Loot boxes: Games companies agree to restrict access in UK

The UK games industry has unveiled plans to try and restrict access to loot boxes for children.

Loot boxes allow players to buy in-game extras that are assigned at random, but some are concerned about their relationship with problem gambling.

Ukie, the body that represents games companies, says the proposals will "improve protections for all players".

They argue the 11 new guidelines "underline the industry's commitment to safe and responsible play".

Loot boxes are a way of spending real money to get digital items like new characters, in-game clothes, weapons, moves or experience points. Exactly what you're getting with each box is random. Some compare them to buying a Kinder Egg or a packet of football stickers. Others say it's like using a slot machine.

The UK government has spent three years figuring out what to do about them - from threats to ban their use for under-18s in the UK, to an edict last summer that games companies must create new rules to protect children and young people.

Are they a gateway to gambling addiction? Or just a fun mechanic that enhances players' gaming experiences?

Some countries, like Belgium and the Netherlands, think the former and have banned them.

Last July, then Culture Secretary Nadine Dorries said that because the evidence about loot boxes was still emerging, "direct government intervention may risk unintended consequences".

The games industry should come up with measures itself before any new laws are introduced, she said.

It's taken nearly 12 months for those measures to be agreed upon.

Ukie has published principles that it believes will allow the industry to self-regulate the use of loot boxes.

The first is a commitment to make available technological controls to effectively restrict anyone under 18 from acquiring a loot box without the consent or knowledge of a parent or guardian. Many of these controls are already available on games platforms but aren't as widely used as they could be. The new principles set out best-practice for their use in an effort to increase take-up.

The second is to drive awareness of those controls with a public information campaign. An expert panel will be set up to share best practices on age assurance issues.

Ukie says games companies will disclose the presence of loot boxes before someone chooses to buy a title, and games will have to show clear probabilities before the purchase of a loot box.

The plans include rules on how loot boxes should be presented and a commitment to more lenient refund policies.

There is also a proposal to tackle the black market that surrounds these purchases and do more research about their impact and use.

Progress will be reviewed in 12 months.

Some content creators have built careers on making exciting and entertaining videos around the use of loot boxes, and many players enjoy buying them responsibly every day.

These regulations are largely designed to protect children and young people. However, they're not the only people who can develop an unhealthy relationship with the in-game mechanic. For Dave Sproson, buying loot boxes became a problem as an adult.

He first came across one in a mobile game based on his favourite anime show. Soon he was getting frustrated as his progress began to slow, and so started buying boxes as a "short cut" to level-up his character.

He would justify the purchases to himself by saying he was spending money to save the time it would take to enhance his characters through gameplay alone. For Mr Sproson, buying a loot box was the "same feeling as scoring a goal in football".

"As with any addiction, there's kind of an invisible line that's hard to pinpoint when I actually crossed it," he said.

"I started to realise that it was getting out of control when I could no longer sustain buying loot boxes with my income. I had to resort to using credit cards, which I'd never had before. I used payday loans. Over a period of 12 months, I had 28 from various different lenders."

After a £10,000 loan, he was struggling to keep his problem hidden. "I started defaulting on loans. I forged my partner's signature to get a guarantee for a new loan."

Mr Sproson's partner found out about his financial troubles with their baby due in a matter of weeks. Money earmarked for a new house and pushchairs was spent on clearing up the debt.

"We had to go to family and tell them what had happened to ask for help," he said. "All along this journey there were times I lay in bed at night and I cried. I knew I had a son coming, I knew my partner wanted us to go for a house and I knew my credit score was in the toilet and I knew I'd gone too far.

"I was disgusted with myself, I was terrified. I didn't know if I would be around my son when he was born, whether I would be allowed? Worse than how I was feeling was how it made her feel - this was someone who trusted me unconditionally with money, with love and everything else and I'd betrayed it all."

The vast majority of people who buy loot boxes in games don't end up with a compulsion like this. For many it is a fun and frivolous element of their gaming experience. However cases like it, accompanied with criticism that some games have become "pay-to-win" and concerns over the addictive nature of the mechanic, were the basis of the government wanting action.

By 2025, loot boxes will be responsible for generating an estimated £16bn in revenue for games companies across the world.

Getting the balance right between protecting vulnerable users and allowing games companies the freedom to flourish culturally and economically has clearly been difficult. Given the length of time it has taken for any action, it is clear that the industry and the government have had different ideas about what should be done.

In a statement, John Whittingdale, minister for the creative industries, said: "We've been clear the video games industry needs to do more to protect children and adults from the harms associated with loot boxes.

"These new principles are a big step forward to make sure players can enjoy video games responsibly and safely. I look forward to seeing games companies put the plans into action and will be watching their progress closely."

Mr Sproson now works as head of gambling in a risk management company. He and his partner reconciled and are now married - they have strict rules to restrict his spending. He bought his last loot box in July 2014.

"I'm still a big gaming fan and I still play now - with my seven-year-old son. But I make sure we play games where I can disable purchases. In my opinion you need to classify loot boxes as gambling. If you look at a loot box and look at a slot machine, there's no real difference."