A recent investigation by the BBC has revealed that many mobile games in the UK are not properly disclosing the presence of loot boxes. Out of the top 45 highest-earning games on the Google Play store, only two comply with the Advertising Standards Authority’s (ASA) guidelines on revealing loot boxes.
Loot boxes offer players random rewards, accessible through gameplay or by spending real money. They are a significant revenue source, generating around $15 billion annually for the gaming industry, according to research from the Harvard Business School. Despite their growing popularity, loot boxes are not classified as gambling by the UK’s Gambling Commission.
In 2023, the trade organization Ukie set guidelines requiring that games with loot boxes must clearly inform players of their presence before purchase. However, the BBC investigation found that many games on the Google Play store are not following this rule. Instead, the existence of loot boxes is often revealed only when players opt to view additional game details.
The findings show that of the top 45 games, 26 contain loot boxes, yet only two openly advertise this feature. Monopoly GO, the top-grossing game with over 50 million downloads and $3 billion in revenue for Hasbro, does not mention loot boxes in its promotions.
Zoë Osmond, CEO of GambleAware, voiced concerns about how “gambling-like activities” such as loot boxes are becoming normalized for children. She stated, “Previous research indicates many children find their online environments filled with content that increasingly blurs the boundaries between gaming and gambling,” adding that early exposure to such content could heighten the risk of developing gambling issues later in life.
The ASA has previously acted against gaming companies for failing to disclose loot boxes in their advertisements. In July, Electronic Arts (EA) was criticized by the ASA for not sufficiently disclosing loot boxes in an ad for its Golf Clash game on Facebook, leading the text indicating in-game purchases to be deemed misleading due to its brief appearance.
The ASA continues to monitor the sector rigorously to ensure compliance. EGR Global has reached out to Hasbro for feedback on the investigation’s findings.
This summary first appeared in EGR Intel.