Asked by: Ronnie Cowan (Scottish National Party - Inverclyde)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Culture, Media and Sport, whether her Department plans to take steps to help prevent prevent a potential normalisation of gambling among young people via loot boxes in Apps and video games.
Answered by Julia Lopez - Minister of State (Department for Science, Innovation and Technology)
Following the Government response to the call for evidence on loot boxes in video games, the Government has welcomed new industry-led guidance that aims to address the concerns identified for all players, including young people.
Measures to protect players should ensure that the purchase of loot boxes should be unavailable to all children and young people unless enabled by a parent or guardian, and all players should have access to, and be aware of, spending controls and transparent information to support safe and responsible gameplay.
The Government has agreed a 12-month implementation period for the new guidance on loot boxes and has asked the industry, coordinated by Ukie, to report back to DCMS on the extent to which it has been implemented.
We will continue to keep our position on possible future legislative options under review, informed by academic scrutiny of the industry-led measures. We will provide a further update in due course, following the 12-month implementation period.
Under the Gambling Act 2005, gambling is defined as playing a game of chance for a prize of money or money’s worth. The prizes that can be won via most loot boxes do not have a monetary value, cannot be cashed-out, and are of value only within the context of the game. They therefore do not meet that definition. As set out in the Government’s response to the call for evidence, there are also a number of disadvantages to changing the definition of gambling including the likelihood of capturing unintended activities, creating logistical difficulties in increasing the remit of the Gambling Commission, and undermining gambling taxation.
Asked by: Ronnie Cowan (Scottish National Party - Inverclyde)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Culture, Media and Sport, whether she has made an assessment of the relationship between (a) the use of in-game loot boxes and (b) the likelihood of future gambling related harms amongst young people.
Answered by Julia Lopez - Minister of State (Department for Science, Innovation and Technology)
Following the Government response to the call for evidence on loot boxes in video games, the Government has welcomed new industry-led guidance that aims to address the concerns identified for all players, including young people.
Measures to protect players should ensure that the purchase of loot boxes should be unavailable to all children and young people unless enabled by a parent or guardian, and all players should have access to, and be aware of, spending controls and transparent information to support safe and responsible gameplay.
The Government has agreed a 12-month implementation period for the new guidance on loot boxes and has asked the industry, coordinated by Ukie, to report back to DCMS on the extent to which it has been implemented.
We will continue to keep our position on possible future legislative options under review, informed by academic scrutiny of the industry-led measures. We will provide a further update in due course, following the 12-month implementation period.
Under the Gambling Act 2005, gambling is defined as playing a game of chance for a prize of money or money’s worth. The prizes that can be won via most loot boxes do not have a monetary value, cannot be cashed-out, and are of value only within the context of the game. They therefore do not meet that definition. As set out in the Government’s response to the call for evidence, there are also a number of disadvantages to changing the definition of gambling including the likelihood of capturing unintended activities, creating logistical difficulties in increasing the remit of the Gambling Commission, and undermining gambling taxation.
Asked by: Angela Crawley (Scottish National Party - Lanark and Hamilton East)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Culture, Media and Sport, whether her Department (a) has and (b) plans to make an assessment of the potential impact of micro-transactions in video games on levels of spending among children and young people.
Answered by Julia Lopez - Minister of State (Department for Science, Innovation and Technology)
The Government monitors the impact of microtransactions in video games on players, including children and young people. In 2020, we launched a call for evidence on loot boxes in video games which found an association between purchasing loot boxes and problem gambling, although no causal link has been found.
We have since welcomed new industry-led guidance to improve protections for players and meet the following Government objectives that:
purchases of loot boxes should be unavailable to all children and young people unless and until they are enabled by a parent or guardian; and
all players should have access to and be aware of spending controls and transparent information to support safe and responsible gaming.
We are working with industry and academics to monitor the implementation and effectiveness of the new guidance and will provide an update following the 12-month implementation period, and independent academic scrutiny. We continue to keep our position on possible future legislative options under review. We monitor developments in other international jurisdictions, including Belgium, although no recent discussions with Belgian counterparts have taken place.
Whilst the new guidance relates to paid loot boxes specifically, a number of the measures are relevant to in-game microtransactions more broadly, particularly for children and young people. This includes driving awareness of and uptake of parental controls, and running a three-year £1 million public information campaign to provide information to players and parents about safe and responsible play
We have also published a Video Games Research Framework to improve the evidence base on the impacts of video games, including microtransactions and player spending. The Framework outlines the research topics and priorities which we have identified as core areas in need of further research. This includes better understanding of the impact of different monetisation features on players’ experiences, and the effectiveness of mechanisms to mitigate the risk of problematic spending behaviours.
