‘Loot boxes’ turning young gamers into gamblers

Critics of the gaming industry say in-game rewards called "loot boxes" are introducing young people to gambling behaviours, and even leading to them racking up huge bills.

Now regulators and politicians are warning that the line between video-gambling and gaming is becoming increasingly blurred and new laws may be needed to prevent the promise of in-game rewards turning young gamers into gamblers.

"Loot boxes" can be earned through spending time playing a game, or bought instantly for real money.

"Opening" a loot box rewards players with in-game items of varying rarity, but whether or not a player gets the item they want is ultimately down to luck.

Put simply when you buy a loot box, you are not buying a particular item in a game, you are buying the chance of getting that item.

If you don't get what you want, you may well be tempted to pay for another go.

Natasha Beasley is a massive video games fan. She says it is all too easy to spend a fortune without realising the money's adding up.

She said: "I've seen people who don't have very much money spend way too much for a chance of getting something.

"Sometimes I'll spend £30 a month and I might get one thing [I want] but I'll regret the previous five because it didn't give me anything worth the amount I spent."

Speaking from WeGeek Gaming Utopia - a special event which includes gaming tournaments - she said it would be easier if the temptation wasn't there.

"It's definitely a gambling habit, it's the same as going in somewhere to gamble, it has that feeling of 'I'm going to take a chance on this'," she said.

"You get that sense of satisfaction if you win, disappointment if you lose, but there's always a chance you could win next time..."

Tim Miller, executive director of the Gambling Commission says loot boxes are an area it is monitoring closely.

"We've been concerned for some time that the line between gaming and gambling is increasingly blurry," he said.

"It's harder for children and parents to understand which side of the line they might be on. We are taking clear action as a regulator to make sure we're patrolling that line, so that if things cross over into gambling we will take appropriate action.

"Many of these games will appeal to children and that's fine but if those games have mechanisms that allow children to gamble that is rightly a concern.

"If it crosses that line into gambling, we will take action... and if it comes close to that line, as parents, it's so important that we understand those risks and that we take action to keep our children safe online."

To date, the Gambling Commission's enforcement has been limited to a crackdown on so called "skin betting" websites, unlicensed sites that facilitate betting with items awarded from loot boxes, but some legislators think it's time to look closer at the addictive features of the games themselves.

Daniel Zeichner, Labour MP for Cambridge, told Sky News: "I think it either needs Government action or it needs the industry itself to take some action because there is a real risk to young people.... It's becoming addictive.

"We're hearing stories of people losing thousands of pounds quite quickly and I think if the industry can't sort it out then it does need new legislation."

Ukie - the body representing the UK gaming industry - says gaming developers are doing nothing wrong and reject calls for new rules.

The association told Sky News: "Loot boxes and the purchasing of in-game virtual items are already covered by and fully compliant with existing relevant UK regulations. "