UK Gambling Commission says loot boxes are not gambling

The UK Gambling Commission has taken a different  view to that of Belgian and Australian regulators regarding loot boxes in video games and whether these constitute gambling (see previous reports), saying that it does not believe the in-game rewards fall under the definition of “licensable gambling activity.”

The Commission has pointed out that the mystery prizes unlocked in loot boxes are usable only within the games in which they are won, can’t be cashed-out, and that therefore these elements do not fit the definition of gambling.

However, the Commission has noted its concern, saying that the boundary between video gaming and gambling is becoming increasingly blurred, and warning that its mandate is to step in should the practice evolve into a form that meets the definition of gambling under UK law.

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