Loot boxes are special features available in certain video games in which players are allowed to purchase in-game boxes which contain virtual items used in order to enhance the player’s winning chance and game experience. However, such virtual items are unknown to the player until after he buys the loot box thus constituting an element of chance.
The Belgian Gaming Commission explained that buying such loot boxes with real money is a form of online gambling and is dangerous especially when considering the fact that games like FIFA are also played by a number of children.
Justice Minister Geens has also expressed his concern stating “mixing gambling and gaming, especially at a young age, is dangerous for the mental health of the child.”
Arguably, if one had to consider the benefits of a ban of loot boxes then one should definitely mention the fact that loot boxes are really and truly a micro-transaction with a gambling machine which is intended to generate more sales. Undeniably, opening a loot box is exciting since you are not aware of the items you will be getting and if you fail to get the item you want you can always roll again. Particularly, loot boxes can be problematic especially when the player pays for such loot box but ends up with products which he does not really want. Generally, loot boxes have also been criticised due to their anti-consumer practices, especially for being predatory as they push players into buying more products.
The counter argument points out that loot boxes are a means of profit for the gaming industry thus enhancing development, especially by providing the player with the exciting element of risk, luck and reward to gain an edge over other players.
Loot boxes are also considered by some as creating an additional element of fun to games and finally it can be argued that such loot boxes are not compulsory and it’s up to the player to choose whether or not to buy them.
Within the Maltese context, gambling is taken very seriously indeed as may be seen by a close examination of the Player Protection Directive (Directive 2 of 2018) which aims to ensure responsible gaming.
It provides inter alia that Business to Consumer licensees must necessarily make available to players means by which a player can determine whether they have a gambling problem or not.
The directive highlights that such licensees must also include responsible gaming messages, advertisements and logos on the importance of responsible gaming and information on organisations which aids persons with a gambling problem.
They shall also provide a procedure whereby a player may at any time exclude himself from playing for a definite or indefinite period of time.
The issues surrounding the loot boxes controversy has instigated international action. In fact, Malta has recently signed an agreement to address gambling risks in games. The signatories include Latvia, Czech Republic, Spain, France, Jersey, Gibraltar, Portugal, Ireland, Isle of Man, U.K, Netherlands, Norway, Poland, Austria and the United States’ Washington State.
The agreement aims at finding solutions to stop in-game gambling and is described as a “Declaration of gambling regulators on the concerns related to the blurring of lines between gambling and gaming”.
Neil McArthur Chief Executive of the UK Gambling Commission has made the folllwing statement : “We have joined forces to call on video games companies to address the clear public concern around the risks gambling and some video games can pose to children.
We encourage video games companies to work with their gambling regulators and take action now to address those concerns to make sure that consumers, and particularly children, are protected.”
This agreement is the first international attempt to regulate the gambling controversy in video games.
