In-game Purchases: Protections for Children

Thursday 15th January 2026 Lords Chamber

Question

11:41

Asked by

[Lord Butler of Brockwell]

To ask His Majesty’s Government what progress they have made towards implementing protections for children from harmful in-game purchases, including loot boxes.

[The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Baroness Twycross) (Lab)]

The Government are committed to ensuring games are enjoyed safely and responsibly by everyone, including children. Industry-led guidance to improve protections to players in relation to loot boxes was published in 2023. A 12-month implementation period ended in July 2024, and we commissioned independent research to assess its effectiveness. We have engaged relevant government departments and regulators to consider the research. We will publish the report and set out our next steps in the coming months.

[Lord Butler of Brockwell (CB)]

My Lords, I am grateful for that reply. Is it not time that loot boxes were recognised for what they are—a form of gambling highly addictive to children? The last Government opted for industry-led regulation, but independent research shows that it is not being effectively applied. Will the Government act to ensure safe regulation, particularly for children?

[Baroness Twycross (Lab)]

Clearly, protection for children is key. But as the noble Lord rightly states, loot boxes are not currently legally considered gambling, as individuals are not able to cash out their purchases as currency. Where unlicensed gambling is identified, the Gambling Commission has shown that it will take swift enforcement action. I mentioned the report that was finalised and received in December; the Government are considering the implications of these findings along with other government departments and relevant regulators. We have committed to publishing its findings and we will do so shortly alongside our next steps, including keeping our position on possible future legislative options under review.

[Baroness Bakewell of Hardington Mandeville (LD)]

Last year, research published in the Journal of Behavioral Addictions found that, of 394 popular mobile console and PC games containing loot boxes, only 8.4% correctly disclosed their presence. Action on non-compliance by the Advertising Standards Authority is taken through informal resolution, without transparency or meaningful consequences, resulting in a failure to deter. Neither the ASA nor the Gambling Commission is taking ownership of the gap in enforcement. Will the Minister convene a meeting of the ASA and the Gambling Commission to clearly define responsibilities and strengthen enforcement action against companies which continue to breach the rules?

[Baroness Twycross (Lab)]

As the noble Baroness would expect, I regularly meet with the Gambling Commission and discuss its enforcement activity. I have also met with the Advertising Standards Authority, and, indeed, officials also meet with representatives of the ASA and the Gambling Commission on a range of matters. DCMS has previously raised concerns detailed by Members with the ASA, and I am happy to do so again. Although we are confident that the two regulators talk to each other, I will take steps to make sure that they are liaising very clearly and in detail on this particular point.

[The Earl of Effingham (Con)]

My Lords, the Gambling Commission report is clear: many children spend their money on gambling, and 31% of young people who saw gambling-related content on social media say influencers had advertised it. Whether it is loot boxes or social media, we now have a mountain of indisputable evidence. Children are addicted to smartphones, and gambling is a small part. Why are the Government not acting on the voices of parents and teachers across the country who are urgently asking for a formal smartphone ban in schools?

[Baroness Twycross (Lab)]

As the noble Earl will be aware, most schools—90% of secondary schools and 99.8% of primary schools—have a mobile phone policy limiting students’ use of mobile phones during school hours. We do not want to exclude children from services which are age appropriate. In relation to screen time, the Government are taking action, but it is important to recognise that screens are part of family life now. The question that parents are asking is not whether they should use them but how to use them well. The Government are going to issue their first guidance on screen use for under-fives in April. This will include tips on how it can be incorporated into activities such as talking, reading and playing safely.

[Baroness Gerada (CB)]

My Lords, I refer noble Lords to my declaration of interest: I run a service for those with gambling-related harms on the NHS. I wonder whether the Minister considers that any product where you can exchange money for a random reward could be classified as gambling, which loot boxes are. The Minister mentioned that the reason why loot boxes are not classified as gambling is that there is no exchange in real life of the monetary reward. That is currently very disputed. You can exchange, in the so-called grey market, the money that you gain. Loot boxes have all the features of gambling, and to call them gambling lite does not protect children and young people.

[Baroness Twycross (Lab)]

I have not referred to them as gambling lite. The law is clear that loot boxes are not currently legally considered gambling, for the reasons that the noble Baroness outlined. The grey market is not a legal market, and the Gambling Commission and the Advertising Standards Authority, where appropriate, take action on illegal gambling in whatever form it takes.

[Lord Addington (LD)]

My Lords, we have talked about this quite often before. The fact of the matter is that, even if loot boxes are not to the technical definition of gambling, they are close enough. The Government sound as if they are hiding behind pedantry here. Can we take some action that stops this compulsive behaviour being pushed on to children?

[Baroness Twycross (Lab)]

This is about making sure that children are safe. The Government are committed to ensuring that games are enjoyed safely and responsibly by everyone, including children. The Government maintain the view that loot boxes should not be purchased by children, unless enabled by a parent or guardian, and that is our clear position. All players should have access to spending controls and transparent information. This is why we have funded detailed academic research into the implementation of loot box guidance, which, as I mentioned earlier, will be published in the near future.

[Baroness Bennett of Manor Castle (GP)]

With quite a number of countries around the world having already banned loot boxes and quite a number of gamers having developed a resistance and an anger about them, some online commentary suggests that loot boxes are already on the way out. There is the next new thing, which is known as sweeps or sweepstakes, which involve buying coins for social gameplay. Then, engaged in that, there is a raffle-like or a slot-machine-like process that produces rewards. Are the Government aware of that? Are the Government looking at that? We know that the industry will react—if you just legislate against loot boxes, it will try and find something. Do we not need legislation that covers the whole thing of a gambling-like system set up in gaming?

[Baroness Twycross (Lab)]

The noble Baroness correctly identifies that sometimes our debate does not necessarily keep up with developments. One of the major protections we have in place is the Online Safety Act, which applies to online services that allow users to share content and interact with each other. As I have said in previous responses, the Government keep up to date with developments and keep all options under review.

[Lord Watts (Lab)]

My Lords, is it not the case that gamblers face bigger problems from offshore unregulated sites? What will the Government do to make sure that those are held accountable, given that there has been a massive growth in recent years on such sites?

[Baroness Twycross (Lab)]

My noble friend is referring to what we are doing to tackle the illegal market. As Members of your Lordships’ House will be aware, as part of the Budget the Treasury announced an increase for remote duty but at the same time increased funding to tackle the illegal market. We will be working with the licensed sector on how we increase enforcement—obviously, this will be led by the Gambling Commission—to make sure that we focus on tackling the illegal market, which is an element of the risk that people associate with online activity.

[Lord Scriven (LD)]

My Lords, the Question asked by the noble Lord, Lord Butler, pointed out that voluntary industry regulation was not working, and evidence now exists that that is the case. Are the Government satisfied with continuing with industry-led regulation, or do they see that change is required to keep children safe from these loot boxes?

[Baroness Twycross (Lab)]

This is exactly the matter being dealt with in the research that the Government have commissioned, which will be published in the near future, along with the Government’s response. I am happy to invite noble Lords who have raised concerns about this into the department to be briefed on the research and the Government’s response in due course.