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<p>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.</p><p>We have since <a href="https://www.gov.uk/guidance/loot-boxes-in-video-games-update-on-improvements-to-industry-led-protections"
target="_blank">welcomed </a>new industry-led <a href="https://ukie.org.uk/loot-boxes"
target="_blank">guidance</a> to improve protections for players and meet the following
Government objectives that:</p><ul><li><p>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</p></li><li><p>all players should have access to and be aware of spending
controls and transparent information to support safe and responsible gaming.</p></li></ul><p>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.</p><p>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</p><p>We have also
published a <a href="https://www.gov.uk/government/publications/video-games-research-framework/video-games-research-framework"
target="_blank">Video Games Research Framework</a> 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.</p><p>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.</p>
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