In other words, loot boxes will now be considered “games of chance,” which means they are subject to regulation by the Gambling Act 2005. The government must act quickly to create the regulatory framework for loot boxes and help protect children, who are the main consumers of such digital assets, some observers have said.
In arguing his case, Chairman of the Committee Lord Grade said that the group could see the dangers and how loot boxes enticed kids to gamble. He further noted that while quick actions were necessary, there was no need to overhaul the Gambling Act, as most restrictions “could be enacted today.”
Dr David Zendle, an expert on the issue, argued that either loot boxes or overspending on loot boxes caused problem gambling. This and other factors have prompted the committee to take the necessary steps towards re-regulating loot boxes.
Loot boxes have already been suspended in other jurisdictions. The national governments in Belgium and the Netherlands have considered them too dangerous. Both countries suspended loot boxes in 2018 and prohibited companies from offering them to children.
The Lords didn't fail to specify that a recent survey has indicated that some 55,000 individuals aged 11-16 were showing symptoms of problem gambling, prompting the committee to act sooner.
Meanwhile, esports and video gaming remain viable and regulated betting markets. Operators such as Cloudbet and FortuneJack, as well as Sportsbet.io offer extensive betting markets on popular games such as CS:GO, Dota 2, League of Legends, and many others.