Gambling Commission CEO: Loot Boxes “could be” a form of gambling
Regulator calls on developers to address the secondary market of skins betting
The Gambling Commission (UKGC) believes loot boxes within video games “could be” a form of gambling, but a firm definition depends on the exact circumstances in which they are offered.
Speaking at the DCMS’ inquiry into so-called addictive and immersive technologies, UKGC CEO Neil McArthur said the commission would “draw the line” on any loot boxes which offer the ability to turn purchased items back into money through mechanisms such as secondary markets.
Defending the UKGC’s record in dealing with this issue McArthur highlighted several instances where the UKGC informed game developers the in-game items they offer would constitute gambling under UK law.
Using the example of EA, McArthur said the UKGC had challenged the Fifa-developer to demonstrate how it was “proactively stopping and preventing” the development of a secondary market for its in-game purchases.
Speaking about the issues with EA, McArthur said it had seen examples where there were “very sophisticated” secondary markets, in which players could exchange so-called skins for money.
“In those cases we are saying, ‘You are so far over the line, that is clearly gambling’,” McArthur added.
McArthur also took aim at CS:GO developers Valve, which he said developed a successful business using these games but now had a responsibility to address the issue of skins trading, something which the Commission believes is a gateway to gambling among underage players.
“It has presumably the creative talent to come up with far more technical solutions than we can to address the by-product of how it is operating,” McArthur said.
“That is the biggest example that we have engaged with and we challenged it to do more proactively rather than wait on ourselves, the Netherlands, others, Washington, to draw its attention to issues. It should be proactively dealing with this,” McArthur added.
Last year, regulators from sixteen countries, including the UKGC, Malta Gaming Authority, Netherlands Gambling Authority and the Belgian Gaming Authority, all signed a joint declaration pledging to examine links between loot boxes and gambling.