Loot boxes can be bought in a wide variety of games, especially youngsters favorites such as FIFA. These games usually offer random rewards, some of which worth far more than the cost of procuring it in the first place.
According to a new report published by the House of Lords Gambling Committee, the way these purchases provide random in-game rewards to players means they should be categorized as gambling activities. The committee, therefore, called out for the government to instantly act so that they can bring loot boxes within the jurisdiction of gambling regulation.
The Royal Society of Health (RSPH) also published a report last year, indicating that the majority of young players view both participating in skin betting and buying loot boxes as forms of extremely addictive gambling.
Top games production companies have already removed the loot boxes after government intervention in some countries. For instance, Fortnite rid itself of all the version boxes last year after Netherlands and Belgium rendered them illegal gambling activities. The same year, published a paper showing that a good number of young people felt addicted to buying the loot item.
Around the world, the market cap for loot boxes in games is estimated to be worth £20 billion, and within the UK alone, the loot box market is valued at £700 million.
In light of this new report from the Lords, the UK government on its part assured the Committee of Lords that it has arranged for the future review of the Gambling Act and how it applies to loot boxes.