Getty Images
The UK's most popular mobile games are being advertised without disclosing that they contain loot boxes – random in-game purchases that critics say are “exploitative” and “promoting addiction”.
The regulator, the Advertising Standards Agency (ASA), says it will ban and remove adverts that do not clearly state whether or not a game contains a loot box.
But a BBC investigation found that only two of the 45 top-grossing games in the Google Play Store actually followed these rules.
Dr Jane Rigbye, chief executive of the Young Gamers & Gamblers Education Trust (Ygam), described the findings as “deeply concerning”.
“In the absence of robust gaming regulation, it is essential that games provide clear and transparent information about their features, allowing parents and players to make informed decisions,” he said. she declared.
In a statement, the ASA said: “This is an ongoing area of our work, and we are closely monitoring the sector to uncover the extent of compliance and act accordingly. »
However, some say the regulator does not have the means to solve the problem.
“The ASA, although they have upheld some complaints, takes a long time to properly deal with all these things – they go to a business and say 'you should comply', but they don't comply.” , said Leon Y Xiao. , researcher in video game regulation at the IT University of Copenhagen.
“People jump into a video game without knowing the potential risks, and that assumes they even understand the risk of loot boxes.”
What is a loot box?
Loot boxes contain random digital items that players can only reveal during gameplay or – more controversially – by making a payment.
Game makers have previously defended them as being akin to a chocolate egg containing a plastic toy, with children not knowing exactly what they are getting until the egg is purchased and opened.
But critics say it is actually a form of gambling, with a 2022 report from the Norwegian Consumer Council concluding that they “often involve the exploitation of consumers through predatory mechanisms, promoting addiction, targeting vulnerable consumer groups and more.”
The same year, the British government resisted pressure to regulate loot boxes, saying the video games industry could self-regulate instead.
Trade body Ukie published guidelines in July 2023, including a requirement to disclose loot boxes before purchasing games, which the industry had a year to comply with.
But more than 12 months later, the BBC found that the vast majority of major mobile games containing loot boxes are still flouting the rules, with most games only revealing their presence if potential players press a small information button on the Play Store.
Getty Images
Loot boxes are expected to generate around $15bn (£11.8bn) a year for gaming companies.
Adrian Hon, director of game developer Six to Start, said the games industry had a history of “ignoring or conveniently forgetting regulations that might interfere with their ability to sell to gamers.”
“We know that many people, including children, struggle with overspending on loot boxes,” he said, adding that they were deliberately designed to “create a habit.”
“The least gaming companies can do is disclose the presence of loot boxes, but they won't even do that – it's an indictment of their priorities and a lack of care for vulnerable players. “
Non-compliance
The BBC checked adverts for the 45 top-grossing games on Google's Play Store, which, along with Apple's App Store, is where the vast majority of people access mobile games.
Of those 45, 26 were labeled as including loot boxes – 22 of which were actively advertised at the same time.
However, only two of these titles specified the presence of loot boxes in their advertisements.
The Play Store's top-grossing game containing loot boxes, Monopoly GO, was one of those, not to mention random in-game purchases, in its ads.
The game has been downloaded more than 50 million times, generating more than $3 billion (£2.37 billion) in revenue according to the intellectual property's owner, Hasbro.
Mr Xiao told the BBC the findings were in line with preliminary findings from his own research, which also found that around 90% of games containing loot boxes do not disclose it in their advertisements.
The BBC has contacted Hasbro, Meta and the ASA for comment.
Zoë Osmond, CEO of GambleAware, said she was “extremely concerned” about the normalization of “game-like activities” for children.
“We know from our previous research that many children have reported how their online spaces are 'saturated' with content that often blurs the lines between gaming and betting,” she said.
“Exposure to this gaming-like content from an early age may lead to an increased risk of experiencing gaming-related harm later in life.”
