BBC: UK Gambling Commission Does Not See Lootboxes to Be A Form of Gambling
Earlier this week, BBC News reported that the UK gambling commission does not consider lootboxes to be a form of gambling. While most people are outraged, others are glad that these onerous regulations stay out of the video games industry.
“The UK gambling watchdog has told MPs that it does not currently oversee the purchase of in-game content like Fifa player packs and video game lootboxes. This is because there is no official way to monetise what is inside them. A prize has to be either money or have monetary value in order for it to fall under gambling legislation.”
It’s not literally traditional gambling by definition, the concept is still largely the same as gambling. Even though the loophole exists where third party companies that buy and sell in-game content or enable it to be used as virtual currency hav been around for quite a while..
There are two definitions of gambling in the Merriam-Webster Dictionary, one is “playing against odds for money or property” the other is “playing against odds for a desired result”.
The UK gambling commission just takes the first as its foot-down definition; while multiple other governments take the second. They believe there doesn’t need to be money involved in the win, but something the player desires. That pretty much matches the description for lootboxes entirely.
While under current UK gambling laws, this result was expected.
All this comes just one day before Rockstar Games releases an update for Grand Theft Auto V (in most countries) that adds a multi-floor casino to the game where table games and slot machines can be played with real or in-game currency. No GTA money or chips can be cashed out for real-world currency that is, which is notable, because there is no legitimate way to monetize their virtual contents after purchase.
As we wait to see if UK politicians put forward legislation to update gambling laws so that lootboxes are covered under them in the ever-changing world of technology, we’ll still be here and on the lookout.
