’ can be considered money or money’s worth. In practical terms this means that where in-game items obtained via loot boxes are confined for use within the game and cannot be cashed out it is unlikely to be caught as a licensable gambling activity. In those cases our legal powers would not allow us to step in.
That being said, the commission has been acting against third-party websites that offer real money gambling services centered on in-game content.


That being said, the commission also recognizes that many parents are not concerned about whether loot boxes are legally gambling or not, but simply if they can be harmful to their children.

To that effect, the commission suggests developers and publishers to include “proper protections,” basically suggesting the implementation of dedicated parental controls or age verification. This is something that the commission mentions “parents will undoubtedly expect.”

On the other hand, politicians from Belgium and the State of Hawaii have started moving in the opposite direction.

In the meanwhile, Electronic Arts has temporarily removed microtransactions for loot boxes from Star Wars Battlefront II, that has been the catalyst for the whole situation to explode. At the moment we do not know in which form microtransactions will return to the game.

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Related Forum: Gaming Discussion

Source: https://www.dualshockers.com/loot-boxes-video-games-not-legally-gambling/

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"UK Rules Loot Boxes in Video Games Are Not Legally Gambling" :: Login/Create an Account :: 13 comments

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DecyPosted:

Mikey Well I wouldn't have fault this would be gambling anyway lol its a video game ffs


Games like fifa.. i would say that's gambling.. Not saying all games that have microtransactions are gambling but there are a few out there that sure are the case..

ODSTPosted:

Admission I think this whole controversy has just been blown out of proportion, I mean think about it. They are boxes that are not forced but are there incase you want to get extra cosmetics and such. It seems like now theyre just talking about loot boxes in general which have been around for years now :)


You're definitely missing the point here. The concern is if loot boxes have the same draw as gambling in a casino at a slot machine does. In this instance, UK has said that loot boxes and slot machines/gambling are exactly the same with one major difference being one spits out redeemables for cash while the other dispenses digital content that cannot be redeemed in a real currency manor.

The issue with this whole debacle deals with the same reason why gambling is so heavily regulated around the world. It's extremely addictive. Kids are not forced to buy a loot box and same can be said about the guy at the casino not needing to spin the roulette wheel one more time. If many grown adults cannot bring themselves to stop gambling, how can parents regulate what their kid does while gambling? Children are very impressionable and only see that putting more $$$ into a game leads to more prizes. They can spend hundreds of dollars and still not get the single item they're looking for.

lbreadsticklPosted:

cymbah
lbreadstickl
cymbah "cannot be cashed out" The must have not played Rocket League or CSGo lol

Yep lol. I've nearly stopped RL after playing every day I was home since it's xbox release. Just sold off all my in game crates and items for $761 to people. It's amazing the value digital items have


Where?!? i have so much stuff and idk which website to trust :(
i never went to one. I played a lot and hit champs and higher a lot, with that came a bunch of random followers and more than a few people asking to buy crates and items. Some will have a check mark and it'll say "verified" on their profile. Went with those guys.

TOXICPosted:

Well I wouldn't have fault this would be gambling anyway lol its a video game ffs

cymbahPosted:

lbreadstickl
cymbah "cannot be cashed out" The must have not played Rocket League or CSGo lol

Yep lol. I've nearly stopped RL after playing every day I was home since it's xbox release. Just sold off all my in game crates and items for $761 to people. It's amazing the value digital items have


Where?!? i have so much stuff and idk which website to trust :(

junoPosted:

This is interesting, not sure what's gonna happen..

lbreadsticklPosted:

cymbah "cannot be cashed out" The must have not played Rocket League or CSGo lol

Yep lol. I've nearly stopped RL after playing every day I was home since it's xbox release. Just sold off all my in game crates and items for $761 to people. It's amazing the value digital items have

FamousPosted:

Soon to see "You gotta be18 years or older to purchase this content."

MushroomElmPosted:

Decy Technically they can be cashed out tho because i know of various games where you can sell in-game items for money..


I agree. I want to know what games they looked at? Probably strictly console games, and not computer games. Idiots.

DecyPosted:

Technically they can be cashed out tho because i know of various games where you can sell in-game items for money..


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