Asked by: Angela Crawley (Scottish National Party - Lanark and Hamilton East)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Culture, Media and Sport, whether she plans to increase regulation of micro-transactions in video games.
Answered by Julia Lopez - Minister of State (Department for Science, Innovation and Technology)
The Government monitors the impact of microtransactions in video games on players, including children and young people. In 2020, we launched a call for evidence on loot boxes in video games which found an association between purchasing loot boxes and problem gambling, although no causal link has been found.
We have since welcomed new industry-led guidance to improve protections for players and meet the following Government objectives that:
purchases of loot boxes should be unavailable to all children and young people unless and until they are enabled by a parent or guardian; and
all players should have access to and be aware of spending controls and transparent information to support safe and responsible gaming.
We are working with industry and academics to monitor the implementation and effectiveness of the new guidance and will provide an update following the 12-month implementation period, and independent academic scrutiny. We continue to keep our position on possible future legislative options under review. We monitor developments in other international jurisdictions, including Belgium, although no recent discussions with Belgian counterparts have taken place.
Whilst the new guidance relates to paid loot boxes specifically, a number of the measures are relevant to in-game microtransactions more broadly, particularly for children and young people. This includes driving awareness of and uptake of parental controls, and running a three-year £1 million public information campaign to provide information to players and parents about safe and responsible play
We have also published a Video Games Research Framework to improve the evidence base on the impacts of video games, including microtransactions and player spending. The Framework outlines the research topics and priorities which we have identified as core areas in need of further research. This includes better understanding of the impact of different monetisation features on players’ experiences, and the effectiveness of mechanisms to mitigate the risk of problematic spending behaviours.
While some microtransactions share similarities with traditional gambling products, we view the ability to legitimately cash out rewards as an important distinction. In particular, the prize does not normally have real world monetary value outside of the game, and its primary utility is to enhance the in-game experience. The Gambling Commission has shown that it can and will take robust enforcement action where the trading of items obtained from in-game microtransactions does amount to unlicensed gambling. Microtransactions within video games - including loot boxes - are also subject to consumer protection legislation that protects against misleading or aggressive marketing.
Asked by: Angela Crawley (Scottish National Party - Lanark and Hamilton East)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Culture, Media and Sport, whether her Department (a) has and (b) plans to make an assessment of the potential impact of micro-transactions in video games on levels of spending among children and young people.
Answered by Julia Lopez - Minister of State (Department for Science, Innovation and Technology)
The Government monitors the impact of microtransactions in video games on players, including children and young people. In 2020, we launched a call for evidence on loot boxes in video games which found an association between purchasing loot boxes and problem gambling, although no causal link has been found.
We have since welcomed new industry-led guidance to improve protections for players and meet the following Government objectives that:
purchases of loot boxes should be unavailable to all children and young people unless and until they are enabled by a parent or guardian; and
all players should have access to and be aware of spending controls and transparent information to support safe and responsible gaming.
We are working with industry and academics to monitor the implementation and effectiveness of the new guidance and will provide an update following the 12-month implementation period, and independent academic scrutiny. We continue to keep our position on possible future legislative options under review. We monitor developments in other international jurisdictions, including Belgium, although no recent discussions with Belgian counterparts have taken place.
Whilst the new guidance relates to paid loot boxes specifically, a number of the measures are relevant to in-game microtransactions more broadly, particularly for children and young people. This includes driving awareness of and uptake of parental controls, and running a three-year £1 million public information campaign to provide information to players and parents about safe and responsible play
We have also published a Video Games Research Framework to improve the evidence base on the impacts of video games, including microtransactions and player spending. The Framework outlines the research topics and priorities which we have identified as core areas in need of further research. This includes better understanding of the impact of different monetisation features on players’ experiences, and the effectiveness of mechanisms to mitigate the risk of problematic spending behaviours.
While some microtransactions share similarities with traditional gambling products, we view the ability to legitimately cash out rewards as an important distinction. In particular, the prize does not normally have real world monetary value outside of the game, and its primary utility is to enhance the in-game experience. The Gambling Commission has shown that it can and will take robust enforcement action where the trading of items obtained from in-game microtransactions does amount to unlicensed gambling. Microtransactions within video games - including loot boxes - are also subject to consumer protection legislation that protects against misleading or aggressive marketing.
May. 01 2024
Source Page: Anti-money laundering and countering the financing of terrorism: Supervision Report 2022-23Found: Commission’s supervisory activity 2.25 The Gambling Commission (GC) is the AML/CTF supervisory
May. 01 2024
Source Page: Anti-money laundering and countering the financing of terrorism: Supervision Report 2020-22Found: The Gambling Commission is also the regulator for other gambling businesses operating in Great
May. 01 2024
Source Page: GDP Monthly Estimate: February 2024Found: 55 (accomodation), 56 (food and drink services), 75 (vetinary services), 79 (travel agencies), 92 (gambling
Mentions:
1: Lucy Frazer (Con - South East Cambridgeshire) We are now one year on from the publication of the landmark gambling White Paper and the Government - Speech Link
Mentions:
1: Bob Blackman (Con - Harrow East) levy on the industry to correct the damage, or a polluter pays thing, as is being introduced for the gambling - Speech Link
Found: to members of the public, or (ii) the sale or supply of services (including facilities for gambling
Asked by: John Hayes (Conservative - South Holland and The Deepings)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Culture, Media and Sport, what steps she is taking to protect (a) children and (b) young people from gambling harm.
Answered by Stuart Andrew - Parliamentary Under Secretary of State (Department for Culture, Media and Sport)
His Majesty’s Government recognises that, while millions of people gamble without experiencing problems, for some it becomes an addiction with serious consequences. It is particularly important to take steps to protect those, particularly young people, who are at risk of experiencing gambling harm.
In April 2023 the Department for Culture, Media and Sport published a White Paper following our review of the Gambling Act 2005. The White Paper outlined a series of measures to tackle practices and products which can drive harm and to ensure that people who are at risk of gambling harm and addiction are protected. These include new, frictionless financial risk checks, a stake limit for online slots games, improvements to customer-led tools, and tougher restrictions on bonuses and direct marketing. These measures will be complemented by strengthened messaging about the risks associated with gambling. The White Paper also contained a commitment to introduce a new statutory levy paid by operators to fund research, prevention, and treatment. In July 2023 the Gambling Commission also published a vulnerability statement, outlining its approach to identifying, supporting, and protecting consumers who are in vulnerable situations.
We are working with the Gambling Commission and others to bring the measures from the White Paper into force as quickly as possible, and have already published consultations on a number of important proposals so that we can finalise details ahead of their implementation.
Mentions:
1: None factor that is emerging there.We are also doing work with my colleague Heather Wardle at Glasgow on gambling - Speech Link