Asked by: Lord Foster of Bath (Liberal Democrat - Life peer)
Question to the Department for Digital, Culture, Media & Sport:
To ask His Majesty's Government, following further breaches of the Advertising Standards Authority codes on publicising the availability of loot boxes by members of the DCMS technical working group on loot boxes, what steps they will take to ensure that the codes and their oversight are strengthened.
Answered by Baroness Twycross - Baroness in Waiting (HM Household) (Whip)
The Advertising Standards Authority (ASA) and the Committee of Advertising Practice (CAP) are responsible for setting and enforcing the UK Advertising Codes and are independent of the government.
The ASA takes firm action to ban adverts for loot boxes that are in breach of their codes and has published comprehensive guidance for advertisers of in-game purchasing. The ASA is assessing the nature and scale of ads that fail to inform the audience of in-game purchasing, and considering further action through individual investigations or enforcement activity conducted by CAP Compliance teams.
We are committed to ensuring that purchases of loot boxes should not be available to children and young people unless and until they are enabled by a parent or guardian; and that all players should have access to and be aware of spending controls and transparent information to support safe and responsible gaming.
In July 2023, the previous Government agreed to new industry-led guidance produced by a DCMS-convened Technical Working Group (TWG) of video game developers ; a 12 month implementation period ended in July 2024. The TWG is preparing a report on industry implementation of the measures, which we urge all video games companies to adopt in full. We are separately commissioning independent academic research to assess the effectiveness of the new guidance in improving player protections and will consider whether further action is required when this research is complete.
Asked by: Thérèse Coffey (Conservative - Suffolk Coastal)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Culture, Media and Sport, what steps she is taking to help support the growth of creative industries in (a) Suffolk and (b) Suffolk Coastal constituency.
Answered by Julia Lopez - Shadow Secretary of State for Culture, Media and Sport
The UK Government has a clear plan to grow the creative industries by a further £50 billion and support another 1 million jobs by 2030. This was set out in June 2023 in the Creative Industries Sector Vision, which was accompanied by £77 million of new funding to support the sector’s growth. This is on top of a range of tax reliefs introduced or expanded since 2010 covering film, television, animation, video games, orchestras, theatres and more.
Creative Industries GVA grew at more than twice the rate of UK GVA between 2010 and 2022 (50.3% vs 21.5%), and helped support more than a million new jobs since 2010.
Measures in the Sector Vision include the £28.4 million Create Growth Programme (CGP) to support high-growth creative businesses in twelve English regions outside London to scale up and become investment ready. The CGP is being delivered in twelve local area partnerships, including Suffolk.
It also includes £1 million for the Creative Careers Programme, which raises young people’s awareness of creative careers and pathways by providing specialist advice and information through a range of industry-led engagement. It is delivered in regions around England, including Suffolk.
The Arts Council England Investment Programme is also investing £444 million each year into arts and culture in England. The Arts Council is providing around £5.36 million per year to cultural organisations in Suffolk, of which over £1.6m allocated to cultural organisations in Coastal Suffolk.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Culture, Media and Sport, if she will take steps to help support companies in the gaming industry that use artificial intelligence to innovate.
Answered by Julia Lopez - Shadow Secretary of State for Culture, Media and Sport
The UK Government has a clear plan to grow the creative industries by a further £50 billion and support another 1 million jobs by 2030. This was set out in June 2023 in the Creative Industries Sector Vision, which was accompanied by £77 million of new funding to support the sector’s growth. This is on top of a range of tax reliefs introduced or expanded since 2007 covering film, television, animation, video games, orchestras, theatres and more.
His Majesty’s Government is working across Departments to develop an approach on artificial intelligence and copyright which allows this technology and the creative industries - including video games - to grow in partnership.
The Sector Vision includes an objective to increase public and private investment in creative industries’ innovation, contributing to the UK increasing its research and development (R&D) expenditure to drive R&D-led innovation. In the 2023 Autumn Statement, Her Majesty’s Treasury also announced a DCMS-led review on public investment in R&D spending for the creative industries.
The Sector Vision is supported by £310 million in Government spending, including the following support for AI innovation across the creative industries, including video games:
£76.5 million CoSTAR programme - an infrastructure network for world-class R&D in screen and performance technology. The new national network of five CoSTAR Labs includes the Realtime Lab in Dundee which will bring together local video games development expertise with academic expertise in R&D and AI at Abertay University and the University of Edinburgh.
£50 million Creative Clusters programme - joining up academics with business in the creative sector to drive innovation and research to improve growth.
