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<p>Mystery boxes in video games, also known as loot boxes do not fall under gambling
law where the in-game items acquired are confined for use within the game and cannot
be cashed out. However, the Government is aware of concerns that loot boxes could
encourage gambling-like behaviour and longer term lead to gambling related harm, especially
amongst children, and will continue to look closely at any evidence around this issue.</p><p>
</p><p>In September 2018, 16 regulators from Europe and the USA, including the Gambling
Commission signed a declaration which outlined common concerns around gaming and gambling.
The regulators agreed to work together to monitor the characteristics of video games
and social gaming and where there is potential cross-over into gambling.</p><p> </p><p>We
welcomed the introduction last year by the VSC Ratings Board and PEGI of a new label
for video games to warn parents where they include the opportunity to make in-games
purchases such as loot boxes. Microtransactions in games—including loot boxes—are
further subject to the Consumer Protection from Unfair Trading Regulations 2008 which
protect against misleading or aggressive marketing.</p><p> </p><p>DCMS is working
closely with the games industry, agencies such as the Video Standards Council (VSC)
and others to improve online safety in games, including promoting healthy and responsible
gaming. To better understand the relationship between social media and the mental
health of children and young people up to 25 years old, the Chief Medical Officer
will be leading a systematic review to examine all relevant international research
in the area.</p><p> </p>
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