Question to the Department for Digital, Culture, Media & Sport:

To ask His Majesty's Government what action they plan to take, if any, to tackle the ability of computer games players to ‘cash out’ loot box prizes through online platforms such as the Steam Community Market.

His Majesty’s Government and the Gambling Commission continue to monitor the convergence of video games and gambling closely. The majority of loot box rewards do not have a monetary value, cannot be cashed out, and are of value only in the context of a given game. They do not therefore meet the definition of gambling as set out in the Gambling Act 2005. All operators providing gambling services to consumers in Britain require a licence from the Gambling Commission. Offering any gambling activity without a licence is an offence. The Gambling Commission has demonstrated that it will take strong regulatory action where video game products do amount to unlicensed gambling, including in instances when the trading of items obtained from loot boxes brings loot box mechanics within the statutory definitions of gambling.

In July 2023, UK Interactive Entertainment published new, industry-led guidance on loot boxes. HM Government welcomes this guidance, which, if fully implemented, has the potential to meet the objectives set out in the Government’s response to our call for evidence on loot boxes, published in July 2022. We have agreed a 12-month implementation period during which we expect the industry to work with players, parents, academics, consumer groups and Government bodies to implement this guidance in full.