£30 million Creative Catalyst programme - delivering small scale innovation funding to creative businesses.
In the UK Innovation Strategy the creative industries, including video games, are identified as critical to the government’s ambition to make the UK a global hub for innovation, engaging in innovation at a higher rate than other sectors and more productive than the UK average. Innovate UK has funded £100m through the BridgeAI programme, helping businesses in priority sectors, including the creative industries, to harness the power of AI and unlock their full potential.
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 - Shadow Secretary of State for Culture, Media and Sport
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 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 - Shadow Secretary of State for Culture, Media and Sport
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 her Department has made an assessment of the potential impact of micro-transactions in video games on gambling behaviours among children and young people.
Answered by Julia Lopez - Shadow Secretary of State for Culture, Media and Sport
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 plans to increase regulation of micro-transactions in video games.
Answered by Julia Lopez - Shadow Secretary of State for Culture, Media and Sport
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: Claire Hanna (Social Democratic & Labour Party - Belfast South and Mid Down)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Culture, Media and Sport, whether her Department is taking steps to help (a) mitigate the risks associated with loot boxes in video games and (b) increase awareness of the potential dangers associated with gambling for younger users.
Answered by Julia Lopez - Shadow Secretary of State for Culture, Media and Sport
Following the Government response to the call for evidence on loot boxes in video games, the Government has welcomed new industry-led guidance to improve protections for players.
We are now working closely with the industry and academics to ensure robust evaluation of implementation and the efficacy of new measures in meeting the Government’s 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 will provide an update following the 12-month implementation period and independent academic scrutiny of the guidance's implementation and efficacy.
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, what steps she is taking to help support the growth of creative industries in (a) Lincolnshire and (b) the East Midlands.
Answered by Julia Lopez - Shadow Secretary of State for Culture, Media and Sport
The UK Government has a clear plan to grow the creative industries by a further £50 billion and support another 1 million jobs by 2030. This was set out in June 2023 in the Creative Industries Sector Vision, which was accompanied by £77 million of new funding to support the sector’s growth. This is on top of a range of tax reliefs introduced or expanded since 2010 covering film, television, animation, video games, orchestras, theatres and more.
Creative Industries GVA grew at more than twice the rate of UK GVA between 2010 and 2022 (50.3% vs 21.5%), and helped support more than a million new jobs since 2010.
Measures in the Sector Vision include the £28.4 million Create Growth Programme (CGP) to support high-growth creative businesses in twelve English regions outside London to scale up and become investment ready. The CGP is being delivered in twelve local area partnerships, including Leicester and Leicestershire Enterprise Partnership in the East Midlands.
It also includes £950k for the Creative Careers Programme, which raises young people’s awareness of creative careers and pathways by providing specialist advice and information through a range of industry-led engagement. It is delivered in regions around England, including the East Midlands (Derbyshire and Nottinghamshire, Leicester and Leicestershire and Greater Lincolnshire).
It includes £50 million announced for the second wave of the Creative Clusters Programme, designed to deliver innovation and R&D funding across the UK. This builds on the original £56 million programme initiated in 2018.
The Arts Council England 2023-2026 Investment Programme is also investing £444 million each year into arts and culture in England and is providing around £22 million per year to cultural organisations in the East Midlands, including Lincolnshire.
Asked by: Lord Foster of Bath (Liberal Democrat - Life peer)
Question to the Department for Digital, Culture, Media & Sport:
To ask His Majesty's Government, following the recent breach of the Advertising Standards Authority codes by DCMS Technical Working Group members Electronic Arts, Jagex, and Hutch Games, what steps they are taking to (1) evaluate, and (2) ensure compliance with, industry-led principles and guidance on the use of paid loot boxes in computer games.
Answered by Lord Parkinson of Whitley Bay
Following our response to the call for evidence on loot boxes in video games, HM Government has welcomed new industry-led guidance to improve protections for all players, including young people.
Measures to protect players should ensure that the purchase of loot boxes is unavailable to all children and young people unless enabled by a parent or guardian, and that all players have access to, and can be aware of, spending controls and transparent information to support safe and responsible playing of games.
We are working closely with the industry and academia to support independent scrutiny of these new measures. The Government has agreed a 12-month implementation period and has asked the industry, co-ordinated by Ukie, to report back to DCMS on the extent to which the new measures have been implemented.
We will continue to keep our position on possible future legislative options under review, informed by academic scrutiny of the industry-led guidance. We will provide a further update following the 12-month implementation period.