It's been quite a hectic month with a lot of debate around both loot boxes and microtransactions in the video games we love. Various organisations and authorities have different stances, with the Belgian Gaming Commission leading the way to get rid of loot boxes declaring that it does constitute gambling.

And the UK Gambling Commision has now released a statement explaining that they are unable to take any action because there is still a very fine line between loot boxes and considering it as gambling.

“The law sets a line between what is and is not gambling. As the regulator we patrol that line and where an activity crosses it and presents a risk to people, especially children, we have and will take robust action. Earlier this year we successfully brought the first criminal prosecution in this area in relation to Futgalaxy - a website for providing skins gambling to children (skins gambling is explained within the position paper).

A key factor in deciding if that line has been crossed is whether in-game items acquired ‘via a game of chance’ can be considered money or money’s worth. In practical terms this means that where in-game items obtained via loot boxes are confined for use within the game and cannot be cashed out it is unlikely to be caught as a licensable gambling activity. In those cases our legal powers would not allow us to step in.

However, many parents are not interested in whether an activity meets a legal definition of ‘gambling’. Their main concern is whether there is a product out there that could present a risk to their children. We are concerned with the growth in examples where the line between video gaming and gambling is becoming increasingly blurred. Where it does meet the definition of gambling it is our job to ensure that children are protected and we have lots of rules in place, like age verification requirements, to do that.

Where a product does not meet that test to be classed as gambling but could potentially cause harm to children, parents will undoubtedly expect proper protections to be put in place by those that create, sell and regulate those products. We have a long track record in keeping children safe and we are keen to share our experiences and expertise with others that have a similar responsibility. Whether gambling or not, we all have a responsibility to keep children and young people safe.”

The full statement can be found on the UK Gambling Commission website. What are your thoughts on microtransactions and loot boxes?