While some microtransactions share similarities with traditional gambling products, we view the ability to legitimately cash out rewards as an important distinction. In particular, the prize does not normally have real world monetary value outside of the game, and its primary utility is to enhance the in-game experience. The Gambling Commission has shown that it can and will take robust enforcement action where the trading of items obtained from in-game microtransactions does amount to unlicensed gambling. Microtransactions within video games - including loot boxes - are also subject to consumer protection legislation that protects against misleading or aggressive marketing.
Asked by: Angela Crawley (Scottish National Party - Lanark and Hamilton East)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Culture, Media and Sport, whether she has had discussions with her Belgian counterpart on regulating micro-transactions in video games as gambling.
Answered by Julia Lopez - Minister of State (Department for Science, Innovation and Technology)
The Government monitors the impact of microtransactions in video games on players, including children and young people. In 2020, we launched a call for evidence on loot boxes in video games which found an association between purchasing loot boxes and problem gambling, although no causal link has been found.
We have since welcomed new industry-led guidance to improve protections for players and meet the following Government objectives that:
purchases of loot boxes should be unavailable to all children and young people unless and until they are enabled by a parent or guardian; and
all players should have access to and be aware of spending controls and transparent information to support safe and responsible gaming.
We are working with industry and academics to monitor the implementation and effectiveness of the new guidance and will provide an update following the 12-month implementation period, and independent academic scrutiny. We continue to keep our position on possible future legislative options under review. We monitor developments in other international jurisdictions, including Belgium, although no recent discussions with Belgian counterparts have taken place.
Whilst the new guidance relates to paid loot boxes specifically, a number of the measures are relevant to in-game microtransactions more broadly, particularly for children and young people. This includes driving awareness of and uptake of parental controls, and running a three-year £1 million public information campaign to provide information to players and parents about safe and responsible play
We have also published a Video Games Research Framework to improve the evidence base on the impacts of video games, including microtransactions and player spending. The Framework outlines the research topics and priorities which we have identified as core areas in need of further research. This includes better understanding of the impact of different monetisation features on players’ experiences, and the effectiveness of mechanisms to mitigate the risk of problematic spending behaviours.
While some microtransactions share similarities with traditional gambling products, we view the ability to legitimately cash out rewards as an important distinction. In particular, the prize does not normally have real world monetary value outside of the game, and its primary utility is to enhance the in-game experience. The Gambling Commission has shown that it can and will take robust enforcement action where the trading of items obtained from in-game microtransactions does amount to unlicensed gambling. Microtransactions within video games - including loot boxes - are also subject to consumer protection legislation that protects against misleading or aggressive marketing.
Asked by: John Hayes (Conservative - South Holland and The Deepings)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Culture, Media and Sport, whether she has had recent discussions with Cabinet colleagues on investigations of gambling-related suicides.
Answered by Stuart Andrew - Parliamentary Under Secretary of State (Department for Culture, Media and Sport)
His Majesty’s Government recognises that, while millions of people gamble without experiencing problems, for some it becomes an addiction with serious consequences. It is particularly important to take steps to protect those, particularly young people, who are at risk of experiencing gambling harm.
In April 2023 the Department for Culture, Media and Sport published a White Paper following our review of the Gambling Act 2005. The White Paper outlined a series of measures to tackle practices and products which can drive harm and to ensure that people who are at risk of gambling harm and addiction are protected, including a commitment to introduce a new statutory levy paid by operators to fund research, prevention, and treatment. We are working at pace with the Gambling Commission to bring these measures into force as quickly as possible.
In October 2023 the Gambling Commission published its decision to introduce a specific reporting requirement requiring gambling businesses to inform the Commission when they become aware of a person who has gambled with them has died by suicide. This requirement will come into force on 1 April 2024. While it is the role of the Coroner to investigate such death, where the Commission is made aware that a customer of a licensee has died by suicide, it will consider whether there is evidence of suspected regulatory failings and whether it would be appropriate and proportionate to take any regulatory action.
Asked by: Angela Crawley (Scottish National Party - Lanark and Hamilton East)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Culture, Media and Sport, whether she plans to increase regulation of micro-transactions in video games.
Answered by Julia Lopez - Minister of State (Department for Science, Innovation and Technology)
The Government monitors the impact of microtransactions in video games on players, including children and young people. In 2020, we launched a call for evidence on loot boxes in video games which found an association between purchasing loot boxes and problem gambling, although no causal link has been found.
We have since welcomed new industry-led guidance to improve protections for players and meet the following Government objectives that:
purchases of loot boxes should be unavailable to all children and young people unless and until they are enabled by a parent or guardian; and
all players should have access to and be aware of spending controls and transparent information to support safe and responsible gaming.
