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 has had discussions with her Belgian counterpart on regulating micro-transactions in video games as gambling.
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.
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 has made an assessment of the potential impact of micro-transactions in video games on gambling behaviours 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.
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: Claire Hanna (Social Democratic & Labour Party - Belfast South)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Culture, Media and Sport, whether her Department is taking steps to help (a) mitigate the risks associated with loot boxes in video games and (b) increase awareness of the potential dangers associated with gambling for younger users.
Answered by Julia Lopez - Minister of State (Department for Science, Innovation and Technology)
Following the Government response to the call for evidence on loot boxes in video games, the Government has welcomed new industry-led guidance to improve protections for players.
We are now working closely with the industry and academics to ensure robust evaluation of implementation and the efficacy of new measures in meeting the Government’s 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 will provide an update following the 12-month implementation period and independent academic scrutiny of the guidance's implementation and efficacy.
Asked by: Lord Foster of Bath (Liberal Democrat - Life peer)
Question to the Department for Digital, Culture, Media & Sport:
To ask His Majesty's Government, following the recent breach of the Advertising Standards Authority codes by DCMS Technical Working Group members Electronic Arts, Jagex, and Hutch Games, what steps they are taking to (1) evaluate, and (2) ensure compliance with, industry-led principles and guidance on the use of paid loot boxes in computer games.
Answered by Lord Parkinson of Whitley Bay - Parliamentary Under Secretary of State (Department for Culture, Media and Sport)
Following our response to the call for evidence on loot boxes in video games, HM Government has welcomed new industry-led guidance to improve protections for all players, including young people.
Measures to protect players should ensure that the purchase of loot boxes is unavailable to all children and young people unless enabled by a parent or guardian, and that all players have access to, and can be aware of, spending controls and transparent information to support safe and responsible playing of games.
We are working closely with the industry and academia to support independent scrutiny of these new measures. The Government has agreed a 12-month implementation period and has asked the industry, co-ordinated by Ukie, to report back to DCMS on the extent to which the new measures have been implemented.
We will continue to keep our position on possible future legislative options under review, informed by academic scrutiny of the industry-led guidance. We will provide a further update following the 12-month implementation period.
Asked by: Lord Foster of Bath (Liberal Democrat - Life peer)
Question to the Department for Digital, Culture, Media & Sport:
To ask His Majesty's Government what assessment they have made of the appropriateness of Electronic Arts remaining a member of the Technical Working Group on Loot Boxes, following the ruling by the Advertising Standards Authority that it breached the CAP Code by failing to disclose the presence of in-game purchases in some of its products.
Answered by Lord Parkinson of Whitley Bay - Parliamentary Under Secretary of State (Department for Culture, Media and Sport)
His Majesty’s Government is committed to ensuring that video games can be enjoyed safely and responsibly by everyone.
The Advertising Standards Authority ruled that Electronic Arts had breached the Committee of Advertising Practice guidance on two of its adverts by failing to disclose the presence of in-game purchases including random items. We understand that Electronic Arts has responded that the error has been resolved and the adverts removed, which the Advertising Standards Authority has acknowledged.
In July 2023, video games trade body Ukie published new, industry-led guidance on loot boxes to improve player protections. The guidance was developed by a DCMS-convened Technical Working Group which brought together knowledge and expertise from major games companies and platforms operating in the UK, including Electronic Arts. The group met eight times and engaged with academics, the Games Rating Authority, the Information Commissioner’s Office, and the Competition and Markets Authority.
Asked by: Lord Foster of Bath (Liberal Democrat - Life peer)
Question to the Department for Digital, Culture, Media & Sport:
To ask His Majesty's Government what steps they are taking to monitor gambling within video games.
Answered by Lord Parkinson of Whitley Bay - Parliamentary Under Secretary of State (Department for Culture, Media and Sport)
His Majesty’s Government and the Gambling Commission continue to pay close attention to novel and emergent forms of gambling and gambling-like products, including within video games, to ensure that appropriate regulation is in place.
HM Government has welcomed new, industry-led guidance which aims to address concerns about the use of loot boxes in video games.
Measures to protect players should ensure that the purchase of loot boxes is unavailable to all children and young people unless enabled by a parent or guardian, and that all players have access to, and are aware of, spending controls and transparent information to support safe and responsible gameplay.
The Government has agreed a 12-month implementation period for the new guidance on loot boxes and has asked the industry, co-ordinated by Ukie, to report back to the Department for Culture, Media and Sport on the extent to which it has been implemented.
We will continue to keep our position on possible future legislative options under review, informed by academic scrutiny of the industry-led measures. We will provide a further update in due course, following the 12-month implementation period.
Asked by: Jamie Stone (Liberal Democrat - Caithness, Sutherland and Easter Ross)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Culture, Media and Sport, what steps her Department is taking to evaluate the (a) implementation and (b) effectiveness efficacy of industry-led measures on loot boxes.
Answered by Julia Lopez - Minister of State (Department for Science, Innovation and Technology)
Following the Government response to the call for evidence on loot boxes in video games, the Government has welcomed new industry-led guidance and its potential, if fully implemented, to meet our objectives to improve protections for players.
The Government has agreed a 12-month implementation period for the new guidance on loot boxes and has asked the industry, coordinated by Ukie, to report back to DCMS on the extent to which it has been implemented and on steps taken in areas identified for further work.
We are working closely with industry and academics to ensure robust data is available to support evaluation of these measures, supported by the Video Games Research Framework which was developed and published by DCMS.
We will provide a further update in due course, following the 12-month implementation period and informed by independent academic scrutiny of the implementation and efficacy of these measures.
Asked by: Carolyn Harris (Labour - Swansea East)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Culture, Media and Sport, if she will make an assessment of the potential implications for her policies of the study by Gabriel A. Brooks and Luke Clark entitled, The gamblers of the future? Migration from loot boxes to gambling in a longitudinal study of young adults, published in Computers in Human Behaviour, volume 141, in April 2023.
Answered by Stuart Andrew - Parliamentary Under Secretary of State (Department for Culture, Media and Sport)
His Majesty’s Government struck a balanced and evidence-led approach in our review of gambling regulation. We continue to monitor research, and have carefully considered the findings in this study. We recognise that there is a growing body of research that provides evidence of an association between loot box purchases and gambling activity, as well as evidence of a link with a variety of harms, including harmful gambling. However, research has not established whether a causal relationship exists, and there are a range of plausible explanations.
In order to address gaps in research around these and similar areas, we have developed and published the Video Games Research Framework to support high quality independent research into video games, including loot boxes. We are also introducing a statutory levy charged to gambling operators which will raise trusted, long-term funding for gambling research. We are clear that we will continue to look carefully at any further research that results from that and take action if necessary.