Top Mobile Games Found Non-Compliant with Loot Box Advertising Rules

The most popular mobile games in the UK are being advertised without revealing the inclusion of loot boxes, which are random in-game purchases described by critics as “exploitative” and “foster addiction”. The Advertising Standards Authority (ASA), the regulatory body, states that it prohibits and removes advertisements that do not clearly indicate whether a game contains a loot box. However, a BBC investigation revealed that only two of the top 45 highest-grossing games available on the Google Play store actually adhered to these regulations. Dr Jane Rigbye, chief executive of Young Gamers & Gamblers Education Trust (Ygam), characterized these findings as “deeply concerning.” She stated, “In the absence of robust regulation in gaming, it is essential for games to provide clear and transparent information about their features, allowing both parents and gamers to make informed decisions.” In a statement, the ASA commented: “This is an ongoing area of our work, and we’re closely monitoring the sector to discover the scale of compliance and act accordingly.” Nevertheless, some observers suggest the regulator lacks sufficient authority to address the issue effectively. “The ASA, although it has upheld some complaints, it takes so long to properly process all of these things – they will go to a company and say, ‘you should comply’, but they don’t comply,” remarked Leon Y Xiao, a video game regulation researcher at the IT University of Copenhagen. He added, “People are walking into a video game not knowing the potential risks, and this is assuming that people have even understood the risk of loot boxes to begin with.” Loot boxes contain random digital items that players can only uncover through gameplay or, more controversially, by making a payment. Game-makers have previously defended them by drawing a comparison to a chocolate egg containing a plastic toy, where children do not know the exact contents until the egg is purchased and opened. Critics, however, contend that they constitute a form of gambling, with a 2022 report by the Norwegian Consumer Council concluding that they “often involve exploiting consumers through predatory mechanisms, fostering addiction, targeting vulnerable consumer groups and more.” In the same year, the UK government resisted calls to regulate loot boxes, asserting that the video game industry could implement self-regulation. The trade body Ukie issued guidance in July 2023, which included a requirement to disclose loot boxes before games are purchased, granting the industry a year to comply. However, more than 12 months later, the BBC has found that the vast majority of major mobile games featuring loot boxes are still disregarding these rules, with most games only disclosing their presence if prospective players tap a small information button on the Play Store. Adrian Hon, head of game developer Six to Start, stated that the games industry has a history of “conveniently ignoring or forgetting regulations that might interfere with their ability to sell to players.” He noted, “We know that many people, including children, struggle with overspending on loot boxes,” and added that they are deliberately designed to be “habit-forming.” Hon concluded, “The least that games companies could do is disclose the presence of loot boxes, but they won’t even do that – it’s an indictment of their priorities and lack of care towards vulnerable players.” The BBC examined the advertisements for the top 45 highest-grossing games on Google’s Play Store, which, along with Apple’s App Store, are the primary platforms for accessing mobile games. Of these 45 titles, 26 were identified as containing loot boxes, with 22 of them being actively advertised concurrently. Nevertheless, only two of these titles explicitly stated the presence of loot boxes in their advertisements. Monopoly GO, the highest-grossing game on the Play Store that includes loot boxes, was among those that did not mention random in-game purchases in its advertisements. The game has been downloaded over 50 million times, generating more than $3 billion (£2.37 billion) in revenue, according to its IP owner, Hasbro. Mr Xiao informed the BBC that these findings are consistent with preliminary results from his own research, which has also indicated that approximately 90% of games containing loot boxes do not disclose this in their advertisements. The BBC has reached out to Hasbro, Meta, and the ASA for comment. Zoë Osmond, CEO of GambleAware, expressed that she was “extremely concerned” about “gambling-like activities” becoming normalized for children. She stated, “We know from our previous research that many children have reported how their online spaces are ‘saturated’ with content which often blurs the lines between gaming and gambling.” Osmond added, “Exposure to this gambling-like content from a young age can lead to an increased risk of experiencing gambling harm later in life.”