We are working with industry and academics to monitor the implementation and effectiveness of the new guidance and will provide an update following the 12-month implementation period, and independent academic scrutiny. We continue to keep our position on possible future legislative options under review. We monitor developments in other international jurisdictions, including Belgium, although no recent discussions with Belgian counterparts have taken place.
Whilst the new guidance relates to paid loot boxes specifically, a number of the measures are relevant to in-game microtransactions more broadly, particularly for children and young people. This includes driving awareness of and uptake of parental controls, and running a three-year £1 million public information campaign to provide information to players and parents about safe and responsible play
We have also published a Video Games Research Framework to improve the evidence base on the impacts of video games, including microtransactions and player spending. The Framework outlines the research topics and priorities which we have identified as core areas in need of further research. This includes better understanding of the impact of different monetisation features on players’ experiences, and the effectiveness of mechanisms to mitigate the risk of problematic spending behaviours.
While some microtransactions share similarities with traditional gambling products, we view the ability to legitimately cash out rewards as an important distinction. In particular, the prize does not normally have real world monetary value outside of the game, and its primary utility is to enhance the in-game experience. The Gambling Commission has shown that it can and will take robust enforcement action where the trading of items obtained from in-game microtransactions does amount to unlicensed gambling. Microtransactions within video games - including loot boxes - are also subject to consumer protection legislation that protects against misleading or aggressive marketing.
Mentions:
1: Stuart Andrew (Con - Pudsey) Government will today publish their response to the consultation on measures relating to the land-based gambling - Speech Link
Asked by: Ronnie Cowan (Scottish National Party - Inverclyde)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Culture, Media and Sport, on what evidential basis the decision not to define loot boxes as gambling as part of the Gambling White Paper was made.
Answered by Julia Lopez - Minister of State (Department for Science, Innovation and Technology)
Following the Government response to the call for evidence on loot boxes in video games, the Government has welcomed new industry-led guidance that aims to address the concerns identified for all players, including young people.
Measures to protect players should ensure that the purchase of loot boxes should be unavailable to all children and young people unless enabled by a parent or guardian, and all players should have access to, and be aware of, spending controls and transparent information to support safe and responsible gameplay.
The Government has agreed a 12-month implementation period for the new guidance on loot boxes and has asked the industry, coordinated by Ukie, to report back to DCMS on the extent to which it has been implemented.
We will continue to keep our position on possible future legislative options under review, informed by academic scrutiny of the industry-led measures. We will provide a further update in due course, following the 12-month implementation period.
Under the Gambling Act 2005, gambling is defined as playing a game of chance for a prize of money or money’s worth. The prizes that can be won via most loot boxes do not have a monetary value, cannot be cashed-out, and are of value only within the context of the game. They therefore do not meet that definition. As set out in the Government’s response to the call for evidence, there are also a number of disadvantages to changing the definition of gambling including the likelihood of capturing unintended activities, creating logistical difficulties in increasing the remit of the Gambling Commission, and undermining gambling taxation.
Asked by: Iain Duncan Smith (Conservative - Chingford and Woodford Green)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Culture, Media and Sport, whether she has made a recent assessment of the potential impact of gambling advertising on (a) gambling-related harms and (b) levels of (i) at-risk and (ii) problem gambling in young people.
Answered by Stuart Andrew - Parliamentary Under Secretary of State (Department for Culture, Media and Sport)
In our approach to gambling advertising, we have struck a balanced and evidence-led approach which tackles aggressive advertising that is most likely to appeal to children, while recognising that advertising is an entirely legitimate commercial practice for responsible gambling firms.
In April last year, HM Government published a White Paper on gambling which outlined a comprehensive package of reforms to make gambling safer following an exhaustive assessment of the evidence, including on gambling advertising. We concluded that further action on advertising was needed, which is why we and the Gambling Commission are introducing measures to tackle the most aggressive and harmful advertising practices by preventing bonuses being constructed and targeted in harmful ways, giving customers more control over the marketing they receive, and introducing messaging about the risks associated with gambling.
This supplements the already robust rules in place to ensure that gambling advertising is socially responsible and that it cannot be targeted at or strongly appeal to children. This includes specific licence conditions for operators, including the requirement to abide by the UK Advertising Codes, which further regulate how gambling operators advertise. The UK Advertising Codes were strengthened in 2022, with new protections for children and vulnerable adults.
Correspondence May. 24 2024
Committee: Culture, Media and Sport Committee (Department: Department for Digital, Culture, Media & Sport)Found: Letter from Rt Hon Stuart Andrew MP, Minister for Sport, Gambling and Civil Society, relating to Equity