The mobile gaming industry has seen an exponential rise in popularity, particularly in the UK, where many top-selling games are drawing significant attention. However, recent findings from a BBC investigation reveal a troubling aspect of this boom: the prevalent use of loot boxes—random in-game purchase systems that critics argue are “exploitative” and potentially foster addiction among players, especially children. Despite the Advertising Standards Agency (ASA) imposing regulations requiring clear disclosures about loot box features in advertisements, the investigation found that a staggering majority of the most successful mobile games fail to comply with these rules.
The ASA strictly prohibits advertisements that do not clearly state whether games include loot boxes, yet the BBC’s research highlighted that out of the 45 highest-grossing games available on the Google Play store, only two complied with these regulations. Dr. Jane Rigbye, CEO of the Young Gamers and Gamblers Education Trust (Ygam), expressed her concern over the findings. She emphasized the necessity for transparency in the gaming industry, stating that without robust regulation, families and players lack the essential information needed to make informed choices regarding the games they engage with.
The ASA commented on the investigation, acknowledging that it is diligently monitoring the gaming sector to assess compliance and take appropriate action. However, criticisms have emerged regarding the agency’s effectiveness. Leon Y. Xiao, a video game regulation researcher at the IT University of Copenhagen, stated that while some complaints have been upheld by the ASA, the time-consuming process often leads to non-compliance by companies despite warnings. This leaves many players unaware of the risks associated with loot boxes, which are often not explained adequately.
For context, a loot box is a digital container that players can open during gameplay, either through in-game progress or by making a payment. The contents of these loot boxes are random and unknown to the player until they are opened. Critics argue that this randomness bears a striking resemblance to gambling, particularly given a report from the Norwegian Consumer Council in 2022 that described how loot boxes often exploit consumers through predatory practices, thereby targeting vulnerable groups and increasing the risk of addiction. Despite calls for regulation, the UK government currently favors self-regulation within the gaming industry. Trade body Ukie issued guidance recommending disclosures for loot boxes ahead of purchases but has allowed the industry a year-long grace period for compliance. The investigation revealed that more than a year later, most mobile games with loot boxes still fail to abide by these guidelines.
The BBC’s analysis showed that among the top 45 games, 26 were identified as including loot boxes. Out of these, only two titles mentioned loot boxes in their advertisements, raising concerns about the ongoing issue of non-disclosure. For instance, “Monopoly GO,” the highest-grossing game that includes loot boxes, has reportedly been downloaded over 50 million times but did not communicate its loot box features in its advertisements.
Experts like Adrian Hon, the head of game developer Six to Start, contend that the gaming industry has a history of evading regulations that could hinder their revenue streams. He pointed out the difficulties faced by many players, including children, in managing their spending on these loot boxes, which are often designed to encourage habitual spending. This sentiment was echoed by Zoë Osmond, CEO of GambleAware, who voiced alarm over the normalization of gambling-like activities among children in digital spaces.
The concerning implications of these practices cannot be overstated, as early exposure to gambling-like content may predispose younger audiences to experience gambling-related harms in the future. As mobile games generate substantial revenue—estimated to reach around $15 billion annually—it becomes increasingly necessary for regulators and industry leaders to foster a safer digital environment for players, particularly children. The lack of compliance with advertisement regulations surrounding loot boxes remains a significant challenge, highlighting the urgent need for enhanced oversight and responsible practices within the mobile gaming landscape.
