Should loot boxes be considered gambling or can Self-Regulation and Corporate Social Responsibility solve the loot box issue? A review of current UK law and international legislation

Abstract

Loot boxes are an important form of monetization in the Video Game Industry (VGI). Loot boxes became controversial since the release of Star Wars Battlefront II in 2017 causing many jurisdictions to investigate loot boxes as a form of gambling. This article will highlight how loot boxes might be classified as a form of gambling in the UK under the Gambling Act 2005 but will examine alternate jurisdictions for guidance on the stipulation of ‘money's worth’ in section 6(5)(a) of the Gambling Act 2005 and whether money's worth has to be a quantitative amount or a more intrinsic value. This article will also examine soft law approaches in managing the loot box issue such as Self-Regulation and Corporate Social Responsibility. However, from this article one can see that the loot box issue is far from being solved and the larger issue of predatory monetization arises. This indicates even if the loot box issue is solved, users might still be harmed by the VGI using other monetization methods which are predatory and addictive.